OSLO, Norway/LUDWIGSHAFEN, Germany - Yara International and BASF Group have agreed to build a world-scale ammonia plant at BASF's site in Freeport, TX. The plant will use hydrogen as raw material, reducing capital expenditures, 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 United States. 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," said Wayne T. Smith, member of the Board of Executive Directors of BASF SE, responsible for the Chemicals segment.
The ammonia plant will be owned 68% by Yara and 32% by BASF and will be located on BASF's site in Freeport. The plant will 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. Yara will also build an ammonia tank at the BASF terminal, bringing Yara's total investment to $490 million. BASF will also upgrade its current terminal and pipeline assets.
Completion of the plant is expected by the end of 2017. Yara will manage construction of the plant, while BASF will operate the plant and the export terminal.