Evaluating existing Geismar, Louisiana site
to produce 1.2 million tonnes of clean ammonia annually
Nutrien Ltd. (TSX and NYSE: NTR) announced today that it is
evaluating Geismar, LA as the site to build the world’s largest
clean ammonia facility. Building on the company’s expertise in
low-carbon ammonia production, clean ammonia will be manufactured
using innovative technology to achieve at least a 90 percent
reduction in CO2 emissions. The project will proceed to the
front-end engineering design (FEED) phase, with a final investment
decision expected to follow in 2023. If approved, construction of
the approximately US$2 billion facility would begin in 2024 with
full production expected by 2027.
The new clean ammonia plant would leverage low-cost natural gas,
tidewater access to world markets, and high-quality carbon capture
and sequestration infrastructure at its existing Geismar, LA
facility to serve growing demand in agriculture, industrial and
emerging energy markets. The plant is expected to have an annual
production capacity of 1.2 million metric tonnes of clean ammonia
and capture at least 90 percent of CO2 emissions, permanently
sequestering more than 1.8 million metric tonnes of CO2 in
dedicated geological storage per annum. The new plant will use auto
thermal reforming technology to achieve the lowest carbon footprint
of any plant at this scale and has the potential to transition to
net-zero emissions with future modifications.
“Our commitment to the development and use of both low-carbon
and clean ammonia is prominent in our strategy to provide solutions
that will help meet the world’s decarbonization goals, while
sustainably addressing global food insecurity. Leadership in clean
ammonia production will play a key role in achieving our 2030 Scope
1 and 2 emissions reduction goals, as part of our Feeding the
Future Plan,” said Ken Seitz, Nutrien’s Interim President and
CEO.
Nutrien has signed a term sheet with Denbury Inc., a trusted
partner for nearly a decade, that would allow for expansion of the
existing volume of carbon sequestration capability in the immediate
vicinity of its Geismar facility, if selected as the final site of
construction.
“Nutrien is optimally positioned to supply global emerging clean
ammonia markets and grow a pathway for a decarbonized supply
chain,” said Raef Sully, Nutrien’s Executive Vice President and CEO
of Nitrogen and Phosphate. “We are pleased to partner with Denbury
on this initiative given our established track record of
cooperation. It is another example of how we are building on our
expertise in low-carbon ammonia to decarbonize the agriculture
industry while helping to sustainably feed and fuel the
future.”
Nutrien has also signed a Letter of Intent to collaborate with
Mitsubishi Corporation for offtake of up to 40 percent of expected
production from the plant to deliver to the Asian fuel market,
including Japan, once construction is complete.
Nutrien is committed to leading the development of low carbon
and clean ammonia to rapidly accelerate the decarbonization of
hard-to-abate sectors such as agriculture, industrial use of
ammonia, power generation, and maritime fuel. As one of the world’s
largest ammonia traders by marine transportation, Nutrien announced
in 2021 a collaboration agreement with EXMAR to jointly develop and
build one of the first low-carbon, ammonia-fueled maritime vessels
to help decarbonize shipping. Nutrien is also involved with the US
Department of Energy and other partners to explore flexible clean
ammonia production using air, water and variable renewable
electricity.
Visit our clean ammonia web page for more information.
Forward-Looking Statements
Certain statements in this news release constitute
"forward-looking information" or "forward-looking statements"
(collectively, "forward-looking statements") under applicable
securities laws including our expectations for a clean ammonia
production facility (and timing thereof), production capacity, use
of technologies, partnerships, carbon capture and sequestration,
greenhouse gas reductions and carbon footprints as well potential
for net-zero emissions, projected capital expenditures, statements
about future operating results and offtake agreements, and our
expectations for low-carbon, ammonia fueled maritime vessels.
Forward looking statements in this news release are based on
certain key expectations and assumptions made by Nutrien, many of
which are outside of our control. Although Nutrien believes that
the expectations and assumptions on which such forward looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because Nutrien can give
no assurance that they will prove to be correct. Forward looking
statements are subject to various risks and uncertainties which
could cause actual results to differ materially from the
anticipated results or expectations expressed in this news release.
For information on the assumptions made, and the risks and
uncertainties that could cause actual results to differ from the
anticipated results, refer to our reports filed with the Canadian
securities regulatory authorities and the United States Securities
and Exchange Commission.
The forward-looking statements in this news release are made as
of the date hereof and Nutrien disclaims any intention or
obligation to update or revise any forward-looking statements in
this news release, except as may be required under applicable
laws.
About Nutrien
Nutrien is the world's largest provider of crop inputs and
services, playing a critical role in helping growers increase food
production in a sustainable manner. We produce and distribute
approximately 27 million tonnes of potash, nitrogen and phosphate
products world-wide. With this capability and our leading
agriculture retail network, we are well positioned to supply the
needs of our customers. We operate with a long-term view and are
committed to working with our stakeholders as we address our
economic, environmental and social priorities. The scale and
diversity of our integrated portfolio provides a stable earnings
base, multiple avenues for growth and the opportunity to return
capital to shareholders.
About Denbury
Denbury is an independent energy company with operations and
assets focused on Carbon Capture, Use and Storage (CCUS) and
Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain
regions. For over two decades, the Company has maintained a unique
strategic focus on utilizing CO2 in its EOR operations and since
2012 has also been active in CCUS through the injection of captured
industrial-sourced CO2. The Company currently injects over four
million tons of captured industrial-sourced CO2 annually, with an
objective to fully offset its Scope 1, 2, and 3 CO2 emissions by
2030, primarily through increasing the amount of captured
industrial-sourced CO2 used in its operations. For more information
about Denbury, visit www.denbury.com.
About Mitsubishi Corporation
Mitsubishi Corporation is a global integrated business
enterprise that develops and operates businesses across virtually
every industry including natural gas, industrial materials,
petroleum & chemicals solution, mineral resources, industrial
infrastructure, automotive & mobility, food industry, consumer
industry, power solution and urban development. For more
information about Mitsubishi, visit
https://www.mitsubishicorp.com/jp/en.
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version on businesswire.com: https://www.businesswire.com/news/home/20220518006099/en/
FOR FURTHER INFORMATION:
Nutrien Investor Relations Jeff Holzman Vice
President, Investor Relations (306) 933-8545
Media Relations Megan Fielding Vice President, Brand
& Culture Communications (403) 797-3015
Contact us at: www.nutrien.com
Denbury Investor Relations Brad Whitmarsh Vice
President, Investor Relations (972) 673-2020
Beth Bierhaus Investor Relations Analyst (972) 673-2554
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