McDermott Secures FEED Contract for CHW Ammonia Project in Louisiana
Key Ideas
- McDermott secures the front-end engineering and design (FEED) contract for Clean Hydrogen Works' (CHW) ammonia project in Louisiana, aiming to deliver up to 2.4 million tonnes annually by 2029.
- The project involves collaboration with ExxonMobil, Mitsui O.S.K. Lines, and Hafnia, with potential for expansion to 7.2 million tonnes per year after 2029.
- ExxonMobil is set to provide carbon capture and sequestration (CCS) equipment, with regulatory approvals expected in 2025 and offtake discussions ongoing with Goldman Sachs.
- The project, led by Ascension Clean Energy (ACE), is projected to make a final investment decision (FID) by late 2025, with production scheduled to commence in 2029, aiming to leverage McDermott's delivery model for a modular solution.
McDermott has secured the front-end engineering and design (FEED) contract for Clean Hydrogen Works' (CHW) ammonia project in Louisiana, with the goal of producing up to 2.4 million tonnes annually by 2029. The project, spearheaded by Ascension Clean Energy (ACE) with collaboration from ExxonMobil, Mitsui O.S.K. Lines, and Hafnia, is planning to expand to 7.2 million tonnes per year after 2029. ExxonMobil will contribute carbon capture and sequestration (CCS) equipment, while regulatory approvals are anticipated in 2025, alongside ongoing offtake discussions with Goldman Sachs. The project aims to reach a final investment decision (FID) by late 2025, with production slated for 2029, utilizing McDermott's delivery model to provide a modular solution for CHW. Johnny Cook, CHW's Senior Vice-President, highlighted the strategic advantages of the project, including infrastructure access and an experienced team. McDermott's Senior Vice President, Rob Shaul, emphasized the company's capabilities in offering a value-maximizing and risk-reducing solution. The project's expansion is supported by Mitsui, a joint shareholder since 2023, aiming to promote clean hydrogen-based ammonia.
Topics
Projects
Clean Energy
Investment
Engineering
Carbon Capture
Ammonia Production
Global Expansion
Financial Advisory
Contracting
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