The Energy Department’s Loan Programs Office announced Monday it intends to issue a $1.56 billion loan guarantee to build an ammonia plant that would be the office’s first project involving carbon capture.
The loan guarantee will help support the redevelopment of a former coal-fired power plant in West Terre Haute, Indiana, to produce ammonia fertilizer through a process that uses industrial waste in combination with carbon capture.
The Energy Department’s loan office had an estimated $212 billion in remaining loan authority at the end of August, but those funds face an uncertain future should Donald Trump return to the White House.
The conditional commitment announced Monday to Wabash Valley Resources would help backstop the total investment of $2.4 billion needed for the project, which could be the first carbon-negative ammonia production facility, according to the Loan Programs Office.
