Linde investing $1.8 bn to supply Clean Hydrogen to OCI’s Blue Ammonia Project
Linde has announced the signing of a long-term agreement to supply clean hydrogen and other industrial gases to OCI's new world-scale blue ammonia plant in Beaumont, Texas.
The company will build, own and operate an on-site complex to include an autothermal reforming with carbon capture, along with a large air separation plant. The new complex will be integrated into Linde's extensive Gulf Coast industrial gas infrastructure.
"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."
The facility 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, according to the company. Linde will supply OCI with clean hydrogen by sequestering more than 1.7 million metric tons of carbon dioxide emissions each year.
"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 markets 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, OCI. "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."
In addition to supplying OCI, Linde has also said that it will use its extensive pipeline network to provide clean hydrogen to existing and new customers in the U.S. Gulf Coast, addressing the increasing demand from companies to decarbonize their operations.
The said facility will also supply atmospheric and rare gases to existing and new customers. Linde's total investment will be approximately $1.8 billion, and the project is expected to start up in 2025, according to the company's official statement.
Linde claims to be actively helping its customers to decarbonize their operations with the latest hydrogen technologies through its world-class engineering organization, key alliances and ventures, and leveraging its extensive experience and infrastructure.
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The company adds that it is developing clean hydrogen projects across a range of applications and industries and growing its established hydrogen business along the entire value chain.