OCI signed an agreement with New Fortress Energy (NFE). This partnership aims to produce green hydrogen that will empower OCI to scale up its green ammonia production capacity in Beaumont, Texas, to approximately 160,000 tons per year by 2026.
The agreement between OCI and NFE represents a significant step in the transition to green energy solutions. OCI, renowned for its ammonia and methanol production, will source green hydrogen from NFE’s ZeroParks beginning in 2025. This collaboration is the outcome of a competitive bidding process, highlighting the growing importance of green hydrogen in the energy sector.
The green hydrogen will be produced by NFE’s hydrogen business, ZeroParks, utilizing proton exchange membrane (PEM) technology. This technology is at the forefront of green hydrogen production as it enables efficient and clean hydrogen generation through electrolysis. The green hydrogen will then be delivered to OCI’s facilities in Beaumont, Texas, where it will be converted into green ammonia.
Scaling Green Ammonia Production
NFE’s green hydrogen project, ZeroPark I, will be executed in two phases, with the first phase scheduled to come online in 2025. This initial phase will enable OCI to produce approximately 80,000 tons per year of green ammonia. The second phase, set for 2026, will double OCI’s production capacity to a remarkable 160,000 tons per year.
OCI has already demonstrated its commitment to green hydrogen-based production through its Egypt Green facility, operated by Fertiglobe, a partnership between OCI Global and ADNOC. This experience positions OCI as a leader in low-carbon and renewable ammonia production. Green ammonia holds immense promise, not only as a shipping fuel but also for power generation, and in decarbonizing industries such as agriculture and manufacturing.
Moreover, green hydrogen can also be used to produce green methanol, an essential fuel choice for decarbonizing shipping and road transportation.
Complementing Blue Ammonia Production
OCI’s green hydrogen endeavors complement its large-scale blue ammonia project in Texas, developed in collaboration with Linde plc. The blue ammonia project is scheduled to commence production in 2025. Significantly, the new ammonia production site is designed to accommodate green hydrogen as a feedstock in the future, further enhancing OCI’s green ammonia production capabilities.
One of the notable advantages of OCI’s approach is its ability to scale production rapidly without significant capital expenditure. Leveraging its existing infrastructure, OCI can meet the surging demand for green hydrogen and ammonia without major financial investments. This aligns perfectly with the incentives offered under the Inflation Reduction Act’s 45V program, strengthening OCI’s position in the green energy transition.
