DL E&C makes its first entry into the Canadian blue ammonia market.
DATE 2024.11.21
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DL E&C makes its first entry into the Canadian blue ammonia market.
(from left) Tamara Mawhinney, Canadian Ambassador to the Republic of Korea, and Jason Mann,
CEO of Genesis Fertilizers and Jae-Ho Yoo, CEO of DL E&C, pose for a commemorative photo after signing a contract for the fertilizer plant project on the 20th.
CEO of Genesis Fertilizers and Jae-Ho Yoo, CEO of DL E&C, pose for a commemorative photo after signing a contract for the fertilizer plant project on the 20th.
- Utilize carbon-free ‘blue ammonia’ to produce 1.05 million tons of eco-friendly fertilizer per year.
- ‘Permanent underground storage’ of 700,000 tons of captured carbon per year – advantageous for wining order for EPC worth KRW2.8 trillion
DL E&C’s participation in the Canadian fertilizer plant project gained a foothold for spearheading into the North American blue (clean) ammonia market.
DL E&C announced on the 21st that it had entered into a contract with Canadian fertilizer company, Genesis Fertilizers, at the Embassy of Canada to the Republic of Korea, in Seoul to perform design and technology licensing service for a fertilizer plant project. DL E&C will undertake FEED (Front End Engineering Design), and Carbonco, a subsidiary specializing in CCUS (Carbon Capture, Utilization and Storage) technology, will provide a license for the CCUS technology. This contract marks DL E&C’s first entry into the Canadian market.
The signing ceremony was attended by Jae-Ho Yoo, head of DL E&C’s Plant Business Division, Sang-Min Lee, CEO of Carbonco, Jason Man, CEO of Genesis Fertilizers, and Tamara Mawhinney, Ambassador of Canada to the Republic of Korea.
This project is to construct a plant in Belle Plaine, south-central Saskatchewan, Canada, that will process 1,500 tons of blue ammonia per day to produce fertilizer. Once completed, the plant will produce approximately 1.05 million tons of fertilizer per year. The total contract price is USD35 million (about KRW48.671 billion), and the project is scheduled to be completed by 2026.
Carbonco’s CCUS technology will be applied to this plant. Carbonco and Genesis Fertilizers entered into a LOA (Letter of Acceptance) related to the project in September, and have been discussing details, including the sale of capture and storage. This is the first time that a domestic company exports CCUS technology to a large-scale overseas project.
Ammonia, a key raw material for fertilizer, is extracted from natural gas, and a huge amount of carbon dioxide is emitted in the process. Carbonco captures about 700,000 tons of carbon dioxide per year based on the amine* family of absorbent, a highly technology capable of large-scale carbon capture. The captured carbon dioxide is sent via pipelines to an underground storage facility about 10 km away for permanent storage. This is a process that produces the carbon-free blue ammonia, while also produces eco-friendly fertilizers using it as a raw material.
This contract gives DL E&C the increased potential to win the main project worth a total of USD2 billion (approximately KRW2.78 trillion). Genesis Fertilizers plans to place an order for the subsequent project in the form of EPC (Engineering, Procurement and Construction) after completing the 14-month FEED.
As North American countries, including the United States and Canada, have announced policies to support eco-friendly projects one after another, new orders for related plants are also expanding. In particular, the fertilizer plant of Genesis Fertilizers became eligible for tax deduction under Bill C-59 announced by the Canadian government in June, which was a favorable factor. Investment in the eco-friendly sector is also active. According to GSIA (Global Sustainable Investment Alliance), the investments in eco-friendly sector in North America in 2020 was USD19.5 trillion (approximately KRW20.00072 quadrillion), accounting for about 55% of the global investment (USD35.3 trillion).
Jae-Ho Yoo, head of DL E&C’s Plant Business Division, said, “Canada is rich in resources, including natural gas, and is expected to continue to place orders for large-scale plant project. We will successfully complete this FEED, and further strengthen our position in the North American market.”
Sang-Min Lee, CEO of Carbonco, said, “Cabonco’s technology will increase the productivity of carbon dioxide capture and enable large-scale capture. This large-scale project serves as a good opportunity to publicize the excellence and competitiveness of domestic technology in the global CCUS market.”
* Amine: A type of nitrogen-based organic compound. Amine is a basic substance, has the property of binding to acidic carbon dioxide, capturing carbon dioxide in the absorber.
Photo caption: (from left) Tamara Mawhinney, Canadian Ambassador to the Republic of Korea, and Jason Mann, CEO of Genesis Fertilizers and Jae-Ho Yoo, CEO of DL E&C, pose for a commemorative photo after signing a contract for the fertilizer plant project on the 20th.
