U.S. technology company 8 Rivers recently announced plans to invest $1.2 billion in a large-scale blue ammonia plant in Texas, the first commercial plant to use its process to produce low-cost hydrogen from fossil gases while capturing more than 99% of emissions.
8 Rivers' unique "8RH2" process uses an "oxy-fuel burner" to heat carbon dioxide, which is then processed with natural gas and steam in a CO2 convection reformer to form syngas, which is a mixture of carbon monoxide and hydrogen, which is then separated.
The carbon emissions in this process are constantly being sent**, similar to the zero-emission power generation design co-invented by Rodney Allam, the chief inventor of 8 Rivers. A small amount of CO2 exits the cycle during each run, but CO2 is easily incorporated due to pressure and purity.
8 Rivers said the process has an overall gas-to-hydrogen efficiency of more than 80 per cent, compared to 65 per cent for steam methane reforming, the most common method of producing hydrogen from ash. 8 Rivers' technology is cheaper and cleaner than traditional steam methane reforming (SMR) methods, which also release all of the CO2.
8 Rivers' Cormorant clean energy project in Texas will produce 880,000 tons of ammonia per year, which will require about 1560,000 tons of hydrogen, equivalent to about 15GW electrolyzer production capacity.
8 Rivers is still evaluating several different options for sequestering CO2.
8 Rivers chief operating officer Steve Milward said the Cormorant clean energy project is an ideal location for the first large-scale deployment of an 8RH2 commercial platform. Clean fuels like hydrogen and ammonia are critical to the energy transition, and the rich history of industrial manufacturing and transportation in the U.S. Gulf Coast region makes it the perfect environment to showcase the game-changing potential of this technology. It's great to partner with Local** to develop and deploy this project to build a clean energy workforce to sustain the region's growth for years to come."
The project will cost $1.2 billion and will be financed by partners in South Korean industrial group SK, with a final investment decision due in the first quarter of 2025, 8 Rivers said.
SK previously invested US$100 million in 8 Rivers, which included the formation of a joint venture to deploy clean hydrogen and power projects across SK's operations and across the Asia-Pacific region. Ammonia will be exported to the international market. Ammonia can be cracked into hydrogen to replace fossil fuels in ships, vehicles, power plants, and industrial facilities.
8 Rivers did not disclose the likely cost of ammonia production at the Cormorant clean energy project, but the company plans to take advantage of the tax credits provided for in the Inflation Reduction Act. Blue hydrogen producers are eligible for a 45V tax credit for clean hydrogen production, up to US$3 per kilogram, or a 45Q tax credit for CCUS. But recent analysis by the U.S. Department of Energy suggests that upstream emissions from sourcing fossil gas for these projects could push their lifecycle greenhouse gases above the minimum threshold of 45v.
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