News and Highlights
- Enbridge and Yara International recently announced a letter of intent (LOI) to jointly develop a blue ammonia facility at the Enbridge Ingleside Energy Center near Corpus Christi, Texas. Should the project receive a final investment decision (FID) to proceed, it could be producing 1.2-1.4 million tons of ammonia by 2027.
- Two regional hydrogen hubs confirmed that their applications for federal funding have been filed with the Department of Energy (DOE). The Northeast Regional Clean Hydrogen Hub and the Midwest Alliance for Clean Hydrogen were both already on our list of projects encouraged by the DOE to submit a full application.
Blue Project Announcements:
Enbridge and Yara International announced the signing of a letter of intent (LOI) to pursue a potential blue ammonia facility at Ingleside, Texas, capable of producing 1.2-1.4 million tons per year of blue ammonia. Hydrogen for the proposed facility would be produced via autothermal reforming (ATR) of natural gas, with about 95% of the carbon dioxide captured and stored geologically. While the Ingleside project has not yet received a final investment decision (FID) to proceed, it could be producing ammonia by 2027 if things go as planned. Natural gas for the ATR plant would be sourced from Enbridge’s Texas Eastern Transmission Pipeline (TETCO), according to press around the project. We estimate about 75,000 MMBtu/day of hydrogen would be produced to meet the anticipated ammonia output, suggesting at least that amount of gas would need to be sourced via TETCO. Carbon dioxide produced in the ATR process would be captured and stored, potentially at a nearby CO2 hub under consideration by Enbridge and Oxy Low Carbon Ventures. Interestingly, Humble Midstream decided to exit their joint venture with Enbridge as part of the deal with Yara. Humble did not specify the financial terms of its departure. Note that this project is #20 in our list on page 5.
Hydrogen Hub Updates:
The Northeast Region Clean Hydrogen Hub announced late last week that it has submitted an application to the Department of Energy’s (DOE) federal hydrogen hub funding program. The Northeast effort includes the states of New York, New Jersey, Maine, Rhode Island, Connecticut, Massachusetts, and Vermont, the latter of which we did not previously list as a participant state in our table on page 9. Though the official application is no surprise, given it was already confirmed that the Northeast hub had been encouraged by the DOE, the project announcement revealed a few additional details on the effort. Investment in the project, should it move forward, is expected to total $3.62 billion, with an unspecified amount to come through federal funding. The Northeast Regional Clean Hydrogen Hub is also said to include over a dozen projects spread across the seven participating states.
Another hub announced its formal application in recent days, with the Midwest Alliance for Clean Hydrogen (MachH2) issuing a press release on Monday. There aren’t a ton of details available on MachH2, but it is said to include more than 60 public and private entities. It appears to be led by the states of Illinois, Indiana, and Michigan.
