Yara and Enbridge (TSX:ENB) to construct a low-carbon blue ammonia project

• Yara Clean Ammonia and Enbridge (ENB) are partnering to develop a low-carbon blue ammonia production facility near Corpus Christi, Texas
• The facility will have a capacity of 1.2-1.4 million tons of low-carbon ammonia per annum
• The project is expected to cost between $2.6 and $2.9 billion and will use autothermal reforming with carbon capture
• The project is expected to begin production in 2027-2028 and play a significant role in decarbonizing agriculture and serving new clean ammonia segments
• Enbridge is a hydrocarbon and renewable energy provider active in Canada, the U.S. and Europe
• Enbridge (ENB) opened trading at $51.52

Yara and Enbridge (ENB) have signed a letter of intent to build a low-carbon blue ammonia production facility in Texas.

The facility will have the capacity to produce 1.2–1.4 million tons of low-carbon ammonia per annum and will use autothermal reforming with carbon capture.

The partnership will play a significant role in decarbonizing agriculture and serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier.

Total costs are estimated between $2.6 and $2.9 billion with production expected to begin in 2027-2028.

Yara, the world’s largest ammonia distributor, is expected to contract full offtake from the facility. The company trades on the Oslo Stock Exchange and amassed revenue of US$24.1 billion in 2022.

Enbridge’s Texas Eastern Transmission Pipeline will provide transportation service for feed gas for production, while the CO2 captured will be transported to a nearby sequestration hub, which Enbridge and Oxy Low Carbon Ventures are advancing.

Enbridge is a hydrocarbon and renewable energy provider active in Canada, the U.S. and Europe.

Enbridge (ENB) opened trading at $51.52.

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