A unit of Germany’s BASF and Norway-based Yara plan to construct a world-scale ammonia plant at BASF’s existing site in Freeport, TX, the companies said.

The plant would have an annual production capacity of 750,000 metric tons and operate on a hydrogen-synthesis process. BASF and Yara are evaluating the feedstock sourcing options for the project, a BASF spokesman told NGI.

Other details of the planned joint venture are under discussion, the companies said. The project is subject to final approval from the companies’ boards of directors.

BASF is a major consumer of ammonia for its U.S. downstream activities and intends to further strengthen its backward integration. Yara has a global ammonia network and is growing its U.S. presence.

BASF is also evaluating an investment in a world-scale methane-to-propylene complex on the U.S. Gulf Coast (see Daily GPI, May 2).