In a groundbreaking ceremony, Yara International ASA and BASF Group today initiated the construction of a world scale ammonia plant at BASF’s site in Freeport, Texas. The plant will use hydrogen as raw material, reducing both capital expenditure and carbon dioxide emissions generated by the plant.
“I am very pleased to be here today, initiating the construction of an important investment for Yara – alongside our partners in BASF Group. The building of the Freeport Ammonia plant is a firm demonstration of how we deliver on our growth strategy,” said Torgeir Kvidal, President and CEO of Yara.
In addition to becoming a strategic asset in the North American market, the Freeport ammonia plant will be designed and engineered with state-of-the-art technology, that will further ensure operational excellence.
In contrast to most ammonia facilities, the main feedstock is hydrogen and nitrogen supplied via pipeline from Praxair Inc. “This feature eliminates the need for the ‘front end’ of a conventional ammonia plant, reducing capital costs, while further enhancing environmental performance. Yara and BASF are also investing to minimize other impacts that could be associated with a “standard” ammonia plant, including noise and NOX emissions,” Torgeir Kvidal said.
This project will further strengthen Yara’s position in the global ammonia market and increase our footprint in the United States. I would like to thank BASF for putting trust in Yara and we look forward to a long and good relationship,” Torgeir Kvidal concluded.
The ammonia plant will be owned 68 percent by Yara and 32 percent by BASF. The plant will have an annual capacity of about 750,000 metric tons. Each party will off-take ammonia from the plant in accordance with its equity share. Total capital investment for the plant is estimated at USD 600 million. Yara will in addition build an ammonia tank at the BASF terminal, bringing Yara’s total investments to USD 490 million. BASF will in addition upgrade its current terminal and pipeline assets. Yara’s share of the produced ammonia will mostly be distributed to industrial customers in North America, in addition to supplying the agricultural sector.