BASF Group and Yara International recently announced they have agreed to build a world-scale ammonia plant at BASF’s Freeport, Texas, site. The plant will use hydrogen as raw material, reducing capital expenditures (capex), maintenance, and carbon dioxide emissions significantly.

“Through the joint investment with Yara, we can take advantage of world-scale production economics and the attractive raw material costs in the U.S.,” said Wayne T. Smith, member of the Board of Executive Directors of BASF SE, responsible for the Chemicals segment. “We will thus strengthen our Freeport Verbund and the competitiveness of our polyamide 6 value chain in the region. We look forward to a successful partnership with Yara.”

The ammonia plant will be 68% owned by Yara and 32% by BASF. The plant will reportedly have a capacity of about 750,000 metric tons per year. Each party will off-take ammonia from the plant in accordance with its equity share. Total capital investment for the plant is estimated at $600 million. In addition, Yara will reportedly build an ammonia tank at the BASF terminal, bringing Yara’s total investment to $490 million. In addition, BASF will upgrade its current terminal and pipeline assets.

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