Partnership with Bloom Energy and
thyssenkrupp Uhde to Produce Approximately 30,000 Metric Tons of
Zero Carbon Ammonia Per Year at LSB’s Pryor Facility
LSB Industries, Inc. (“LSB” or “the Company”), (NYSE: LXU),
today announced that it entered into agreements with thyssenkrupp
Uhde USA, LLC (“thyssenkrupp Uhde”) and Bloom Energy (“Bloom”),
(NYSE:BE) 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 (“Pryor”). 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 megawatt (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 that, once in
operation, will be the largest of its kind in the world. 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,”
stated Mark Behrman, President, and Chief Executive Officer of LSB
Industries. “This project is very important for LSB and our
partners because, in addition to its initial environmental benefit,
it provides a learning opportunity. With two electrolyzer
technologies working together in a real-world application, we can
learn how to effectively develop projects and operate facilities in
this exciting new environment. We view this project as our first
critical step in becoming a major facilitator and participant in
the green ammonia market of the future.”
“This project highlights the value that strategic collaborations
and industry-leading innovation can bring to lead advancements in
decarbonizing today’s energy system,” said Rick Beuttel, vice
president of Bloom Energy’s hydrogen business. “With a focus on
providing highly efficient and low-cost green hydrogen at scale,
we’re proud to partner with LSB to accelerate the adoption of this
clean, carbon-free fuel.”
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.
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural,
mining, and industrial markets. The Company owns and operates
facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor,
Oklahoma, and operates a facility for a global chemical company in
Baytown, Texas. LSB’s products are sold through distributors and
directly to end customers primarily throughout the United States.
Committed to improving the world by setting goals that will reduce
our environmental impact on the planet and improve the quality of
life for all of its people, the Company is well positioned to play
a key role in the reduction of global carbon emissions through its
planned carbon capture and sequestration, and zero carbon ammonia
strategies. Additional information about LSB can be found on its
website at www.lsbindustries.com.
About Bloom Energy
Bloom Energy empowers businesses and communities to responsibly
take charge of their energy. The company’s leading solid oxide
platform for distributed generation of electricity and hydrogen is
changing the future of energy. Fortune 100 companies around the
world turn to Bloom Energy as a trusted partner to deliver lower
carbon energy today and a net-zero future. For more information,
visit www.bloomenergy.com.
About thyssenkrupp Uhde USA, LLC.
thyssenkrupp Uhde USA, based in Houston, Texas, is a leading
engineering, procurement and construction services provider for the
North American chemical and fertilizer industry. The company offers
market leading technologies from thyssenkrupp Uhde, Germany
together with local EPC competence from a single source and
complete value chains for green and blue ammonia, methanol, SNG,
nitrous oxide abatement, and more. Their purpose statement "We
create a livable planet" reflects the ambition to be a driving
force in the sustainable transformation of the global industrial
landscape.
Forward-Looking Statements
Statements in this release that are not historical are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, may include projections of
our future financial performance including the effects of the
COVID-19 pandemic and anticipated performance based on our growth
and other strategies and anticipated trends in our business. These
statements are only predictions based on our current expectations
and projections about future events. There are important factors
that could cause our actual results, level of activity, performance
or actual achievements to differ materially from the results, level
of activity, performance or anticipated achievements expressed or
implied by the forward-looking statements. Significant risks and
uncertainties may relate to, but are not limited to, business and
market disruptions related to the COVID-19 pandemic, market
conditions and price volatility for our products and feedstocks, as
well as global and regional economic downturns, including as a
result of the COVID-19 pandemic, that adversely affect the demand
for our end-use products; disruptions in production at our
manufacturing facilities; our ability to complete the preferred
stock exchange transaction on the terms disclosed or at all and
other financial, economic, competitive, environmental, political,
legal and regulatory factors. These and other risk factors are
discussed in the Company’s filings with the Securities and Exchange
Commission (SEC).
Moreover, we operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible for our management to predict all risks and
uncertainties, nor can management assess the impact of all factors
on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance or achievements. Neither we nor any
other person assumes responsibility for the accuracy or
completeness of any of these forward-looking statements. You should
not rely upon forward-looking statements as predictions of future
events. Unless otherwise required by applicable laws, we undertake
no obligation to update or revise any forward-looking statements,
whether because of new information or future developments.
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version on businesswire.com: https://www.businesswire.com/news/home/20220525005360/en/
Investor Contacts: Fred Buonocore, CFA, Vice President of
Investor Relations (405) 510-3550 fbuonocore@lsbindustries.com
Media Contact: David Kimmel, Director of Communications
(405) 815-4645 dkimmel@lsbindustries.com
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