Yara, BASF scrap blue ammonia project on US Gulf Coast

Norwegian chemical firm Yara International and German chemical giant BASF have decided to scrap their plan to build a blue ammonia production plant with carbon capture and storage on the US Gulf Coast.

IMAGE: An aerial view of BASF and Yara’s ammonia plant in Freeport, Texas. BASF

The decision was guided by the companies’ commitment to prioritise initiatives with the greatest potential for long-term value.

Announced in 2023, the project had targeted the production of 1.2–1.4 million mt/year of blue ammonia, with about 95% of the CO₂ generated during production captured and stored underground.

The blue ammonia was intended for use as shipping fuel, in power generation, and as a hydrogen carrier.

While that project will not move forward, the companies will continue their joint operation of an ammonia plant at BASF’s Freeport, Texas site.

By Tuhin Roy

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