Ineos, Hanwha mull joint US low-carbon ammonia project

Global chemical company Ineos Group Ltd. and South Korea’s Hanwha Group have teamed up to assess building a low-carbon ammonia facility in the US to meet growing global demand for the compound.

Ineos Nitriles, a unit of the British multinational conglomerate, and Hanwha Corp., the group's holding company, said on Tuesday they agreed to jointly study building a low-carbon ammonia facility using carbon sequestration in the US with a capacity of over 1 million tons a year.

The two companies are set to explore the feasibility of a facility that helps meet growing global demand for low-carbon ammonia. The final investment decision is slated for 2026 with a planned launch of commercial operation in 2030.

"Our collaboration with Ineos Nitriles 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 Corp.'s Global Division.

LOW-CARBON MATERIALS

Ineos Nitriles is the world’s leading maker of acrylonitrile, used in the production of plastics and resins. It manufactures 1.3 million tons per year at three plants — two in the US and one in Germany — according to Ineos Group's 2023 annual report.

Acrylonitrile is produced by combining ammonia, propylene and air in a process called ammoxidation.

“This project is a potentially important contributor to Ineos Nitriles’ carbon emission reduction targets for 2030 and its net zero ambitions by 2050,” said Ineos Nitriles CEO Hans Casier.

“This project would be a significant step toward a leadership position in low-carbon acrylonitrile supply, of which ammonia with low-carbon emissions is a key raw material.”

Write to Hyung-Kyu Kim at khk@hankyung.com
 
Jongwoo Cheon edited this article.