Page 14 - NorthAmOil Week 14 2023

NorthAmOil ENERGY TRANSITION NorthAmOil

Yara, Enbridge plan $2.9bn blue

ammonia plant in Texas

TEXAS YARA Clean Ammonia and Enbridge have said Calgary-based Enbridge and Yara will use
they will jointly develop and construct a $2.9bn what they said are complementary strengths to
low-carbon blue ammonia production facility in develop and execute the project.
Texas. Yara said it has industry-leading experience
The proposed facility, which includes auto- in ammonia development, production, oper-
thermal reforming with carbon capture, will be ations and distribution, and that Enbridge has
The proposed facility located at the Enbridge Ingleside Energy Center large-scale infrastructure development expertise
would be located at (EIEC) near Corpus Christi, Texas. and the world-class EIEC deep water docks and
the Enbridge Ingleside Yara, the world’s largest ammonia distributor, export platform.
Energy Center in Texas. will contract full offtake from the facility. This will be critical to advancing the project
Blue ammonia is made from nitrogen and from development through to commercial oper-
blue hydrogen, which is made from gas feed- ation, said Yara.
stocks, with the carbon dioxide (CO2) by-prod- Enbridge’s Texas Eastern Transmission Pipe-
uct from the hydrogen production captured and line is expected to provide the transportation
stored. service for feed gas to be used for the production
Clean ammonia uses include shipping process.
fuel, power production and serving as a A nearby CO2 sequestration hub is being
hydrogen carrier. Norway-based Yara said advanced by Enbridge and Occidental Petro-
that global demand for low-carbon ammonia leum subsidiary Oxy Low Carbon Ventures. It is
is growing. a potential destination for the project’s captured
The production facility will be self-powered CO2, said the companies.
with solar energy. Once operational, it will be “We are excited to partner with Yara and col-
capable of supplying low-carbon ammonia, with laborate on this clean energy project, especially
an expected capacity of 1.2-1.4mn tons (1.1-1.3 given their expertise in global ammonia projects,
tonnes) per year. operations and distribution,” said Enbridge’s
Around 95% of the CO2 generated from the executive vice president and president of liquids
production process will be captured and trans- pipelines, Colin Gruending.
ported to nearby permanent geologic storage. “EIEC is well-positioned to become the most
Total project investment is expected to be $2.6- sustainable export terminal in North America
2.9bn, with production start-up anticipated in through low-carbon fuel production, carbon
2027-28. capture and solar self-power,” he said.™

NEWS IN BRIEF

UPSTREAM than $100mn in capital commitments, from the Fund alongside Tailwater. “We are excited
new and existing limited partners. to add minerals and royalties to Tailwater’s
Tailwater Royalties Royalties was formed to help deepen growing non-operated and operated
Launched in January 2022, Tailwater
franchises. These platforms along with our
announces fund close Tailwater’s upstream footprint with a energy and growth infrastructure strategies
focus on the acquisition of minerals and
will continue to build upon Tailwater’s full
over $100mn and royalties across multiple basins throughout immersion approach, exemplifying creative
North America. Tailwater Royalties is also
and long-term investment opportunities.”
initial acquisitions of concurrently announcing the acquisition of of our team’s deep expertise in a variety of
“Tailwater Royalties is an ideal example
1,877 net royalty acres across the Permian,
approximately 1,900 net Eagle Ford and Haynesville under high quality energy investment strategies,” said Edward
operators.
Herring, co-founder and managing partner of
royalty acres and existing investors, we are thrilled to have Tailwater. “As we put this capital to work, we
“Thanks to the strong support from new
expect to see continued success as our team
Tailwater Royalties Fund, an affiliate of the surpassed our target fundraising goal for grows and develops diversified positions and
Texas-based private equity firm Tailwater Tailwater Royalties,” said Doug Prieto, CEO balanced portfolios within the energy space.”
Capital, today announced that it closed its of Tailwater E&P, a cross-disciplined team of TAILWATER CAPITAL, April 05, 2023
fund over target on March 1, 2023, with more energy investment professionals that manages

P14 www. NEWSBASE .com Week 14 06•April•2023