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Enbridge (ENB), Yara to Co-build Texas Blue Ammonia Facility

Enbridge Inc. (ENB) and Yara Clean Ammonia, a subsidiary of Yara International ASA (YARIY) recently declared that they have signed a letter of intent to jointly develop a world-class low-carbon blue ammonia production facility. The Enbridge Ingleside Energy Center (EIEC), which is near Corpus Christi, TX, will house the proposed facility that includes autothermal reforming with carbon capture.

With a projected production capacity of 1.2-1.4 million tons per year, the facility will be able to meet the rising global demand for low-carbon ammonia. Approximately 95% of the carbon dioxide produced during the production is anticipated to be captured and transferred to a nearby permanent geologic storage.

Production is anticipated to begin in 2027 or 2028 if confirmed through the Front-end Engineering Design phase. The overall project expenditure is anticipated in the $2.6-$2.9 billion range.

Yara's industry-leading experience in ammonia development, production, operations and distribution, coupled with Enbridge's large-scale infrastructure development expertise, world-class EIEC deep water docks and export platform, will be crucial in advancing the project from development to commercial operation. Additionally, Yara, the world's biggest distributor of ammonia, is expected to fully offtake the facility. This, in turn, will further enhance the project’s strategic value and commercial viability.

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Feedgas for the manufacturing process will be transported by Enbridge's Texas Eastern Transmission Pipeline. Enbridge and Oxy Low Carbon Ventures are developing a nearby CO2 sequestration center as a potential home for the project's collected CO2.

Zacks Rank & Key Picks

Currently, Enbridge carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks for investors interested in the energy sector are CVR Energy CVI and Par Pacific Holdings Inc. PARR, both sporting a Zacks Rank #1.

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.

Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 barrels per day of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, the company owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, PARR has witnessed an upward revision in earnings estimates for 2023 and 2024.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Enbridge Inc (ENB) : Free Stock Analysis Report

CVR Energy Inc. (CVI) : Free Stock Analysis Report

Yara International ASA (YARIY) : Free Stock Analysis Report

Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report

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Zacks Investment Research