The U.S. Department of Energy's Loan Programs Office (LPO) has made a significant move by announcing a conditional loan guarantee of up to $1.559 billion for Wabash Valley Resources, LLC. This loan will support the development of a groundbreaking waste-to-ammonia production facility in West Terre Haute, Indiana.
Using carbon capture and sequestration (CCS) technology, the facility is poised to be the world’s first carbon-negative ammonia production plant.
Wabash Valley Resources aims to repurpose an industrial gasifier. The facility will convert petroleum coke into 500,000 metric tons of anhydrous ammonia annually while capturing and storing carbon emissions. It will be crucial in securing the fertilizer supply for the Midwest’s Corn Belt, a region heavily reliant on nitrogen-based fertilizers.
This move helps ensure domestic food security while aligning with climate goals. The project represents a total investment of $2.4 billion, with Wabash Valley Resources securing additional private investment beyond the DOE’s loan guarantee.
This facility is a game-changer for farmers and local co-ops in the Corn Belt. Producing low-carbon ammonia helps reduce dependence on imported ammonia, making it more cost-effective and environmentally sustainable for local businesses. Beyond the environmental impact, the project is expected to create hundreds of union jobs—500 during construction and 125 permanent operations roles—significantly boosting the local economy. The project could indirectly create an additional 1,100 permanent jobs based on independent analysis.
Ammonia-based fertilizers are vital to U.S. agriculture, but their traditional production methods are heavy contributors to global CO2 emissions. By capturing 1.6 million metric tons of CO2 each year, Wabash Valley Resources will help the U.S. reduce agricultural emissions, making strides in both food production and environmental protection.
Recent events, such as the Russian invasion of Ukraine, have caused price spikes in ammonia, adding pressure on U.S. farmers who are already facing supply constraints. The Midwest, known for its strong agricultural output, relies heavily on nitrogen fertilizers, but the region currently depends on imports from Canada and overseas. This facility's local production will strengthen the supply chain, helping reduce price volatility and securing the agricultural industry’s future.
The project also focuses on sustainability by repurposing petroleum coke (petcoke), a byproduct of oil refining often exported to lower-income countries where its combustion has severe environmental consequences. Wabash Valley Resources will be the first U.S. facility to use pet coke to produce ammonia while permanently sequestering the associated carbon emissions, positioning it as a pioneer in sustainable manufacturing.
This initiative aligns with the broader goals of the Biden-Harris Administration’s Justice40 Initiative, which aims to deliver 40% of the benefits from federal climate and clean energy investments to disadvantaged communities. Wabash Valley Resources is committed to engaging the local community and collaborating with various labor and environmental groups to ensure good-paying jobs, minimal environmental impact, and the well-being of local residents.
The project has strong union support, with workers expected to be represented by several local unions under the National Maintenance Agreement, ensuring high standards for work conditions and project efficiency. Wabash Valley Resources is also dedicated to fostering a diverse workforce by partnering with local organizations to create apprenticeship and training opportunities for underrepresented communities.
Wabash Valley Resources has plans to collaborate with four local colleges to provide skills training for the plant's future workforce. This effort will help ensure a steady stream of qualified professionals ready to support the facility's operations. Additionally, the company is working on pre-employment programs to further prepare candidates for careers at the plant.
This conditional loan guarantee is part of the Energy Infrastructure Reinvestment (EIR) program under the Inflation Reduction Act, designed to revitalize dormant energy infrastructure. While the DOE's conditional commitment signals their intent to finance the project, final approval will depend on meeting technical, legal, and environmental conditions.
If successful, this project will be critical to the administration's push for a clean energy future, ensuring economic growth and energy security for local communities.
