UK-based industrial gases supplier Linde says it will invest $1.8 billion in a new blue hydrogen project on the US Gulf Coast to supply Dutch chemicals company OCI, Kallanish reports.

The parties signed a long-term agreement for the supply of clean hydrogen and nitrogen to OCI’s new world-scale blue ammonia plant in Beaumont, Texas. The on-site complex, to be built and operated by Linde, will include autothermal reforming with carbon capture and a large air separation plant. Start-up is slated for 2025.

“With Linde’s track record in successfully executing complex projects, its extensive pipeline network, and support from the US Inflation Reduction Act, the company is well positioned to secure many more clean energy projects,” says Linde’s ceo Sanjiv Lamba, in a statement.

Linde said it will sequester over 1.7 million tonnes of carbon dioxide emissions per year with the new project, but didn’t disclose how much clean hydrogen it will produce. OCI’s plant has capacity to produce 1.1m t/y of blue ammonia. A Linde spokesperson confirmed there will be excess hydrogen capacity to be sold to existing and new customers.