#Canada #carbon capture #DL E&C #Blue Ammonia #Belle Plaine

DL E&C's Entry into Canadian Blue Ammonia Market

DL Engineering & Construction (DL E&C), one of South Korea's leading construction firms, has recently marked its entrance into the Canadian blue ammonia landscape, significantly bolstering its presence in North America. This strategic move was highlighted by the signing of a contract with Genesis Fertilizers on November 20, 2024, at the Canadian Embassy in Seoul. The project not only aims to innovate the fertilizer industry with eco-friendly practices but also underscores DL E&C's commitment to sustainable development.

The contract entails DL E&C managing the Front-End Engineering Design (FEED) phase of a new fertilizer plant in Belle Plaine, Saskatchewan, which is set to produce an impressive 1,500 tons of blue ammonia daily. This translates to an annual output of approximately 1.05 million tons of eco-friendly fertilizer, greatly contributing to agricultural sustainability. The whole project is valued at around $35 million, with the FEED phase expected to culminate by 2026. Following the completion of this phase, Genesis Fertilizers will put out an Engineering, Procurement, and Construction (EPC) contract for further developments within 14 months.

Key to this initiative is CARBONCO, a subsidiary of DL E&C, which will be implementing advanced Carbon Capture, Utilization, and Storage (CCUS) technology. Traditionally, ammonia production has involved significant carbon emissions due to the reliance on natural gas; however, CARBONCO's technology aims to capture approximately 800,000 tons of CO₂ each year — effectively reducing emissions by 95%. The captured carbon dioxide will then be transported through a pipeline to a designated underground storage facility roughly 16 kilometers away, ensuring that the environmental impact of the plant is minimized during operation.

This initiative aligns with broader North American trends favoring green business strategies, especially given supportive policies like Canada's Bill C-59, which offers tax credits for projects aimed at reducing carbon footprints. According to the Global Sustainable Investment Alliance, North America amassed $19.5 trillion in green investments alone by 2020, signifying a robust commitment towards sustainable development in the region.

Before this endeavor, DL E&C achieved notable success with the construction of two major ammonia plants in Saudi Arabia, capable of producing up to 6,600 tons of ammonia on a daily basis. The expertise garnered from these previous projects is crucial as DL E&C takes on this new challenge in Canada, marking it as the only South Korean company conducting EPC projects in the U.S.

Apart from the blue ammonia plant, DL E&C is also involved in the world’s largest polyethylene production project ongoing in Texas, which involves a joint venture with Chevron Phillips Chemical and Qatar Energy. The projected completion of this venture is slated for 2026 as well.

As highlighted by Yoo Jae-ho, Head of DL E&C's Plant Business Division, the company is poised to leverage Canada's abundant natural gas resources for future large-scale projects. The successful completion of the FEED phase could open up even more substantial EPC opportunities valued at $2 billion, thereby solidifying DL E&C's footprint in the North American market.

In essence, DL E&C's introduction into the Canadian blue ammonia sector represents a significant milestone not just for the company but for the global push towards sustainable agriculture through innovative technologies and eco-positive practices. More information about DL E&C and their future projects can be found on their official website.