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BASF and Yarra to Develop World-Scale Low-Carbon Blue Ammonia Plant in US Gulf Coast

BASF and Yarra Clean Ammonia are collaborating on a joint study to develop and build a world-scale low-carbon blue ammonia production facility with carbon capture in the US Gulf region . The two companies are studying the establishment of a plant with a combined capacity of 1.2-1.4 million tonnes per annum to meet growing global demand for low-carbon ammonia.

“Yara and BASF have worked together successfully in the past and we are excited to be exploring new clean ammonia projects together. In line with Yara’s clean ammonia strategy, we are systematically developing asset support supplies to reduce carbon emissions from agriculture and to provide Fuels, power production and new areas of clean ammonia such as ammonia as a hydrogen carrier,” said Magnus Krogh Ankarstrand, president of Yarra Clean Ammonia.

Around 95% of carbon dioxide (CO2) is expected to be captured from the production process and permanently stored underground. This will enable Yara to offer customers clean ammonia with a significantly reduced product carbon footprint. For BASF, the new plant will serve as a reverse integration to its low-carbon ammonia needs and reduce the carbon footprint of its amino products.

Dr. Ramkumar Dhruva, President of BASF’s Monomers Division, said: “This project underscores BASF’s commitment to driving the sustainable transformation of the chemical industry. Our existing Verbund site in the region, with its integrated logistics and advanced infrastructure, is ideally suited to integrate a new world ammonia plant, which has the potential to significantly improve the carbon footprint of our own operations and the various industries we serve.”

BASF and Yara are long-term partners and are currently operating successfully at a world-scale ammonia plant at BASF’s Freeport facility. The two companies plan to complete a feasibility study on a low-carbon blue ammonia production facility by the end of 2023.

The product characteristics of blue ammonia are the same as conventionally produced ammonia. As the carbon dioxide produced during production is captured and not released into the atmosphere, blue ammonia plays an important role in the transition to alternative, less carbon-intensive products. BASF’s goal is to reduce absolute CO2 emissions by 25% compared to 2018 levels by 2030 and to achieve net-zero CO2 emissions by 2050. Yarra has a strong track record in reducing greenhouse gas emissions. Since its launch in 2004, Yarra has almost halved its emissions and will cut a further 30% by 2030. Yarra’s aim is to be climate neutral and enable a nature-based future of food development.