The duo on Wednesday (18th May) reached a term-sheet agreement for the proposed 12-year deal that includes two extension terms of five years each.
Nutrien’s site in focus here is soon to progress to the front-end engineering design phase, with a final investment decision expected to follow in 2023 and, if approved, full production by 2027.
Expected to have an annual production capacity of 1.2 million metric tonnes of clean ammonia, a great contribution to the North American clean energies market.
Raef Sully, Executive Vice-President of Nutrien, said, “Nutrien is optimally positioned to supply global emerging clean ammonia markets and grow a pathway for a decarbonised supply chain.”
“We are pleased to partner with Denbury on this initiative given our established track record of cooperation. It is another example of how we are building on our expertise in low-carbon ammonia to decarbonise the agriculture industry while also developing a source of clean energy.”
Chris Kendall, President and CEO of Denbury, added, “We are thrilled to expand our successful long-term partnership with Nutrien through this world class project.”
“We believe that CCUS-enabled clean ammonia will be an important source of energy in a lower-carbon future, and we are honoured by the confidence and trust that Nutrien has continued to place in Denbury to provide this important service.”
In parallel to the above, Denbury has entered into a number of agreements providing Denbury the exclusive rights to develop secure underground CO2 sequestration sites in Louisiana, Texas, and Alabama, with total potential capacity of over 1.4 billion metric tonnes.