International gas producer Linde plans to supply Dutch chemical company OCI with hydrogen and other gases for the production of ammonia. Investments of around $1.8 billion are planned for new plants in Texas. The hydrogen produced will also be sold to other customers.
Linde made the announcement in a press release. The group plans to build and operate a complex at OCI's plant site in Beaumont, Texas, which will include an autothermal reforming facility with carbon capture and a large air separation plant. The new complex will also be integrated into Linde's large-scale industrial gases infrastructure on the Gulf Coast.
It will supply hydrogen and nitrogen to the OCI blue ammonia plant. The plant has an annual capacity of 1.1 million metric tons; according to the Group, it is the first of this size in the United States. During the production of blue ammonia, the CO2 produced is stored underground.
Linde's total investment is about $1.8 billion. The project is scheduled to come on stream in 2025.
Hydrogen for the Gulf Coast
In addition to supplying OCI, Linde plans to use its own pipeline network to supply clean hydrogen to existing and new customers on the U.S. Gulf Coast, meeting growing demand from companies to decarbonize their operations. The plant will also supply atmospheric and noble gases to existing and new customers.
Linde aims to play a "key role" in the energy transition. The company has been increasingly focusing on hydrogen and corresponding technologies along the value chain for several years. In 2022 alone, Linde has announced hydrogen projects with BASF, BP and Airbus, according to Wirtschaftswoche.
Sanjiv Lamba, Chief Executive Officer of Linde, said:
"Linde's capabilities are already enabling the transition to a low-carbon economy. Our strategy is to support decarbonization by working with customers like OCI to deliver low-carbon industrial gases safely and reliably at scale.
With Linde's track record of successfully delivering complex projects, its extensive pipeline network, and support from the U.S. Inflation Reduction Act, the company is well positioned to secure many more clean energy projects."
Ahmed El-Hoshy, Chief Executive Officer of OCI:
"The Beaumont facility will allow us to expand our world-leading blue ammonia and clean fuels platform. This will strengthen both our domestic and export markets with blue ammonia. It is an ideal solution for decarbonizing sectors such as agriculture, energy and marine fuels at a competitive cost."
