Yara, BASF Assess Gulf Coast Low-Carbon Blue Ammonia Project

Norway's Yara and chemicals giant BASF are looking into developing and building a low-carbon blue ammonia production facility in the U.S Gulf coast region, the two companies said in a joint statement on Thursday.

The companies are planning to complete their feasibility study on the production facility by the end of this year, they said.

They are looking into the feasibility of a plant with a total capacity of 1.2 to 1.4 million tons per year, they added.

Yara, in a strategy update on Monday, said it had postponed a planned initial public offering of its Yara Clean Ammonia (YCA) business by one or two years due to an unsatisfactory market valuation.

So-called blue ammonia is produced from natural gas, with the carbon dioxide (CO2) byproduct captured and stored.

(Reporting by Louise Breusch Rasmussen; Editing by Mark Potter)