Energy and chemical companies unite for low-carbon ammonia production project on Houston Ship Channel

INPEX Corporation, Air Liquide Group, LSB Industries, Inc., and Vopak Moda Houston LLC have partnered to collaborate on a low-carbon ammonia production and export project along the Houston Ship Channel. The project's initial phase aims to produce over 1.1 million tonnes per annum (MTPA) of low-carbon ammonia by the end of 2027.

According to Vopak Moda, the project's preferred location on the Houston Ship Channel, which is the second largest petrochemical corridor globally, takes advantage of existing infrastructure assets. The parties involved completed a feasibility study earlier this year.

Vopak Moda has made significant investments in infrastructure for storing and handling bulk liquid products. Their ammonia terminal features storage tanks and a state-of-the-art dock with multiple deep-water berths. The project also benefits from easy access to essential utilities and proximity to pipelines capable of providing necessary raw materials such as natural gas and water.

Maria Ciliberti, Vopak President US and Canada, and Moda Midstream Co-Founder and CEO Jonathan Ackerman expressed their confidence in the project's potential. They stated, "The worldwide movement to decarbonize industry and transportation will drive strong global demand for low-carbon ammonia. Vopak Moda has invested in our talented, experienced workforce and state-of-the-art storage and marine infrastructure to be a leader in the emerging low-carbon ammonia export market. We believe the unbeatable combination of project expertise, technology, off-taker relationships, and market credibility position Vopak Moda, Air Liquide, INPEX, and LSB to be first movers for a new wave of low-carbon energy exports."

In this collaboration, Air Liquide and INPEX will work together on the production of low-carbon hydrogen, while LSB and INPEX will focus on low-carbon ammonia production. LSB will oversee the daily operation of the ammonia loop. INPEX and LSB will be responsible for marketing and selling the low-carbon ammonia, including negotiating off-take agreements with interested parties.

The project's aim aligns with the global movement to reduce carbon emissions and transition to cleaner energy sources. The production of low-carbon ammonia is expected to contribute to the decarbonization of various industries and transportation.