US DOE to provide funding to Wabash Valley Resources ammonia facility in Indiana

HOUSTON (ICIS)–The US Department of Energy (DOE) has announced a conditional commitment for up to $1.559 billion to Wabash Valley Resources to help finance a commercial-scale waste-to-ammonia production facility using carbon capture and sequestration (CCS) technology.

The government funding would be part of a total investment of $2.4 billion that Wabash Valley Resources would secure for the project through private investment.

Located in West Terre Haute, Indiana, the project is being planned to produce 500,000 tonnes of anhydrous ammonia annually and permanently sequestering 1.6 million tonnes of carbon dioxide annually.

Officials said it will have the potential to be the world’s first, carbon-negative ammonia production facility and that the company would be repurposing an industrial gasifier to utilize petroleum coke.

This will be the US’ first efforts to utilize petroleum coke to produce ammonia and store the associated emissions via permanent geologic sequestration.

Wabash Valley Resources said it is their intention to demonstrate a commercially and environmentally viable end-use alternative for petroleum coke, which is a waste product generated during the oil refining process.

Officials said this project would play a critical role in securing domestic fertilizer supply for the region commonly known as the Corn Belt, contributing to both food security and climate goals.

This low-carbon ammonia would be cost-competitive compared to existing ammonia imports, helping to drive down costs for local businesses and consumers.

It was noted that while ammonia fertilizer is a crucial element of the US agricultural system, its production is a significant contributor to climate change. Globally, the manufacturing of the nutrient accounts for 1% to 2% of all carbon dioxide emissions.

Through this project, Wabash Valley Resources is striving to reduce the agricultural industry’s emissions.

In addition to its environmental benefits, the project is expected to create 500 construction jobs and 125 operations jobs.