Are Hanwha & INEOS on Brink of Big Low-Carbon Ammonia Deal?
Chemicals giants Hanwha and INEOS Nitriles have announced their intention to collaborate on a study for a low-carbon ammonia facility with carbon sequestration in the USA.
The plant’s location is yet to be decided but, if the project goes forward, it could have a capacity of more than 1 million tonnes per year.
The companies have agreed heads of terms, agreeing to explore the feasibility of a “facility to meet the growing global demand for ammonia with low-carbon emissions”.
They are set to make a final investment decision in 2026, with planned commercial operation in 2030.
What the leaders are saying
Kiwon Yang, CEO of Hanwha Corporation calls the development “pivotal”.
He said: “Our collaboration with INEOS Nitriles is aimed at strengthening our strategic foothold in the global ammonia market and addressing the growing worldwide demand for clean ammonia solutions.
“The production of industrial materials using clean ammonia aligns well with our commitment to key sustainability principles.”
He added: “This technological advancement will be a pivotal turning point in realising Hanwha's vision for a sustainable future."
Hans Casier, CEO of INEOS Nitriles, said: “This project is a potentially important contributor to INEOS Nitriles’ carbon emission reduction targets in 2030 and its net zero ambitions by 2050.
“It would be a significant step towards a leadership position in low-carbon acrylonitrile supply, of which ammonia with low-carbon emissions is a key raw material.”
He added: “INEOS positions itself to find solutions to the challenges the world is facing and is looking forward to achieving a net zero economy while continuing to deliver products that are essential to society and remaining competitive.”
What is low-carbon ammonia?
Ammonia is used in industrial processes including the production of fertilisers, chemicals and explosives.
Traditional grey ammonia production is energy-intensive, leading to rising demand for green alternatives.
They include:
Green ammonia – Produced with the help of renewable energy sources, including wind, solar, bioenergy or hydroelectric power. Alternatively, where biomass is used as a feedstock, the biomass is converted into a syngas using and the hydrogen is separated and used to produce ammonia
Blue ammonia – The carbon dioxide produced during the ammonia production process using fossil fuels is captured and stored underground or repurposed for other applications
Pink/yellow ammonia – Nuclear power is used as a source of energy for the electrolysis of water to produce hydrogen gas.
Turquoise ammonia – Ammonia is produced using methane pyrolysis, where methane is broken down into hydrogen gas and solid carbon using high temperatures in the absence of oxygen. The hydrogen gas is then combined with nitrogen gas to produce ammonia.
About Hanwha
Hanwha was formed in 1952 as Korea Explosives Co. and for 11 years it produced industrial explosives for the domestic market.
Over the years it has expanded in countless directions, forming Korea Hwasung Industrial Co. (now Hanwha Solutions) to enter the petrochemical market in the mid-60s.
It founded Kyung-in Energy in 1969 and Hankook Precision Tools (now Hanwha Corporation) in 1971.
In the 1980s it expanded into the resorts and leisure industry by acquiring the Junga group (now Hanwha Hotels & Resorts) and Hanyang Stores (now Hanwha Galleria).
It changed its name to Hanwha in 1992 and over the following years it founded Hanwha BASF Urethane, Hanwha NSK Precision, Hanwha GKN, Hanwha Machinery Hub Eye Bearings, SKF Hanwha Auto Parts and Hanwha Motors.
Its LinkedIn page says: “From sustainable energy and eco-friendly materials to cutting-edge aerospace solutions and smart financial services, Hanwha is committed to improving society by providing pragmatic solutions to real-world challenges.
“At Hanwha, a relentless commitment to sustainability drives our bold innovation, allowing us to build transformative solutions for individuals, society and the planet.”
About INEOS Nitriles
INEOS Nitriles is an arm of INEOS, which is owned by Sir Jim Ratcliffe, who has a 25% stake in Manchester United FC.
It is the world’s largest producer of acrylonitrile and acetonitrile, which is the key ingredient in acrylic fibre used to make clothing and carpets.
ABS (Acrylonitrile-butadiene-styrene), a durable thermoplastic, is used in automobile components, telephones, computer casings and sports equipment. Nitrile rubber is used to manufacture a multitude of products including hoses for pumping fuel.
INEOS Nitriles has 900 employees, working at sites in Green Lake, Texas and Lima, Ohio, and Koln in Germany.
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