Ten08 is developing an industrial-scale hybrid blue and green ammonia production and export facility on the Texas Gulf Coast with the goal of producing the lowest-cost ammonia molecule to help decarbonize the energy, shipping, fertilizer and chemical industries. The first phase, which will include production of 1.4 million tons per year of ultra-low carbon ammonia, is expected to begin operations in late 2029 / early 2030. Navigator’s $2.5 million commitment complements development capital from lead investor Attis, which made its initial investment in May of this year and is working with Navigator to fund development through to final investment decision (FID). In consideration for its initial investment, Navigator received the option to make a larger investment of up to $100 million in preferred capital to build the project’s terminal and export infrastructure at the final investment decision, with possible further investment in subsequent expansions.

Navigator and Ten08 intend to offer Ten08’s customers in Europe and Asia an integrated service that includes the production of clean ammonia in the United States combined with the international maritime transportation of the ammonia on ammonia-fueled gas carriers.

Clean ammonia can be used to decarbonize the fertilizer and chemical industries and is also a low-carbon fuel that can be used in both the energy sector and the shipping industry. In the energy sector, the development of gas turbines and engines that run on 100% ammonia is paving the way for low-carbon electricity generation from clean ammonia. This new source of ammonia demand is expected to triple current global ammonia production. The shipping sector is currently responsible for 3% of global greenhouse gas emissions and according to Lloyd’s Register, clean ammonia is expected to meet around 46% of the sector’s fuel needs by 2050. The low price of blue ammonia and its scalability make it an attractive fuel for the shipping industry to significantly reduce its greenhouse gas emissions amid mounting pressure from IMO and EU regulations.

Mads Peter Zacho, Chief Executive Officer of Navigator, stated: “This investment is another example of our commitment to growth through energy infrastructure projects and supports our existing ammonia shipping business in a meaningful way. Clean ammonia is critical to the success of the energy transition for both power generation and zero-carbon shipping, and the Ten08 project will play a critical role in advancing the clean ammonia industry. As a result of this investment, we look forward to strengthening our working relationships with numerous customers and partners around the world.”

Jean Perarnaud, CEO of Ten08, commented: “We are delighted to welcome Navigator as a strategic investor in Ten08. By partnering with Navigator, Ten08 can offer our customers an integrated solution for the delivery of clean ammonia. In addition, the maritime transport of Ten08 ammonia on ammonia-fuelled gas carriers is an integral part of our vision to become an industry leader in low-carbon production.”

Read the article online at: https://www.worldfertilizer.com/project-news/14082024/navigator-gas-and-attis-clean-energy-invest-in-ten08-energy-to-produce-clean-ammonia-on-the-us-gulf-coast-for-export/