Enbridge Inc. (TSX: ENB) announced this morning a joint venture with EnCap Flatrock Midstream portfolio company Humble Midstream. The effort is intended to have a joint development and marketing of a low-carbon hydrogen and ammonia production and export facility.
Targeted to be installed in the firm’s Enbridge Ingleside Energy Center (near Corpus Christi, Texas), the facility is planned to be a utility-scale ultra-low carbon production facility.
Around 95% of the carbon dioxide produced from the facility will be stocked in a carbon capture infrastructure. The firm also said that both hydrogen and ammonia “have zero CO2 emissions at the point of use.”
“This is a good example of how Enbridge is leveraging existing conventional energy assets and capabilities to extend growth and capitalize on low carbon opportunities in the energy transition,” said EVP Colin Gruending. “The EIEC is already the premier export facility on the U.S. Gulf Coast and will play an even greater role in global energy security and sustainability.”
Texas Eastern Transmission Pipeline, an affiliate of the firm, has been tapped to transport the feed gas that will be used for the production process.
In February 2022, the company reported its 2021 financials, highlighted by an annual revenue of $47.1 billion. The firm also reiterated its 2022 EBITDA guidance of $15.0 – $16.0 billion and distributable cash flow per share of $5.20 – $5.50.
Enbridge last traded at $57.23 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.