Wabash Valley Resources receives nearly $1.6B conditional loan guarantee from DOE

Wabash Valley Resources received a conditional loan guarantee of up to $1.559 billion from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO).

The loan guarantee would be used to finance a commercial-scale waste-to-ammonia production facility in West Terre Haute, Ind., that uses carbon capture and sequestration (CCS) technology. The project would play a critical role in securing domestic fertilizer supply for the region commonly known as the Corn Belt.

The LPO’s conditional commitment of up to $1.559 billion would be part of a total investment of $2.4 billion that Wabash Valley Resources would secure, including private investment.

Wabash Valley Resources would be the first in the Corn Belt to produce low-carbon ammonia for local farmers and co-ops in the region. The low-carbon ammonia would be cheaper than existing ammonia imports, helping to drive down costs for local businesses and consumers. Further, the project is expected to create 500 construction jobs and 125 operations jobs.

If the loan guarantee is finalized, Wabash Valley Resources would redevelop a former coal-fired power plant site near several closed coal mines.

Ammonia-based fertilizer is a crucial element of the U.S. agricultural system, but its production is a significant contributor to climate change. Globally, ammonia manufacturing accounts for 1 percent to 2 percent of all CO2 emissions. By producing low-carbon ammonia and permanently sequestering 1.6 million metric tonnes of CO2 annually, Wabash Valley Resources would contribute to efforts to reduce its agricultural industry’s emissions.

Workers at the Wabash Valley Resources facility will be represented by several unions, such as the International Brotherhood of Electrical Workers (IBEW), Boilermakers Local 374, Bricklayers Local 4, Cement Masons Local 692, Plumbers and Steamfitters Local 157, and Operating Engineers Local 841.

Also, Wabash Valley Resources plans to engage with four local colleges that may offer training in the skills necessary to operate the anhydrous ammonia plant: Rose-Hulman Institute of Technology, Indiana State University, Saint Mary-of-the-Woods College, and Ivy Tech Community College.

This conditional commitment is being offered through the Energy Infrastructure Reinvestment (EIR) program, first authorized and appropriated by the Inflation Reduction Act.

While this conditional commitment indicates DOE’s intent to finance the project, DOE and the company must satisfy certain technical, legal, environmental, and financial conditions before the DOE enters into definitive financing documents and funds the loan guarantee.

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