The US Department of Energy (DOE) announced that it has made a conditional commitment to Wabash Valley Resources for a loan guarantee of $1.5 billion.
The funding allocated through the DOE’s Loan Programs Office (LPO) upon fulfilling certain criteria will be diverted towards repurposing an industrial gasifier.
The industrial gasifier uses petroleum coke to produce anhydrous ammonia, which is vital in the manufacture of fertilisers.
In addition, the funding will help equip the facility with technology that will enable the capture and sequestration of 1.6 million metric tonnes of CO2 per year.
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The $1.5B conditional loan commitment comes from the Biden-Harris Administration’s Investing in America program and represents part of a $2.4 billion fund that Wabash Valley Resources would secure through private investment.
With financial backing from the LPO, Wabash Valley Resources plans to build a facility in West Terre Haute, Indiana, which is anticipated to create more than 1,100 direct and indirect jobs in the local area.
The US State of Indiana is home to many retired coal-fired plants. It has undergone significant changes in its industrial landscape, which has created a decline in employment opportunities for local communities.
This initiative aims to establish the world’s first carbon-negative ammonia production plant and serve as a domestic fertilizer source, crucial for agricultural operations in the Corn Belt region.
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Designed as a commercial-scale production site, the facility will have the capacity to generate 500,000 metric tons of anhydrous ammonia annually.
As part of their loan commitment, Wabash Valley Resources is obligated to create a Community Benefits Plan (CBP).
Their strategy focuses on offering certification programs for job seekers and training opportunities in partnership with institutions such as the Rose-Hulman Institute of Technology, Indiana State University, Saint Mary-of-the-Woods College, and Ivy Tech Community College.