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Fertilizer company OCI bets big on climate-friendly ammonia

Rod Nickel and Victoria Klesty of Reuters report on OCI’s bet on climate-friendly ammonia.

The C3 Take
  • Dutch fertilizer company OCI is building a $1 billion commercial plant in Texas that will produce ammonia–a critical ingredient in fertilizer–with a low carbon footprint. 
  • The plant will also include carbon capture technology that will be able to capture and sequester 95% of the plant’s emissions.
  • If there is not ample domestic demand for the blue ammonia produced at the OCI facility, the company will sell its product to farmers in the Netherlands who have been forced to pay steep premiums for fertilizer due to high natural gas prices.
  • The plant is expected to come online in 2025 and produce 1.1 million tons of blue ammonia annually.

“But the lure for OCI and others of making ammonia with a smaller carbon footprint is a business with potential beyond the farm. That includes production of fuel for coal-burning Asian utilities and for ships, both uncertain but potentially lucrative commercial possibilities.”

Read the full article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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