Dyno Nobel International has announced it will complete a $30m study to establish the feasibility of building an $800m ammonia production facility in Waggaman, Louisiana, US.
The plant is expected to produce 750,000mtpa of ammonia at Cornerstone Chemical Company's existing complex in Jefferson Parish, Louisiana.
Dyno Nobel International president, Simon Atkinson, said the plant is on a brownfield chemical complex site that currently has several downstream plants including acrylonitrile, melamine and sulfuric acid.
"In addition, it has a capital advantage, as the infrastructure for the ammonia plant already exists," Atkinson added.
State of Louisiana governor, Bobby Jindal, said Dyno Nobel's interest in building a new facility in the area speaks volumes about the supply of natural gas, the performance of energy markets, as well as the state's business climate and workforce.
"We're confident that when the company's due diligence is done and a formal investment decision is made early next year that this project will move forward and bring tremendous economic benefits to this region," Jindal said.
Upon confirmation of proceedings with the feasibility study, Dyno Nobel will move forward with the project in the first half of 2013, with initial production proposed for late 2015.
Cornerstone Chemical Company CEO, Greg Zoglio, said: "Dyno Nobel's foresight of this paradigm shift, coupled with the brownfield offering by Cornerstone Chemical Company and project support provided by the State of Louisiana, will allow the resurgence of world-class ammonia production in the state."
Dyno Nobel, a subsidiary of Incitec Pivot, manufactures explosives for the construction, quarry, mining, pipeline and geophysical exploration industries.