The US Department of Energy’s (DOE) Loan Program Office (LPO) has closed a $1.5 billion loan to produce blue hydrogen and ammonia in Indiana.
This is a crucial financial step for the development of a major blue hydrogen and ammonia production hub. The facility, run by Wabash Valley Resources, will repurpose a former coal gasification plant. It will use coal and petroleum coke as feedstock.
The Indiana facility is designed to produce 500,000 tons of blue ammonia annually. The “blue” designation is achieved by implementing Carbon Capture and Storage (CCS) technology. The project plans to capture and permanently store 1.67 million tons of CO2 each year.
Administration prioritizes domestic supply:
The loan signals a strong government commitment to energy security and job creation in industrial communities. The administration highlights that the project leverages domestic resources while committing to emissions mitigation.
Industrial decarbonization:
The $2.6 billion project is set to be a model for industrial decarbonization in the Midwest. The blue ammonia produced serves as a vital agricultural fertilizer. It also acts as a potential hydrogen carrier for other energy uses.
Simon Greenshields, Chairman, Wabash Valley Resources Board, said, “We are grateful to the leadership of the U.S. Department of Energy… for their confidence in our vision and steadfast partnership.”
The project’s success hinges on its ability to demonstrate large-scale, permanent CO2 storage. The facility is expected to create hundreds of construction jobs and dozens of permanent roles in West Terre Haute.
