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Home Home - Projects
hydrogen

Clean Hydrogen Works Selects McDermott for FEED Contract for ACE Project

Anela DoksoBy Anela Dokso21/11/20242 Mins Read
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Clean Hydrogen Works (CHW) has awarded McDermott the front-end engineering and design (FEED) contract for the Ascension Clean Energy (ACE) Project, which is being jointly developed by CHW along with strategic shareholders ExxonMobil, Mitsui O.S.K. Lines, and Hafnia.

This project is located in Ascension Parish, Louisiana, and is set to play a significant role in the production of clean ammonia.

The ACE Project will initially produce 2.4 million metric tons per annum (MTPA) of clean ammonia, with plans for expansion in subsequent phases to reach 7.2 MTPA. The project includes carbon capture and sequestration (CCS) contracts with ExxonMobil, and regulatory approvals are expected by early 2025. Off-take agreements are currently in advanced discussions, with Goldman Sachs serving as the financial advisor for the project. The ACE Project is anticipated to reach its Final Investment Decision (FID) by late 2025, with production slated to commence in 2029.

Vee Godley, CHW Senior Vice President of Project Development, noted that the ACE Project is projected to create 350 new jobs, 1,500 peak construction jobs, and an additional 1,200 indirect jobs in the area.

Under the contract scope, McDermott will provide FEED services along with engineering, procurement, and construction (EPC) estimating and execution planning services. The work will be primarily conducted from McDermott’s Houston office with additional support from its Gurugram office in India.

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