Norway’s Yara and Canada’s Enbridge plan to invest up to $2.9 billion to build a low-carbon blue ammonia production plant in Texas, they said on Friday.

The plant, to be built at the Enbridge Ingleside Energy Center near Corpus Christi, will use carbon capture and storage (CCS) technology to ensure the removal of most CO2 emissions, the companies said.

“Once operational, the production facility will be capable of supplying low-carbon ammonia to meet growing global demand, with an expected capacity of 1.2 million to 1.4 million tons per annum,” the companies said in a statement.

“Approximately 95% of the carbon dioxide (CO2) generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage.”

Yara, the world’s largest ammonia distributor, intends to buy all of the plant’s output, the Norwegian company said.

“This project will significantly contribute to our strategy of decarbonising agriculture as well as serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier,” said Magnus Krogh Ankarstrand, president of Yara Clean Ammonia.

(Reporting by Terje Solsvik; Editing by Essi Lehto and David Goodman)

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