OCI Chooses Linde as Provision Supplier for Clean Hydrogen in OCI's Blue Ammonia Venture in Texas, with a $1.8 Billion Investment
February 6, 2023
In a significant stride towards sustainable energy solutions, Linde and OCI have joined forces to establish the largest blue ammonia facility in Texas. The project, set to commence production in 2025, is a world-scale blue ammonia facility on the U.S. Gulf Coast.
Under the long-term agreement, Linde will supply clean hydrogen and nitrogen feedstocks to OCI's new blue ammonia plant in Beaumont, Texas. The partnership aims to reduce the carbon footprint of downstream customers across various industries by producing blue ammonia, a cleaner alternative to traditional ammonia.
Linde will construct, own, and operate an on-site complex that includes autothermal reforming with carbon capture and a large air separation plant. The complex will be integrated into Linde's existing Gulf Coast industrial gas infrastructure.
Jürgen Nowicki, Executive Vice President and CEO of Linde Engineering, leads the executive leadership team at Linde. The chairman of the supervisory board of Linde plc, the partner of OCI N.V. in supplying pure hydrogen and nitrogen to OCI's new blue ammonia plant, could not be explicitly named in the search results.
OCI's CEO, Ahmed El-Hoshy, expressed his excitement about the project, stating that the Beaumont facility will help build and strengthen OCI's blue ammonia and clean fuels platform. The facility is expected to supply both the U.S. and export market with blue ammonia.
The total investment in the project by Linde is approximately $1.8 billion, while OCI's total investment cost is expected to be below $1 billion. Linde's expertise in managing large-scale and complex engineering projects, coupled with its extensive pipeline network and support from the U.S. Inflation Reduction Act, positions the company well to secure more clean energy projects.
In addition to this, Linde will sequester over 1.7 million metric tons of carbon dioxide emissions each year, further contributing to the project's environmental benefits. This strategic move by Linde supports decarbonization by supplying low-carbon industrial gases to off-takers like OCI.
The construction of the project has already begun, marking a significant step towards a more sustainable future for the energy industry. The new complex will supply clean hydrogen and nitrogen to OCI's 1.1 million ton per annum blue ammonia plant, the first of its scale to come onstream in the United States.
This collaboration between Linde and OCI is a testament to the growing commitment towards sustainable energy solutions and the potential for such partnerships to drive innovation and reduce carbon emissions in the industry.
