(RTTNews) – Industrial gases and engineering company Linde plc (LIN) announced Monday that it has signed a long-term agreement to supply clean hydrogen and other industrial gases to OCI’s new blue ammonia plant in Beaumont, Texas.
Linde’s total investment will be around $1.8 billion and the project is expected to start up in 2025.
Under the deal, Linde will build, own and operate an on-site complex which will include autothermal reforming with carbon capture, plus a large air separation plant. The new complex will be integrated into Linde’s extensive Gulf Coast industrial gas infrastructure.
It will supply clean hydrogen and nitrogen to OCI’s 1.1 million ton per annum blue ammonia plant. The company noted that it is the first greenfield blue ammonia facility of this scale to come onstream in the United States.
Linde will supply OCI with clean hydrogen by sequestering more than 1.7 million metric tons of carbon dioxide emissions each year.
In addition to supplying OCI, Linde will also provide clean hydrogen to existing and new customers in the U.S. Gulf Coast. The facility will also supply atmospheric and rare gases to existing and new customers.
Sanjiv Lamba, Chief Executive Officer, Linde, said, “Our strategy is to support decarbonization by working with off-takers, like OCI, to safely and reliably supply low-carbon industrial gases at scale. With Linde’s track record in successfully executing complex projects, its extensive pipeline network, and support from the U.S. Inflation Reduction Act, the company is well positioned to secure many more
clean energy projects.”
Ahmed El-Hoshy, Chief Executive Officer, OCI said the Beaumont facility will allow it to build and strengthen blue ammonia and clean fuels platform, supplying both the U.S. and export markets with blue ammonia, an ideal solution to decarbonize hard-to-abate sectors such as agriculture, power and marine fuels at a competitive cost.