howdy, partner

2 Houston energy companies team up for low-carbon ammonia initiative

KBR and Air Liquide are combining their efforts to advance the energy transition. Photo via airliquide.com

Two companies with large presences in Houston have partnered to provide low-carbon ammonia to customers.

Houston-based KBR (NYSE: KBR), an engineering services company, and Air Liquide, a have announced a large-scale low-carbon ammonia partnership that will offer KBR customers a more sustainable option through Autothermal Reforming (ATR) technology.

As far as the collaborative partnership goes, KBR brings its ammonia synthesis technology to the table while Air Liquide has significant experience with ATR for large scale syngas production applications.

"Our differentiated ammonia synthesis technology has been the preferred choice for decades, with complete solutions for blue and green ammonia and large-scale capacity ...," says Doug Kelly, KBR president of technology, in a news release. "The addition of ATR technology further complements our clean ammonia offerings as we work to advance technology solutions to decarbonize the world."

Michael J. Graff, executive vice president of Air Liquide Group, which has its United States headquarters in Houston, says in the release that the combined efforts will help move the sector on its its low-carbon transition. When paired with carbon capture, the new partnered solution will result in preventing 99 percent of carbon emissions, per the release.

"This further illustrates Air Liquide's commitment to sustainable development, supporting customers in industry and mobility to decarbonize their products and operations," he says. "This is a core element of our ADVANCE strategic plan, which inseparably links financial and extra financial performance."

According to the company, KBR holds about half of the market share of licensed capacity within ammonia technology, and has "has licensed, engineered, or constructed over 250 grassroot ammonia plants worldwide" since 1943.

In the future, Air Liquide and KBR have plans to contribute development of low-carbon hydrogen as a key enabler of the energy transition.

Trending News

A View From HETI

ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call that the company is "concerned about the development of a broader market" for its low-carbon hydrogen plant in Baytown. Photo via exxonmobil.com

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

Trending News