ConocoPhillips and JERA Americas sign ammonia off-take deal with Uniper

ConocoPhillips and JERA Americas are one step closer to realising their proposed two-million-tonnes-per-annum ammonia plant on the US Gulf Coast.

In a bid to accelerate the production and supply of low carbon fuel to the US, Europe, and Asia, the duo has signed a Heads of Agreement with German energy company Uniper.

Under terms of the deal, Uniper will purchase ammonia from the site.

It is hoped the project will also include carbon capture and sequestration (CCS) capabilities.

The announcement builds on a Memorandum of Understanding (MoU) the parties signed in September 2022 to assess the potential for developing ammonia production sites on the US Gulf Coast.

Steven O’Rourke, CEO of JERA Americas, said the rapid development of global-scale, low carbon hydrogen and ammonia production is critical to the timely realisation of our collective global energy transition initiatives.

According to the Energy Information Administration (EIA), as of 1st April 2021, ammonia is produced at 31 plants in 17 US states and shipped around the country by pipeline, rail, barge, and truck.

The US Geological Survey, further states that US ammonia production has been increasing since 2015, rising 46% from 11.6 million metric tonnes per year to 17.0 million metric tonnes per year in 2020.

Carsten Poppinga, Chief Commercial Officer for Uniper SE, added, “Developing production capability now to ensure the clean hydrogen and ammonia volumes that will be needed in the future is a key aspect to accelerating the energy transition in Europe and globally.”

Uniper has separately announces its plans for a “Green Wilhelmshaven” with a combination of hydrogen imports and production to create a common European hydrogen market.

The company has already submitted the project to the German Federal Ministry of Economics as an Important Project of Common European Interest (IPCEI). IPCEIs are intended to promote integrated projects along the entire hydrogen value chain.

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