Louisiana to host $7.5 billion clean hydrogen-ammonia production and export project

Singapore-based tanker owner and operator Hafnia has partnered with Clean Hydrogen Works (CHW) to explore the development of a new clean fuel project in Ascension Parish, Louisiana.

Hafnia's CEO Mikael Skov. Courtesy of Hafnia

Hafnia and CHW will collaborate on the development of a global-scale clean hydrogen-ammonia production and export project, Ascension Clean Energy (ACE), located on the West Bank of the Mississippi River in Ascension Parish, Louisiana.

This project aims to capture up to 98% of CO2 emissions from its processes and will provide a cost-effective, scalable pathway to supply carbon-free energy, the developers said.

Within the scope of the project, additional technologies are being explored which could result in zero-carbon or even carbon-negative hydrogen-ammonia production at the facility.

Furthermore, the expected project investment of $7.5 billion will project 350 permanent full-time jobs in the state of Louisiana.

For its part, Hafnia will help develop safe, sustainable, and efficient solutions to ship ACE’s clean hydrogen ammonia to emerging clean energy markets across the globe.

“This marks a strategic step in shaping the future of the Hafnia transport portfolio, utilising purpose-built vessels against long-standing contracts in the zero-carbon space”, the company said.

Anticipated production is currently targeted by late 2027 with the shipment of the clean energy commencing in 2028.

Other project shareholders include one of the world’s largest CO2 pipeline operators Denbury Carbon Solutions, a subsidiary of Denbury, Inc, who will move the CO2 output via pipelines for underground storage purposes (sequestration).

Key points of Denbury’s agreement with CHW are as follows:

  • Denbury has the exclusive right to transport and sequester all of the CO2  captured at ACE for a period of 12 years following startup, with multiple extension options.
  • Captured CO2 volumes are estimated to be approximately 12 million metric tons per year (mmtpa), comprised of 6 mmtpa from each of the two ammonia blocks.
  • Permanent, secure underground storage of the CO2 is anticipated in one or more of Denbury’s sequestration sites located in close proximity to Denbury’s CO2 pipeline infrastructure.
  • Denbury has invested $10 million into the ACE project through an investment in Clean Hydrogen and has committed to invest another $10 million when certain project milestones are achieved.

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