Mega-ammonia project could position Louisiana as clean energy leader

A proposed $7.5 billion ammonia production facility in Ascension Parish could position Louisiana as a global leader in clean energy.

"It would be the largest [ammonia production supply chain]," Vee Godley, Senior VP of Clean Hydrogen Works, told the Clean Hydrogen Task Force committee. "We're on a full build out."

According to Godley, key financial and logistical milestones have been completed, including budget finalization and other financing was completed in 2023. They have also begun permitting for eight trains to transport the ammonia.

"Right now, the total globe produces around 200 million tons, so that we're talking 150% increase in growth within a 25 year plan span," Godley said.

The ammonia is also different from much of the supply in one crucial way.

"The difference between our product and the traditional ammonia is nothing other than the carbon intensity," Godley said.

Both products are made through the same production process, but CHW captures carbon internally, never releasing it into the air.

This is different from air capture technology, which people often associate with carbon capture.

Instead of using scrubbers to pull CO2 from the atmosphere, the method contains the carbon within a closed system, something not possible with conventional ammonia production, where only some carbon can be captured.

A central focus of the initiative is community engagement. The developers have established an office in Donaldsonville and created a community advisory panel to facilitate dialogue with local residents.

"You don't spend seven and a half billion dollars and shortcut the process," the representative emphasized, stressing the project's environmental integrity and transparency.

The company is also launching workforce development programs, offering training and job placement to locals, including those facing barriers to employment. Godley also mentioned that the jobs will be well paying.

"We are building a project for the community, and the community can be proud of it," Godley said.

The project includes a myriad of industry leading partnerships and investment.

ExxonMobil will utilize its extensive pipeline network to capture and store CO2 emissions, Hafnia will handle global distribution, leveraging Clean Hydrogen Works strategic location near export facilities and the Mississippi River and Japanese transportation giant MOL will help deliver clean ammonia for use in global energy and industrial markets.

A final investment decision is anticipated in 2025, with operations beginning in 2029.

The developers selected Louisiana for its established infrastructure, workforce familiarity with the ammonia and hydrogen industries, and strategic access to global shipping routes.

"Ascension Parish is a fantastic place to be," Godley noted, citing its robust industrial base and cost advantages.

Ammonia, traditionally associated with fertilizer, will serve broader applications, particularly in decarbonizing energy systems. Target markets include Japan, Korea, Europe, and marine transport.

The facility's initial production will focus on energy-related uses such as reducing emissions in coal-fired power plants and steel manufacturing.

The project has partnered with ExxonMobil for carbon sequestration. ExxonMobil's pipeline network will transport carbon dioxide emissions from the facility to secure storage sites. MOL and Hofnia bring logistical expertise to ensure ammonia is transported efficiently to global markets.