Nutrien suspends work on US low-carbon ammonia plant

Market: Fertilizers, Hydrogen
03/08/23

North American fertilizer producer Nutrien has suspended work on a planned low-carbon ammonia project in Geismar, Louisiana.

The firm said it has halted the work because estimated capital costs have increased and because of "continued uncertainty on the timing of emerging uses for clean ammonia". It said it is prioritising "other capital allocation alternatives".

Nutrien first announced plans to construct the facility at its existing Geismar complex in May 2022, saying at the time that it would be the "world's largest clean ammonia production facility". It had been aiming to take a final investment decision on the $2bn facility in 2023, with construction expected to begin in 2024 and "full production" to start in 2027.

Nutrien said the facility would use natural gas autothermal reforming technology "to achieve at least a 90pc reduction in CO2 emissions" and that around 1.8mn t/yr of carbon dioxide could be captured and stored in geological formations. The firm signed a preliminary agreement with Japanese conglomerate Mitsubishi for offtake of up to 40pc, or 480,000 t/yr of ammonia, from the plant for delivery "to the Asian fuel market, including Japan".

Nutrien's Geismar facility was one of several large sites targeting hydrogen and ammonia production from natural gas with carbon capture and storage or utilisation that have been announced across the US in recent years. As of early June, 11 out of 20 blue ammonia projects planned globally had been announced in the US — totalling 16.3mn t/yr out of nearly 26mn t/yr of potential capaciy worldwide.

By Nick Georgiou and Stefan Krumpelmann

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