Clean Hydrogen Works has awarded McDermott the front-end engineering and design contract for the Ascension Clean Energy Project. This initiative, located in Ascension Parish, Louisiana, is being developed by CHW in collaboration with strategic shareholders ExxonMobil, Mitsui O.S.K. Lines, and Hafnia.
The ACE Project aims to produce 2.4 million metric tonnes per annum (MTPA) of clean ammonia in its initial phase, with plans for expansion to 7.2 MTPA in subsequent phases. The project will utilise carbon capture and sequestration technology, supported by contracts with ExxonMobil. Regulatory approvals are anticipated by early 2025, with a final investment decision expected by late 2025 and production targeted to commence in 2029. Goldman Sachs serves as the project’s financial advisor, and off-take agreements are reportedly in advanced discussions.
Johnny Cook, CHW’s senior vice president of Engineering, Procurement, and Construction, highlighted the strategic benefits of the collaboration with McDermott. “We are thrilled to partner with McDermott, a company renowned for its extensive experience in mega module construction, demonstrated by a remarkable track record of on-time, on-budget execution of major energy and chemicals projects. This collaboration further strengthens key competitive advantages of our project, including being 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 module projects,” he stated.
Vee Godley, CHW’s senior vice president of Project Development, underscored the project’s economic and community impact. “This transformational project is expected to bring 350 new jobs, 1,500 peak construction jobs, and another 1,200 indirect jobs to the area. We look forward to working with McDermott toward our shared goal of constructing and operating a safe, environmentally responsible project. We value direct engagement with the community; this ongoing dialogue is critical in developing a project of which we can all be proud,” Godley added.
McDermott’s senior vice president of Low Carbon Solutions, Rob Shaul, expressed confidence in the company’s ability to deliver value through its modular approach. “This FEED award is testament to McDermott’s industry-leading mega-module delivery and installation expertise, and the breadth of our capabilities across the energy transition. Our integrated delivery model, with self-perform construction capabilities and portfolio of McDermott-owned, globally diversified, module fabrication yards, means we can offer CHW a repeatable modular implementation solution that is expected to maximise value, reduce risk, and provide quality assurance,” Shaul stated.
The scope of McDermott’s contract includes FEED services as well as engineering, procurement, and construction estimating and execution planning. The work will be led from McDermott’s Houston office, with support from its Gurugram, India office.
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