DOE Invests $1.5 Billion in Low-Carbon Fertilizer Production, Revitalizing Coal Community

In a significant stride towards a more sustainable future, the Department of Energy’s Loan Programs Office has announced a conditional commitment of $1.559 billion towards a total investment of $2.4 billion for Wabash Valley Resources (WVR). This groundbreaking investment will support the development of a state-of-the-art facility in West Terre Haute, Indiana, dedicated to producing low-carbon anhydrous ammonia fertilizer. This project holds the potential to be a game-changer for American agriculture, revitalizing a community that has been significantly impacted by the decline of coal-related industries.

WVR’s innovative approach to fertilizer production involves utilizing industrial waste in conjunction with carbon capture technology. This unique combination has the potential to make their facility the first in the United States to achieve carbon-negative ammonia production. By producing ammonia domestically, WVR will help alleviate a critical shortage in the Eastern Corn Belt, a region heavily reliant on imported fertilizer. This will not only enhance food security but also open new markets for American farmers who are increasingly seeking sustainable and low-carbon agricultural practices.

Beyond its environmental and agricultural benefits, the project is a beacon of hope for the West Terre Haute community. The $2.4 billion investment is expected to create over 1,100 direct and indirect jobs, including at least 500 union construction jobs. WVR is deeply committed to its local workforce and has signed the National Maintenance Agreement, ensuring that its construction and maintenance operations will be performed by a unionized workforce.

This transformative initiative has attracted support from leading organizations in the energy and technology sectors. Climate Investment, a specialized decarbonization investor founded by eleven global energy companies, has been an early investor in WVR’s carbon capture technology. Baker Hughes, a leader in energy technology, has been a long-term partner, providing expertise in geological sequestration and supplying advanced technology and equipment. Honeywell, a global innovator in the energy transition, has played a vital role in designing WVR’s carbon capture process, leveraging its expertise in cryogenic gas separation. Samsung E&A America, a global engineering firm committed to sustainable energy solutions, is providing support for the overall facility design.

Dan Williams, WVR’s chief operating officer, expressed his gratitude for the unwavering support from the Department of Energy, labor unions, and strategic partners: “This nearly decade-long development phase has been possible thanks to the dedication of our partners. WVR is thrilled to be at the forefront of a new industrial era that harmonizes environmental, social, and economic benefits, and we cannot thank our partners enough.”

The project has garnered widespread praise from industry leaders, labor organizations, and policymakers. Kenneth Cooper, international president of the International Brotherhood of Electrical Workers (IBEW), highlighted the project’s significant impact on working families: “This project is a win for working families, bringing quality construction jobs to a community that has long relied on coal. By transforming industrial waste into a valuable resource, we are not just cleaning up our environment; we are also putting skilled tradespeople to work, ensuring that the benefits of this project are felt where they are needed most. This is exactly the kind of forward-thinking development that supports both workers and our communities.”

Don Villwock, former president of Indiana Farm Bureau and a farmer in Edwardsport, Indiana, underscored the project’s importance for Hoosier farmers: “Creating a large new source of anhydrous ammonia in Indiana would be of enormous benefit to Hoosier farmers. And, manufacturing fertilizer with a low carbon rating is even more powerful.”

Former State Senator Jon Ford (R-Terre Haute) emphasized the project’s significance in revitalizing a coal community and addressing the carbon intensity of the agriculture sector: “This significant investment by the Department of Energy is a historic step toward increasing the supply of domestically produced, low-carbon fertilizers. It supports the revitalization of a coal community that has suffered job losses from the decline of coal mining and power generation while also addressing the carbon intensity of our farming and food industries.”

WVR is poised to become a leading supplier of low-carbon fertilizer in the Eastern Corn Belt, playing a crucial role in the decarbonization of farming practices. This project exemplifies the power of innovation and collaboration in addressing critical challenges, creating a more sustainable future for American agriculture and communities.

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