(Bloomberg) -- The Biden administration is offering $1.6 billion in financing to an Indiana-based ammonia production facility in an effort to create a domestic supply of low-carbon fertilizer.
The conditional loan guarantee would help finance the commercial-scale waste-to-ammonia production facility using carbon capture and sequestration technology being built in West Terre Haute by Wabash Valley Resources LLC, the Energy Department said Monday. The project would repurpose an industrial gasifier to use petroleum coke, a byproduct of oil refining, while permanently storing carbon dioxide to produce 500,000 metric tons of anhydrous ammonia annually.
The project has received backing from hydrogen vehicle startup Nikola Corp. and Climate Investment, which was founded by members of the Oil and Gas Climate Initiative.
(Updates story to add detail about the project’s funding in last paragraph.)
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