BASF and Yara collaborate on low-carbon blue ammonia project in U.S. Gulf Coast

BASF and Yara Clean Ammonia have joined forces to undertake a collaborative study focused on establishing a large-scale facility for low-carbon blue ammonia production, coupled with carbon capture, in the U.S. Gulf Coast region. This project aims to assess the viability of constructing a plant with an annual capacity ranging from 1.2 to 1.4 million tons, in order to meet the rising global demand for environmentally-friendly ammonia.

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, expressed enthusiasm for the venture, highlighting the successful history of collaboration between Yara and BASF. He stated that this clean ammonia project aligns with Yara Clean Ammonia's strategy to develop asset-backed supply chains for decarbonizing agriculture and catering to emerging markets such as clean ammonia applications in shipping fuel, power generation, and hydrogen transportation.

The primary objective of the project is to capture approximately 95 percent of the carbon dioxide (CO2) emissions generated during the production process and store them permanently underground. This approach would enable Yara to provide its customers with clean ammonia that boasts a significantly reduced carbon footprint. For BASF, the new facility would serve as a backward integration to fulfill the company's demand for low-carbon ammonia, while simultaneously reducing the carbon footprint associated with its ammonia-based products.

Dr. Ramkumar Dhruva, President of the Monomers Division at BASF, emphasized that this initiative reflects BASF's commitment to driving sustainability in the chemical industry. Leveraging the advanced infrastructure and integrated material flows of their existing Verbund sites in the region, BASF envisions the integration of this world-scale ammonia facility as a means to substantially improve the carbon footprint of their operations and the industries they serve.

BASF and Yara have a longstanding partnership, successfully operating a joint world-scale ammonia plant at BASF's Freeport, Texas site. Both companies aim to conclude the feasibility study for the low-carbon blue ammonia production facility by the end of 2023.

Blue ammonia shares identical product characteristics with conventionally produced ammonia. However, its significance lies in the fact that the CO2 emissions produced during its production process are captured and prevented from being released into the atmosphere. This makes blue ammonia a crucial player in the transition to less carbon-intensive alternatives. BASF has set a target to reduce its absolute CO2 emissions by 25 percent by 2030 (compared to 2018) and achieve net-zero CO2 emissions by 2050. Yara, with a strong record in greenhouse gas reduction, has nearly halved its emissions since going public in 2004 and aims to further reduce them by an additional 30 percent by 2030. Yara's ultimate goal is to become climate-neutral and contribute to a nature-positive future in food production.