Hanwha and INEOS Agree to Study Construction of USA Low-Carbon Ammonia Facility

May 30, 2024
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Summary

Industrial giants based in Seoul, South Korea and London, England expect to make a final investment decision in 2026 to begin commercial operation in 2030.

Hanwha and INEOS Agree to Study Construction of USA Low-Carbon Ammonia Facility

Industrial giant Hanwha Corporation, based in Seoul, South Korea and INEOS Nitriles, a division of London-based INEOS, have announced their intention to collaborate in a study for the creation of a low-carbon ammonia facility with carbon sequestration in the USA. The planned capacity of the plant, whose location is yet to be determined, is more than 1 million tonnes per annum.

The two companies agreed Heads of Terms, under which Hanwha and INEOS will together explore the feasibility of a facility to meet the growing global demand for ammonia with low-carbon emissions. The final investment decision is planned for 2026 with planned commercial operation in 2030.

"Our collaboration with INEOS Nitrites is aimed at strengthening our strategic foothold in the global ammonia market and addressing the growing worldwide demand for clean ammonia solutions," said Kiwon Yang, CEO of Hanwha Corporation. He further stated, "The production of industrial materials using clean ammonia aligns well with our commitment to key sustainability principles. This technological advancement will be a pivotal turning point in realizing Hanwha's vision for a sustainable future."

According to Wikipedia, Hanwha Group is a large business conglomerate founded in 1952 as Korea Explosives Co. The group has grown into a large multi-profile business conglomerate, with diversified holdings ranging from explosives to energy, materials, aerospace, mechatronics, finance, retail, and lifestyle services.

Said 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. This project 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. INEOS positions itself to find solutions to the challenges the world is facing and is looking forward to achieving a net zero economy whilst both continuing to deliver products that are essential to society and remaining competitive.”

London-based INEOS is one of the world's largest chemical producers and a significant player in the oil and gas market. The company operates 36 individual business units covering the chemical and oil & gas industries, together with a number of consumer brands. Their chemical businesses are combined into a number of larger financial groups including INEOS Group, INEOS Styrolution, INOVYN and INEOS Enterprises.

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