LSB Industries & partners: low-carbon ammonia production on the Houston Ship Channel

INPEX Corporation, Air Liquide, LSB Industries and Vopak Moda have agreed to collaborate on the pre-FEED stage of a new low-carbon ammonia project in Texas.

The project will be located on the Houston Ship Channel, the second largest petrochemical corridor in the world. Vopak Moda already operates an ammonia terminal that features storage tanks and a newbuild dock with multiple deep-water berths. The location also has access to utilities and multiple pipelines.

The project is expected to produce over 1.1 million tonnes per year of CCS-based ammonia by the end of 2027, with the potential for further expansion. The project partners have extensive expertise across production, operation, storage, and export for low-carbon ammonia. A feasibility study on the project was completed earlier this year.

As part of this partnership, Air Liquide and INPEX would collaborate on hydrogen production, with Air Liquide supplying its Autothermal Reforming (ATR) technology combined with its proprietary carbon capture technology. Air Liquide will also supply its proprietary Air Separation Unit (ASU) for nitrogen and oxygen production.

LSB and INPEX would collaborate on low-carbon ammonia production, with LSB leading the selection of the ammonia loop technology provider, the pre-FEED, and the EPC of the facility. LSB would also oversee the daily operation of the ammonia loop. INPEX and LSB would sell the low-carbon ammonia and lead on off-take agreements and other business development functions.

Ammonia produced from this facility would be exported to Asia for the power generation industry, with small fractions used in Europe and the US. INPEX, with stakes in both hydrogen and ammonia production, will likely be the largest investor in the overall project.

This innovative endeavour marks a significant milestone to create a clean fuel supply chain for a sustainable future. By harnessing the power of cutting-edge technologies and collaborative partnerships …we are accelerating the transition to a low-carbon world, while solidifying our position as a pioneer in energy transformation and a responsible global energy player.

INPEX Representative Director, President & CEO Takayuki Ueda, in LSB’s official press release, 3 October 2023

As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction, and operation of the ammonia loop. We are excited to be part of this consortium, comprised of best-in-class energy-related companies, and look forward to working with them as we make the vision of this world scale clean ammonia facility a reality.

Mark Behrman, LSB Industries President and CEO, in his organisation’s official press release, 3 October 2023

Vopak Moda has invested in our talented, experienced workforce and state-of-the-art storage and marine infrastructure to be a leader in the emerging low-carbon ammonia export market. We believe the unbeatable combination of project expertise, technology, off-taker relationships and market credibility position Vopak Moda, Air Liquide, INPEX and LSB to be first movers for a new wave of low-carbon energy exports.

Joint statement by Maria Ciliberti, Vopak President US and Canada, and Jonathan Ackerman, Moda Midstream Co-Founder and CEO, in LSB’s official press release, 3 October 2023

Air Liquide is committed to working with its customers and industry partners to provide innovative and sustainable technology solutions to decarbonize traditional industrial processes, like ammonia production. We are proud to contribute our hydrogen production expertise and portfolio of sustainable technologies in order to produce low-carbon hydrogen to support decarbonization of industrial markets. Together with our customers, we can reduce carbon emissions in industrial basins and advance toward a more sustainable future.

Adam Peters, CEO of Air Liquide North America, in LSB’s official press release, 3 October 2023

LSB’s other projects centred around low-carbon ammonia production include:

• An agreement with Lapis Energy to develop CCS infrastructure for the sequestration of about 450,000 tonnes of CO₂ annually at its El Dorado plant in Arkansas.
• Decarbonising 13% of ammonia production at its Pryor, Oklahoma plant by incorporating 30 MW grid-connected electrolysis (20 MW alkaline electrolysis & 10 MW solid oxide electrolysis).
• A pilot project partnership with Amogy in which LSB will supply low carbon ammonia for use as a marine fuel. Amogy’s proprietary ammonia to power system will be retrofitted onto a Southern Devall-operated barge on the Mississippi river.