Oslo-listed product tanker unit of BW Group, Hafnia, has teamed up with energy startup Clean Hydrogen Works (CHW) to explore the development of a new large-scale ammonia and hydrogen production and export facility on the West Bank of the Mississippi River in Ascension Parish, Louisiana.<\/p>\n
A project called Ascension Clean Energy (ACE), which also includes the world\u2019s largest CO2 pipeline operator Denbury Carbon Solutions as a shareholder, is targeted to start production by late 2027, with shipments of the fuel commencing in 2028.<\/p>\n
\u201cThis marks a strategic step in shaping the future of the Hafnia transport portfolio, utilising purpose-build vessels against long standing contracts in the zero-carbon space,\u201d the company said in a statement.<\/p>\n
The partnership estimated the project would cost around $7.5bn with 7.2m metric tons of ammonia produced annually and up to 98% of CO2 released from this process captured and transported via pipeline to planned sequestration sites for deep underground permanent storage.<\/p>\n
Hafnia said additional technologies are being explored within the project which could result in \u201czero-carbon or even carbon negative hydrogen-ammonia production at the facility.\u201d<\/p>\n
Commenting on the partnership, Hafnia CEO Mikael Skov said: \u201cAs the world\u2019s leading product tanker company transporting energy worldwide, Hafnia is well-positioned to transport this clean fuel safely and efficiently to markets across the globe. We look forward to our continued collaboration with Clean Hydrogen Works (CHW) and its partners in bringing this transformational project to Louisiana \u2013 in a strategically significant initiative aligned with furthering our overall sustainability objectives.\u201d<\/p>\n
Clean Hydrogen Works said it hopes to make a final investment decision and begin construction in 2024. At the peak of construction, around 1,500 construction jobs would be created.<\/p>\n