St. Charles Clean Fuels plans to build a $4.6 billion blue ammonia production facility in St. Charles Parish at the Port of South Louisiana.
Micah Cormier, director of communications for the Port of South Louisiana, said the new project aligns with three of the port’s top priorities: agriculture, infrastructure, and energy diversity.
Blue ammonia is ammonia produced using carbon capture, where almost all of the carbon emitted during the production is collected and buried deep underground. This makes for a more environmentally-friendly way to produce ammonia, a common fertilizer ingredient that plays a critical role in global food production.
“For every one ton of ammonia made the old way, there’s two tons of carbon dioxide,” said Ramesh Raman, project director of St. Charles Clean Fuels. “Blue ammonia captures 99 percent of the carbon dioxide.”
The environmental benefits of blue ammonia appealed to Port of South Louisiana officials. “We are always looking for ways to reduce our carbon footprint as the global shipping industry is becoming more sustainable,” Cormier said.
St. Charles Clean Fuels is co-owned by Copenhagen Infrastructure Partners and Sustainable Fuels Group.
The facility should help Louisiana meet goals set in the Louisiana Climate Action Plan, which was announced in 2022 and aims to reduce net greenhouse gas emissions to zero by 2050. When the project was initially announced in early 2023, then-Louisiana Governor John Bel Edwards voiced his support for the project in a press release on the Louisiana Economic Development website.
“Louisiana continues to attract the interest of new and established companies exploring major investments in the energy transition,” Gov. Edwards said. “St. Charles Clean Fuels’ commitment to lowering global levels of greenhouse gas emissions aligns with the state’s goal for net zero emissions by 2050. We look forward to seeing this project progress as part of an all-of-the-above energy strategy that is growing and diversifying our economy.”
Local business leaders also expressed support for the project. “Not only does [the blue ammonia project] represent hundreds of jobs and billions in investment, it marks a major step towards Louisiana becoming the leading clean energy state of the future for America,” Michael Hecht, president and CEO of GNO Inc., said in a press release.
Raman said the Port of South Louisiana was an attractive collaborator for their project for many reasons. “The port is instrumental to our business going forward,” Raman said. “They provide expertise and the ability to expand. It’s one of the busiest ports in the United States. It’s a natural fit for us.”
Port of South Louisiana officials also expressed excitement about the collaboration. “As the second largest energy transfer port, we know that we have the strategic geography, abundant natural resources, and skilled workforce to lead the way in the renewable energy space,” Cormier said.
Construction will likely begin in the third or fourth quarter of 2024. Raman said once construction begins, the project should take 3.5-4 years to complete. There will be an average of 800 construction workers employed each day during the building phase. Once the facility is completed, there will be about 220 full-time jobs on site. Raman said the average pay for these jobs will be $80-90,000 a year.
But the project should also have economic effects on the region beyond the on-site jobs. More full-time workers at the port means more needs for restaurants, hotels, and other businesses. “These projects have a knock-on effect for local service and support industries,” Raman said.
Cormier also expected the facility will be beneficial for area residents. “St. Charles Clean Fuels is a win-win for everyone as we look to create clean, safe and sustainable new jobs for Louisiana families,” Cormier said.
