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April 19, 2023

St. Charles Clean Fuels Proposes $4.6B Reduced-Carbon Ammonia Facility in St. Rose

St. Charles Clean Fuels, a development company jointly owned by strategic energy investment company Copenhagen Infrastructure Partners and Sustainable Fuels Group, is exploring the feasibility of building a $4.6 billion ammonia production and export facility in St. Charles Parish.

If the project moves forward as outlined, the company expects to create 216 new direct jobs with an average annual salary of more than $90,000. Louisiana Economic Development estimates 949 new indirect jobs would result, for a total of 1,165 potential new jobs in the Southeast Region. The company also estimates the project will result in 2,000 peak construction jobs.

“This potential investment from St. Charles Clean Fuels Holdings and the Copenhagen Investment Fund is extremely important,” said Michael Hecht, president & CEO of GNO, Inc.  “Not only does it represent hundreds of jobs and billions in investment, it marks a major step towards Louisiana becoming the leading clean energy state of the future for America.”

“Louisiana continues to attract the interest of new and established companies exploring major investments in the energy transition,” Gov. John Bel Edwards said. “St. Charles Clean Fuels’ commitment to lowering global levels of greenhouse gas emissions aligns with the state’s goal for net zero emissions by 2050. We look forward to seeing this project progress as part of an all-of-the-above energy strategy that is growing and diversifying our economy.”

The company envisions a facility designed to produce one of the world’s cleanest sources of ammonia, incorporating self-generated hydrogen fuel and capturing and sequestering over 90 percent of the carbon dioxide emissions produced during the ammonia manufacturing process. Reduced-carbon or “blue” ammonia is anticipated to be in high demand as a clean energy feedstock in global markets.

“St. Charles Clean Fuels is proposing to build one of the cleanest industrial projects for the new energy transition,” SCCF Project Director Ramesh Raman said. “By capturing greenhouse gases and engineering the project to consider cleaner, more efficient technologies, the company seeks to make a tangible contribution to lowering the environmental footprint for the global economy while positively benefitting the communities in which we reside.”

International-Matex Tank Terminals would lease land to SCCF at its St. Rose location on the east bank of the Mississippi River in St. Charles Parish. The New Orleans-based company would also build the storage tanks needed to hold the liquified ammonia before transportation via its existing terminal.

“International-Matex Tank Terminals is excited to provide storage and logistics services to support SCCF’s blue ammonia project,” IMTT Chairman and CEO Carlin G. Conner said. “We are proud to leverage our liquids and chemicals handling expertise to help introduce alternative clean energy sources which are vital to the global energy transition.”

The proposed site is currently undergoing a front-end engineering design (FEED) study while the company prepares permit applications. SCCF hopes to make a final investment decision in early 2024 and begin construction later that year, which would enable operations to begin in 2027.

“St. Charles Parish feeds and fuels America, and I am proud to see businesses in our parish continue to grow and develop new ways to do that,” St. Charles Parish President Matthew Jewell said. “When we can create new jobs using sustainable processes, everyone wins.”

To attract the project, the state has prepared a competitive incentive package that would include a $6 million performance-based grant for infrastructure needs as well as the full services of LED FastStart, Louisiana’s nationally acclaimed recruitment, customized training and workforce development program. The company is also expected to apply for participation in the state’s Industrial Tax Exemption and Quality Jobs programs.

“We’re grateful St. Charles Clean Fuels chose to invest in Southeast Louisiana by locating its manufacturing facility there,” Entergy Louisiana President and CEO Phillip May said. “Not only will additional capital investment and jobs benefit our communities and create opportunities for people in the area, but this project can also further sustainability goals in Louisiana and within the energy sector. For those reasons, we’re incredibly excited about partnering with SCCF and meeting its power needs.”

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