Borealis and Agrifos to set up ammonia plant in Texas

Borealis - the Austria-based manufacturer of polyolefins, base chemicals and fertilisers - and Agrifos Partners LLC, a project development company, have reached a preliminary agreement to jointly develop a world-scale ammonia project through Gulf Coast Ammonia LLC (GCA). The plant will be located within an existing chemical site along the Texas Gulf Coast. GCA is in final negotiations with a short list of strategic site owners and expects to make a final site selection within the coming few months.
 
The brownfield, hydrogen-based project is scheduled for mechanical completion and start-up in early 2019. The site will benefit from existing infrastructure and excellent logistics capabilities which will allow product supply to a variety of long-term off-takers and customers.
 
The final agreement with Borealis, which would be subject to its Supervisory Board approval, contemplates significant equity participation by Borealis in the project. Borealis would also enter into a long-term offtake agreement for approximately 40% of the ammonia produced by the plant.
 
Markku Korvenranta, executive vice president base chemicals, Borealis, said, "We have a clear strategy of expanding our global nitrogen business. By participating in the development of, construction of and offtake from a world-scale project in the US, Borealis is able to secure long-term supplies of ammonia based on the attractive economics of US natural gas. It also is a key step in the Borealis goal to sell 10 million tonnes of nitrogen-based fertiliser products per year by 2020. Gulf Coast Ammonia's project is all the more compelling because it builds on existing site capabilities and assets along the US Gulf Coast."
 
GCA is a company formed by Agrifos Partners LLC to develop a world-scale ammonia plant along the Texas Gulf Coast. The project will utilise hydrogen and nitrogen feedstock, with pricing linked to US natural gas indexes. Agrifos has extensive experience in acquiring, developing and operating fertilizer production assets. The company expects to make further announcements in the near future concerning additional product offtake commitments, feedstock supply arrangements, permitting and construction contracts.