But the lure for OCI and others of making ammonia with a smaller carbon footprint is a business with potential beyond the farm.
is the question, and I think it's a good question," OCI CEO Ahmed El-Hoshy told Reuters, when asked why his company is betting on producing so-called "blue ammonia."
But even with U.S. support, blue ammonia economics hinge on further government incentives.
If utility premiums don't emerge, OCI plans to use its Texas blue ammonia to make fertilizer in The Netherlands, where the company has under-utilized its plants due to high natural gas prices.
OCI's Texas plant, to start production in 2025, will produce 1.1 million metric tons annually.
Persons:
Ahmed El, Hoshy, Alexander Derricott, TD Cowen, JERA, Yara, Stephan Werner, Werner, Katrine Petersen, Petersen, Chris Bohn, Oystein Kalleklev, Harald Fotland, Fotland, Rod Nickel, Yuka Obayashi, Anna Driver
Organizations:
Reuters, OCI, REUTERS, Group, CF Industries, Gulf, CF, Yara, Mitsui, Mitsubishi, Nutrien, Investors, Germany's DWS, International Maritime Organization, Flex LNG, Avance, Victoria Klesty, Thomson
Locations:
Beaumont , Texas, U.S, Texas, Japan, South Korea, Netherlands, United States, El, OCI's Texas, Gulf Coast, Winnipeg , Manitoba, Oslo, Tokyo, Bengaluru