OCI Global Enters into Green Hydrogen Supply Agreement with New Fortress Energy’s ZeroParks for Green Ammonia Production in Texas
09.16.2023 By Tank Terminals – NEWS
September 16, 2023 [OCI]- OCI Global (Euronext: OCI), a world-leading producer of ammonia and methanol has 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 geen 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 artnership 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.
Nassef Sawiris, Executive Chair, OCI Global said:
“Today’s announcement cements OCI’s continued focus on the energy transition and hydrogen fuels, representing another milestone in our decarbonization journey as a business. Ammonia and methanol are the logical hydrogen carriers to drive this transition and the coming demand from the transportation sector provides the foundation for our scale-up in production and new technologies. NFE is an established energy player and developer and we are excited to start his partnership with them at our Beaumont complex, which is ideally located in the center of the Gulf Coast, allowing us to continue to increase and optimize our over-the-fence feedstock portfolio.”
Wes Edens, Chairman and CEO, New Fortress Energy said:
“OCI is a leading global producer and distributor of hydrogen-based products and today’s announcement showcases our focus on developing green hydrogen projects of scale to successfully decarbonize hard-to-abate corners of the global economy such as agriculture, power, and marine fuels. OCI is already at the forefront of decarbonization efforts in the international arena which made them a clear and solid choice as a partner.”
The transactions described in this press release are subject to customary terms and conditions.
Pro Trial: Access 12,600 Tank Terminal and Production Facilities
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionabl tank storage industry data
Linked Terminals
Latest Posts
Europe’s Natural Gas Prices Fall After Australian LNG Strikes End
09.22.2023 – NEWS
September 22, 2023 [Oil Price]- The benchmark natural gas prices in Europe and the UK dropped ear…
Read More
Oil Prices Rise as Russia Fuel Export Ban Stokes Supply Concerns
09.22.2023 – NEWS
September 22, 2023 [Reuters]- Oil prices rose on Friday as renewed global supply concerns from Ru…
Read More
TotalEnergies to Talk About Namibia Oil Exploration, Share Buybacks
09.22.2023 – NEWS
September 22, 2023 [Reuters]- TotalEnergies (TTEF.PA) is expected to lay out the potential for …
Read More
ExxonMobil Expands Chemical Production at Baytown
09.21.2023 – NEWS
September 21, 2023 [ExxonMobil]- ExxonMobil today announced the startup of two new chemical produ…
Read More
SEE ALL POSTS
Company
ABOUT
HISTORY
VALUES
MISSION & VISION
CONTACT
PRIVACY POLICY
TERM OF USE
Product
BENEFITS
PRICING
FAQS
14 DAYS TRIAL
VESSEL CLEARING
SSSCL SYSTM
TERMINAL MARKETPLACE
Segments
EQUIPMENT SUPPLIERS
TERMINAL OPERATORS
PRODUCT OWNER
TRADING COMPANIES
CONSULTANTS
INVESTORS
TERMINAL SALE MANAGER
Subscribe to our Newsletter
Sign up with your email address to receive news and updates.
Your email
SIGN UP
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
AcceptPrivacy policy
Get better at searching, analyzing and taking action on
tank terminal data
Start Accessing The Data
