Clean Hydrogen Works exploring large-scale hydrogen and ammonia project in US Louisiana
HOUSTON (ICIS)–US project development company Clean Hydrogen Works announced it is exploring a plan to build in Louisiana a large-scale ammonia and hydrogen production and export facility in Ascension Parish.
Doing business as Ascension Clean Energy (ACE), in partnership with Denbury Carbon Solutions and Hafnia, the company estimates the proposed project will cost $7.5bn and have production of 7.2m short tons of ammonia annually.
Utilising carbon capture and sequestration processes to reduce emissions would produce blue ammonia which is expected to have heavy demand as a clean energy feedstock in global markets.
Denbury would transport the captured CO2 emissions through its existing pipeline network to one of its planned sequestration sites for deep underground storage. Hafnia would export the ammonia produced at the facility to emerging energy markets overseas.
“Louisiana’s emergence as a leader in the energy transition has attracted major investments from legacy companies as well as prospective investments from newer ventures like Clean Hydrogen Works, and that’s good news for our state,” said John Bel Edwards, Louisiana governor.
Clean Hydrogen Works said it hopes to make a final investment decision and begin construction in 2024, which would allow the initial phase of production to commence in 2027.
It is set to be constructed on a 1,700-acre site on the west bank of the Mississippi River in Donaldsonville. The company estimates 1,500 jobs would be created at the peak of construction.
“We are enthusiastic about the potential to bring this transformational project to Ascension Parish, which has an ideal location with existing infrastructure,” said Mitch Silver, Clean Hydrogen Works chief operating officer.
“Utilising clean hydrogen-ammonia production to meet the global demand for carbon-free affordable energy, Ascension Clean Energy aligns with Louisiana’s Climate Action Plan, specifically the state’s goal to be carbon neutral by 2050.”
The company estimates it would create 350 new direct jobs, and if the project moves forward as outlined, the Louisiana Economic Development agency estimates 1,122 new indirect jobs would result.
If a final investment decision is made, Clean Hydrogen Works would be eligible for a performance-based award of up to $7m to reimburse dock infrastructure expenses, payable over five years upon verification of job and payroll targets and river service infrastructure requirements being met.
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