McDermott Wins FEED Contract for CHW’s US Ammonia Project

Wedoany.com Report-Nov 22, McDermott has secured the front-end engineering and design (FEED) contract for Clean Hydrogen Works’ (CHW) ammonia project, which aims to deliver up to 2.4 million tonnes of the hydrogen derivative annually by 2029.

Under the contract, McDermott will provide FEED and engineering, procurement and construction (EPC) estimating and execution services to Ascension Clean Energy (ACE), which will be spearheaded from the firm’s Houston, Texas, and Indian offices.

Being jointly developed by CHW, ExxonMobil, Mitsui O.S.K. Lines and Hafnia, the Louisiana plant could expand to 7.2 million tonnes per year of ammonia in subsequent phases after 2029.

With ExxonMobil set to provide carbon capture and sequestration (CCS) equipment, regulatory approvals for the project are expected in 2025 and offtake discussions are currently undergoing with Goldman Sachs as financial advisor.

H2 View understands that the ACE project will reach a final investment decision (FID) by late 2025, ahead of the first production in 2029.

Johnny Cook, CHW Senior Vice-President of Engineering, Procurement and Construction (EPC), claimed the collaboration with McDermott “further strengthens key competitive advantages of [the] project.”

Cook continued, “[This includes] a mega module capable site with ready infrastructure access to gas, shipping and CCS, an unmatched shareholder base with expertise in CCS and maritime transport, and an experienced team with demonstrated success in executing mega modules projects.

Rob Shaul, McDermott’s Senior Vice President for Low Carbon Solutions, explained that the company’s delivery model, which includes in-house construction and globally diversified fabrication yards, will allow them to offer CHW a modular solution that “maximises value, reduces risk and provides quality assurance.”

In 2023, Mitsui became a joint shareholder in the ACE initiative, to promote clean hydrogen-based ammonia in its fleet and customer base.