Air Liquide Collaborates with INPEX Corporation, LSB Industries, and Vopak Moda to Assess Low-Carbon Ammonia Production Feasibility
Air Liquide, in partnership with INPEX Corporation, LSB Industries, and Vopak Moda, is exploring the feasibility of a significant low-carbon ammonia production and export project, targeting an annual output of 1.1 million tonnes. Following a completed feasibility study, the group has agreed to collaborate on the pre-FEED (Front-End Engineering and Design) phase of the project. The aim is to have the project operational by 2027, with provisions for future expansions.
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The primary destination for the produced low-carbon ammonia is expected to be Asia, primarily for power generation purposes, with additional volumes slated for distribution in Europe and the United States. INPEX, with its vested interests in both hydrogen and ammonia production, is likely to be the largest investor in the project, covering the entire value chain from production to export.
Each partner in the project will play a distinct role in its development. Air Liquide and INPEX have joined forces for low-carbon hydrogen production, with Air Liquide contributing its Autothermal Reforming (ATR) technology and carbon capture expertise. LSB and INPEX will collaborate on low-carbon ammonia production, with LSB overseeing the selection of ammonia loop technology providers, pre-FEED activities, and the engineering, procurement, and construction of the facility. Additionally, INPEX and LSB will handle the sale of low-carbon ammonia and finalize off-take agreements with interested parties, potentially bringing in future project partners.
Vopak Moda, an existing operator of ammonia storage and handling infrastructure in the Houston Ship Channel, will retain ownership of the current infrastructure while planning to expand storage capacity as needed to support the project.
As of April 1, 2021, the Energy Information Administration (EIA) reports that ammonia production is conducted at 31 plants located across 17 U.S. states, with distribution occurring via pipelines, rail, barge, and trucks. Furthermore, data from the U.S. Geological Survey reveals that U.S. ammonia production has been steadily increasing since 2015, rising by 46% from 11.6 million metric tonnes per year to 17.0 million metric tonnes per year in 2020.
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According to the article by Procurement Resource, Air Liquide is partnering with INPEX Corporation, LSB Industries, and Vopak Moda to explore a low-carbon ammonia production and export project aiming for an annual output of 1.1 million tonnes. They plan to have it operational by 2027, primarily targeting Asia for power generation with additional distribution in Europe and the United States.
Each partner has distinct roles, with Air Liquide providing hydrogen production technology, LSB overseeing ammonia production, and INPEX handling the entire value chain. Vopak Moda will manage existing ammonia infrastructure in the Houston Ship Channel, expanding it as needed. U.S. ammonia production has been increasing steadily, reaching 17 million metric tonnes in 2020.
