Hanwha and INEOS to develop low-carbon ammonia facility in U.S.A.
Photo courtesy of INEOS

Hanwha and INEOS to develop low-carbon ammonia facility in U.S.A.

Hanwha Corporation, a leading South Korean conglomerate, and INEOS, a global chemical company based in the UK, have signed a Heads of Terms agreement to explore the development of a low-carbon ammonia production facility in the United States. This initiative aims to significantly reduce carbon emissions and support the global transition to cleaner energy.

The proposed plant aims to produce more than one million tonnes of ammonia annually, leveraging carbon sequestration technology to minimise emissions. The location of the plant is yet to be determined. The final investment decision is planned for 2026 with commercial operation in 2030.

The proposed facility will leverage cutting-edge technologies to produce ammonia with a reduced carbon footprint. Ammonia is a crucial component in various industries, including agriculture and manufacturing, and its production traditionally involves high levels of carbon emissions. By incorporating advanced methods, Hanwha and INEOS aim to set a new standard in sustainable chemical production.

Hans Casier, CEO of INEOS Nitriles, emphasised the project’s role in helping INEOS meet its carbon reduction targets for 2030 and its net zero ambitions for 2050. He stated, “This project is a potentially important contributor to INEOS Nitriles’ carbon emission reduction targets in 2030 and its net zero ambitions by 2050.”

INEOS Nitriles, a division of INEOS, is a leading producer of acrylonitrile. Acrylonitrile is a key raw material used in the production of acrylic fibers, plastics, and synthetic rubber. INEOS Nitriles operates manufacturing plants and supplies acrylonitrile and its derivatives to various industries worldwide, including automotive, textiles, and construction.

Kiwon Yang, CEO of Hanwha Corporation, highlighted the partnership’s strategic importance. “This technological advancement will be a pivotal turning point in realising Hanwha’s vision for a sustainable future,” he said, noting that the production of industrial materials using clean ammonia aligns with Hanwha’s sustainability goals.

This joint venture underscores both companies’ commitment to leading the way in low-carbon industrial solutions and addressing the pressing need for sustainable practices in the ammonia market.