Sourcing Renewables - May 25, 2022
LSB Industries Launches Green Ammonia Project
Chemical manufacturer LSB Industries, Inc. announced that it entered into agreements with thyssenkrupp Uhde USA, LLC and Bloom Energy to develop a project to produce approximately 30,000 metric tons of zero carbon or “green” ammonia per year at LSB’s Pryor, Oklahoma facility.
Green ammonia is produced by extracting hydrogen from water using an electrolyzer powered by a renewable energy source, such as solar or wind. Since no natural gas or other fossil fuels are used as the feedstock to the ammonia production process, nor as the power source, the end-product has no associated carbon emissions.
Thyssenkrupp Uhde will develop the engineering design to convert a small portion of Pryor’s existing conventional or “grey” ammonia capacity into green ammonia. Pending results of the feasibility study currently underway and subsequent board approval, the project will be constructed in two phases: first with Bloom supplying a 10 MW solid oxide electrolyzer, followed by the installation of an additional 20MW alkaline electrolyzer unit, which will be sourced from a leading manufacturer. Bloom will own, operate and maintain the solid oxide electrolyzer. Once the second electrolyzer is installed and operational, Pryor will be the largest green ammonia production site in North America.
“We are very excited to partner with Bloom Energy and thyssenkrupp Uhde in taking our first step to becoming a leading supplier of zero carbon or green ammonia in a unique facility that will have two electrolyzer technologies operating side by side. We believe that being an early entrant into the green ammonia space will allow us to become a leading player as the market evolves,” said Mark Behrman, President and CEO of LSB Industries in a statement.
The green hydrogen produced from the electrolyzers as part of the ammonia production process is expected to qualify for federal incentive programs such as the production and investment tax credits currently under evaluation by Congress.
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