KBR Blue Ammonia Technology Selected for a Low-Carbon Project in the US Gulf Coast

Rhea-AI Summary

KBR (NYSE: KBR) selected by INPEX Corporation and LSB Industries for large-scale clean ammonia production and export project in the US Gulf Coast

Insights

Environmental Technology Analyst

The selection of KBR's blue ammonia technology by INPEX Corporation and LSB Industries represents a significant step in the energy industry's transition towards more sustainable practices. Ammonia, traditionally used as a fertilizer, is gaining attention as a potential clean energy carrier due to its high hydrogen content and ease of liquefaction, which facilitates transportation. Blue ammonia is produced by converting natural gas into hydrogen and nitrogen with carbon capture and sequestration (CCS) to reduce carbon emissions.

From an environmental technology standpoint, the commitment to a 1.1 million tonnes per annum facility underscores the scale at which companies are willing to invest in low-carbon solutions. KBR's experience in engineering and constructing over 250 grassroot ammonia plants provides a robust foundation for this project. The technology's ability to capture carbon while maximizing yields could set a new industry standard, potentially influencing future regulatory frameworks and environmental policies.

Energy Market Analyst

The clean ammonia production project is a strategic move within the energy sector that could have a ripple effect on the market. Ammonia's role as a hydrogen carrier is pivotal for the energy transition and the establishment of a large-scale production facility in the US Gulf Coast could position the region as a key hub for clean energy exports. This development could attract further investments and partnerships in the region, enhancing its economic and strategic importance within the global energy market.

Moreover, the collaboration between a Tokyo-based and an Oklahoma City-based company illustrates the cross-border interest in clean energy technologies, which could lead to increased international trade and cooperation. As the demand for low-carbon products rises, companies like KBR, INPEX and LSB Industries may see an upsurge in their market value and investor interest.

Financial Analyst

The financial implications of KBR's contract for blue ammonia technology licensing and design are multifaceted. For KBR, the project could lead to enhanced revenue streams and strengthen its position as a leader in sustainable technology solutions. Investors will likely monitor the project's progress closely, as its success could influence KBR's financial performance and stock valuation.

Furthermore, the project's alignment with global decarbonization goals may unlock potential subsidies or financial incentives, reducing the overall risk and enhancing the project's viability. Stakeholders should consider the long-term benefits of investing in clean technology, which includes potential cost savings from carbon taxes and a stronger competitive edge in a market increasingly focused on sustainability.

HOUSTON, Jan. 10, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today that its blue ammonia technology has been selected by Tokyo-based INPEX Corporation and Oklahoma City-based LSB Industries for a large, commercial-scale clean ammonia production and export project in the US Gulf Coast.

Under the terms of the contract, KBR will provide technology licensing and proprietary engineering design for a 1.1 million tonnes per annum ammonia plant, designed to capture carbon while maximizing yields.

"We are honored to work with INPEX and LSB on this strategic project to implement our market-leading low-carbon blue ammonia technology," said Doug Kelly, KBR President, Technology. "With this award, KBR continues its commitment to provide sustainable solutions that meet the evolving market needs while helping clients realize their decarbonization goals."

"KBR brings a wealth of experience, expertise and innovation to this world-scale, blue ammonia project," said Mark Behrman, LSB Industries President and CEO. "We look forward to partnering with them to achieve a successful outcome, which will further support our strategy of becoming a leader in the global energy transition through the production of low-carbon products."

"We believe that KBR's unwavering commitment to excellence and continuous improvement will enable us to achieve optimal low-carbon ammonia production with utmost efficiency, robustness and safety," said Shoichi Kaganoi, Senior Vice President, Hydrogen & CCUS Development Division of INPEX. "We are delighted to collaborate with KBR, a company that shares our values of sustainability and technological advancement, as we work together to contribute to a more sustainable and innovative future."

KBR is a world leader in ammonia technology and has been at the forefront of innovation in the ammonia industry for decades. Since 1943, KBR has licensed, engineered, or constructed over 250 grassroot ammonia plants worldwide.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 34,000 people performing diverse, complex and mission-critical roles in 33 countries.

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com    

About LSB Industries, Inc.

LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, is committed to playing a leadership role in the energy transition through the production of low and no carbon products that build, feed and power the world. The LSB team is dedicated to building a culture of excellence in customer experiences as we currently deliver essential products across the agricultural, industrial, and mining end markets and, in the future, the energy markets. The company manufactures ammonia and ammonia-related products at facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma and operates a facility for a global chemical company in Baytown, Texas. Additional information about LSB can be found on our website at www.lsbindustries.com .

About INPEX Corporation

INPEX CORPORATION is Japan's largest exploration and production (E&P) company, and is currently involved in projects across multiple continents, including the Ichthys LNG Project in Australia as Operator. By thoroughly making its oil and gas business cleaner while expanding its 5 net zero business areas, INPEX aims to provide a stable supply of diverse and clean energy sources including oil, natural gas, hydrogen/ammonia and renewables as a pioneer in energy transformation. For more information, visit https://www.inpex.co.jp/english/index.html.

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding the performance of the company's contract with INPEX and LSB and future demand for the company's technologies, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.  Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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SOURCE KBR, Inc.

FAQ

What is the latest project announced by KBR (NYSE: KBR)?

KBR has been selected by INPEX Corporation and LSB Industries for a large, commercial-scale clean ammonia production and export project in the US Gulf Coast.

What is the capacity of the ammonia plant in the latest project?

The ammonia plant is designed for a capacity of 1.1 million tonnes per annum.

What is the focus of KBR's technology for the project?

KBR's technology for the project is focused on low-carbon blue ammonia production, with the goal of capturing carbon while maximizing yields.

What is the experience of KBR in the ammonia industry?

KBR is a world leader in ammonia technology and has been at the forefront of innovation in the ammonia industry since 1943, having licensed, engineered, or constructed over 250 grassroot ammonia plants worldwide.

Who are the partners of KBR in the latest project?

INPEX Corporation and LSB Industries are the partners of KBR in the latest clean ammonia production and export project in the US Gulf Coast.