A joint venture of Yara International ASA and BASF Group has agreed to build a world-scale ammonia plant in Freeport, Tex., that will require expansion of hydrogen-production capacity by supplier Praxair Inc.
The 750,000-tonne/year ammonia plant will be built at BASF’s complex in Freeport for a total capital investment estimated at $600 million.
Yara, owning 68% of the plant, will build an ammonia tank at the BASF terminal, increasing its total investment to $490 million. BASF, with the remaining 32%, will upgrade its terminal and pipelines.
The plant will use the ammonia synthesis process of KBR Inc., which has the engineering, procurement, and construction contract.
Under a 20-year agreement, Praxair will supply 170 MMscfd of hydrogen and 2,000 tons/day of nitrogen.
It will invest more than $400 million to add hydrogen and nitrogen production capacity and extend its Gulf Coast pipeline systems 46 miles between Texas City and Freeport.
Praxair produces hydrogen via steam reforming of methane and can augment supply with byproduct hydrogen captured at crackers. It expects its pipeline expansions to be in operation in 2016 and deliveries to the ammonia plant to begin late in 2017.
