Denbury in CO2 transport and storage deal for clean hydrogen-ammonia complex

Clean Hydrogen Works and Denbury have signed a CO2 Services Agreement. The hydrogen-ammonia complex that Clean Hydrogen intends to build in Ascension Parish, Louisiana, and which is expected to be constructed less than two miles from Denbury’s current CO2 pipeline network, will transport and sequester CO2 under the terms of the binding agreement.

Two large-scale ammonia blocks are anticipated to be part of the Ascension Clean Energy (“ACE”) clean hydrogen-ammonia complex, which is expected to produce 7.2 million tons of ammonia annually. A letter of intent and offtake agreements with reputable buyers support about 75% of the anticipated ammonia output capacity.

The proposed facilities are to be built on a 1,700-acre site near Donaldsonville, Louisiana, which is ideally situated for exports on the west bank of the Mississippi River. Currently, it is predicted that the two ammonia blocks will begin operation in stages, with Block 1 production expected to start in 2027. The project will likely receive a final investment decision around 2024.

The ACE project is anticipated to boost the Louisiana economy by creating up to 350 permanent jobs and 1,500 peak construction jobs. Denbury and Clean Hydrogen have been engaging with local and state regulatory officials, as well as community stakeholders, as part of the project planning process to give an outline of the economic and environmental advantages of the proposed facilities and carbon capture and storage operations.

When the CO2 emissions that would normally be released into the atmosphere during the production of ammonia are instead caught, transported, and permanently stored underground in safe geologic formations, “blue” ammonia is the outcome. Due to its hydrogen concentration and the fact that it doesn’t release carbon when burned, “blue” ammonia will increasingly be in demand as a decarbonized energy source for hard-to-abate sectors.