The German chemical giant BASF and Norwegian fertilizer producer Yara have called off their joint project to build a production facility for low-carbon ammonia in the United States.
The companies announced the decision on Tuesday, citing a desire to focus on projects with higher value creation potential. The original aim of the venture was to capitalize on the rising demand for more climate-friendly products.
In June 2023, the two partners had revealed plans to explore the construction of a production plant on the US Gulf Coast. The proposed facility was expected to have a capacity of 1.2 to 1.4 million tons per year. Approximately 95% of the carbon dioxide (CO2) generated during production was to be captured and permanently stored underground. Ammonia is used in the production of various chemicals, fertilizers, and explosives, and its manufacturing process is highly energy-intensive and associated with significant CO2 emissions.
Yara intends to continue with its ammonia strategy and will explore further investment opportunities in the US. However, BASF and Yara remain partners and will continue to jointly operate a large ammonia plant at BASF's site in Freeport, Texas. BASF also produces ammonia at its European sites in Ludwigshafen and Antwerp.
(Reporting by Patricia Weiß, edited by Ralf Banser. For inquiries, please contact our newsroom at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
