London, 15 September, 2023, (Oilandgaspress) –OCI Global today announced an agreement to offtake green hydrogen from New Fortress Energy Inc.’s (NFE) (NASDAQ: NFE) ZeroParks beginning in 2025, following a competitive bidding process. The agreement will allow OCI Global to significantly scale up green ammonia production capacity to approximately 160,000 tons per year in Beaumont, Texas.
This agreement follows the 100-megawatt (MW) electrolyzer system order from Electric Hydrogen Co. (EH2) announced by New Fortress Energy on Tuesday. The green hydrogen will be produced by ZeroParks, NFE’s hydrogen business, using proton exchange membrane (PEM) technology and delivered to OCI’s facilities in Beaumont, Texas where it will then be converted into green ammonia. NFE’s first green hydrogen project, ZeroPark I, will come online in two phases; the first phase in 2025, allowing OCI to produce approximately 80,000 tons per year of green ammonia and the second, in 2026, doubling OCI’s production capacity to 160,000 tons per year.
OCI produced its first tons of hydrogen-based green ammonia earlier this year at its Egypt Green facility, which is owned by Fertiglobe, a strategic partnership between OCI Global and ADNOC. Scaling its global green hydrogen-based production with capacity in the U.S. confirms OCI’s leadership in low carbon and renewable ammonia to meet the coming demand from emerging applications including as a shipping fuel and for power generation, and to decarbonize existing end-markets including the agricultural and industrial space. Green hydrogen can also be used to produce green methanol, the fuel choice for the decarbonization of shipping and road fuels today.
The new plans complement the company’s large-scale blue ammonia project in Texas, in partnership with Linde plc (NYSE: LIN), which is scheduled to begin production in 2025. The new ammonia site has been developed so it can use green hydrogen as a feedstock in the future to further increase OCI’s green ammonia production capabilities.
By leveraging its existing infrastructure, OCI can scale production to meet growing demand at pace and without significant capital expenditure, while leveraging the incentives offered under the Inflation Reduction Act’s 45V program.
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