Clean Hydrogen Works (CHW) awards McDermott the Front-End Engineering and Design (FEED) contract for the Ascension Clean Energy (ACE) Project.
CHW and its strategic partners, ExxonMobil, Mitsui O.S.K. Lines, and Hafnia, are jointly developing the major initiative.
Project Overview
The ACE Project will be located in Ascension Parish, Louisiana. Initially, it will produce 2.4 million metric tons per annum (MTPA) of clean ammonia, with plans for expansion in subsequent phases to reach 7.2 MTPA.
The project is backed by carbon capture and sequestration (CCS) agreements with ExxonMobil, and regulatory approvals are expected by early 2025.
Advanced discussions are underway regarding off-take agreements, and Goldman Sachs is serving as the financial advisor.
The project is expected to reach Final Investment Decision (FID) by late 2025, and they plan to begin production in 2029.
Partnership with McDermott
Johnny Cook, Senior Vice President of Engineering, Procurement and Construction (EPC) at CHW, expressed excitement about the partnership with McDermott.
He highlighted McDermott’s extensive experience in mega module construction, emphasizing their successful track record of delivering major energy and chemical projects on time and within budget. Cook stated, “This collaboration strengthens key competitive advantages of our project, including a site with ready infrastructure access to gas, shipping, and CCS”.
Expertise and Capabilities
Rob Shaul, Senior Vice President of Low Carbon Solutions at McDermott, described the FEED award as a testament to the company’s leadership. He highlighted their expertise in mega-module delivery and installation.
He also highlighted McDermott’s integrated delivery model. This model includes self-perform construction capabilities and a portfolio of globally diversified, company-owned module fabrication yards.
Shaul said, “This approach offers CHW a repeatable modular implementation solution that maximizes value, reduces risk, and ensures quality”.
Contract Scope
McDermott will deliver FEED services as part of the agreement. This includes engineering, procurement, and construction (EPC) estimating and execution planning.
The work will be led from McDermott’s Houston office, according to the press release. Additional support will come from its office in Gurugram, India.
