In Texas, a $1 billion ammonia production facility with proprietary hydrogen technology is in the works, aiming to reduce carbon emissions from coal-fired power plants, a major contributor to global CO2 emissions.
8 Rivers Capital LLC, a climate technology company supported by the SK Group, is spearheading the Cormorant Clean Energy Project in Port Arthur.
The plant is projected to generate approximately 880,000 tons of ammonia, employing exclusive oxy-combustion technology designed to capture CO2, eliminate emissions, and reduce production costs.
The project is slated to commence construction in 2025, with commercial operations expected to commence in late 2027, as outlined by Chief Operating Officer Steve Milward.
The ammonia manufactured by the facility will be auctioned in South Korea, where the fuel is given priority as a feedstock for coal-fired power plants, according to Milward.
The incorporation of ammonia into the coal production process, known as “co-firing,” aligns with the country’s decarbonization strategy. “There is going to be a very large demand for ammonia — I would say multimillion tons over the next decade into Korea,” Milward said in an interview.
Certain scientists have questioned the emissions reduction efficacy of this procedure, partially due to the potential for nitrous oxide emissions, a potent greenhouse gas, when burning ammonia.
Additionally, the combustion of low-carbon ammonia is costly, as noted by Adithya Bhashyam, an associate within BloombergNEF’s hydrogen team.
“While it’s something that has received a lot of political support in Japan and Korea, in particular, and some other Southeast Asian countries, we think the economics are really challenging,” Bhashyam said.
