2023-06-29 10:51:21 ET
Chemicals giant BASF ( OTCQX:BASFY ) and Norway's Yara ( OTCPK:YARIY ) said Thursday they are studying the development and construction of a low-carbon blue ammonia production facility with carbon capture in the U.S. Gulf Coast region.
The companies said they are looking into the feasibility of a plant with a total capacity of 1.2M-1.4M tons/year, and 95% of the carbon dioxide generated from the production process would be captured and permanently stored in the ground.
The companies plan to complete the feasibility study by end of 2023.
BASF ( OTCQX:BASFY ) and Yara ( OTCPK:YARIY ) are longstanding collaboration partners and currently operate a large joint ammonia plant at BASF's site in Freeport, Texas.
Earlier this week, Yara ( OTCPK:YARIY ) said it had postponed a planned IPO of its Yara Clean Ammonia business by 1-2 years due to an unsatisfactory market valuation.
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- Stock price target: Down 7.5% YTD, up 6.5% in the past 12 months
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BASF, Yara weigh low-carbon blue ammonia project on U.S. Gulf Coast