MOL participates in large-scale clean hydrogen-ammonia project in Louisiana Ship’s crew

Mitsui OSK Lines (MOL), one of the world’s leading shipping companies, is the latest shareholder in a proposed large-scale clean hydrogen ammonia production and export facility under development in Ascension Parish, Louisiana, on the US Gulf Coast.

Known as the Ascension Clean Energy Project, the facility is expected to produce 7.2 million tonnes of clean hydrogen-ammonia annually, helping to meet increasing demand for affordable, safe and low-carbon fuels and feedstocks around the world. This clean fuel is used to decarbonize sectors that are difficult to reduce, such as power generation, maritime shipping, heavy transport, steel processing and industrial applications.

MOL is participating in the project through its US-based subsidiary MOL Clean Energy (MCE). Other shareholders include majority shareholder Clean Hydrogen Works (CHW), as well as Denbury Carbon Solutions and Hafnia, a leading tanker company.

“Clean hydrogen-ammonia is critical to decarbonizing the global energy market. With this innovative project, MOL not only invests in our future growth, but also encourages the development and adoption of clean hydrogen-ammonia across our fleet and customer base,” said Tomoaki Ichida, CEO of MCE.

As one of the world’s largest shipping companies, MOL is well positioned to help develop solutions to ship ACE’s clean hydrogen-ammonia to emerging clean energy markets around the world.

The $7.5 billion project is expected to create approximately 1,500 construction jobs over five years and 350 permanent, full-time jobs when fully operational. The project will also create an additional 626 jobs in Ascension Parish and generate nearly $2.2 billion in new revenue at businesses across Louisiana.

The facility is planned on a 1,700-acre site on the west bank of the Mississippi River in Donaldsonville, Louisiana. It will use carbon capture and sequestration processes to reduce emissions and produce “blue ammonia,” a product that is expected to be in high demand in global markets as a clean energy feedstock.

ACE strives to achieve one of the world’s lowest lifecycle carbon intensities by capturing up to 98 percent of CO2 emissions from its processes and actively managing upstream CO2 and methane emissions.

“MOL’s practical yet visionary approach to decarbonization will add critical capabilities and insights to help ACE fulfill its mission to provide customers with affordable and large-scale clean energy solutions,” said Mitch Silver, CHW’s senior vice president and chief operating officer.

Clean Hydrogen Works hopes to make a final investment decision and begin construction in 2024, which would allow the first phase of production to begin in 2027.

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