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OCI Selects Linde as Partner to Supply Clean Hydrogen to OCI’s World-Scale Blue Ammonia Project in the U.S. Gulf Coast
· Linde to supply clean hydrogen and nitrogen feedstocks to the new facility under a long-term agreement
· Project is largest blue ammonia facility of its kind in Texas, enabling the capture and sequestration of up to 1.7 million metric tons per year of CO2
· Construction has started and the project is on track to start production in 2025
OCI N.V. (Euronext: OCI) and Linde plc (NYSE: LIN; FWB: LIN), a leading global industrial gases and engineering company, today announced a partnership where Linde will supply clean hydrogen and nitrogen to OCI’s new blue ammonia facility under development in Beaumont, Texas under a long-term agreement.
Linde will build, own and operate an on-site complex which will include autothermal reforming with carbon capture, plus a large air separation plant. The new complex will be integrated into Linde’s extensive Gulf Coast industrial gas infrastructure. It will supply clean hydrogen and nitrogen to OCI’s 1.1 million ton per annum blue ammonia plant, the first greenfield blue ammonia facility of this scale to come onstream in the United States.
Linde will supply OCI with clean hydrogen, by sequestering more than 1.7 million metric tons of carbon dioxide emissions each year. OCI will upgrade the hydrogen to produce blue ammonia, which allows OCI to materially reduce the carbon footprint of its downstream customers along the value chain across a wide range of industries.
Linde's total investment will be approximately $1.8 billion, and OCI’s total investment cost is expected to be below $1 billion, including spending on upsized utilities and available land to allow for doubling to 2.2 mtpa capacity in the future. The project is expected to start up in 2025.
“The Beaumont facility will allow us to build and strengthen our world-leading blue ammonia and clean fuels platform, supplying both the U.S. and export market with blue ammonia, an ideal solution to decarbonize hard-to-abate sectors such as agriculture, power and marine fuels at a competitive cost,” said Ahmed El-Hoshy, Chief Executive Officer of OCI N.V. “Linde’s expertise in managing large-scale and complex engineering projects, and safely and reliably delivering industrial gases, made it a solid choice as a partner for this project.”
“Linde’s capabilities are already enabling the transition to a low carbon intensity economy,” said Sanjiv Lamba, Chief Executive Officer, Linde. “Our strategy is to support decarbonization by working with off-takers, like OCI, to safely and reliably supply low-carbon industrial gases at scale. With Linde’s track record in successfully executing complex projects, its extensive pipeline network, and support from the U.S. Inflation Reduction Act, the company is well positioned to secure many more clean energy projects.”