Ammpower Corp. provides additional information regarding LOI to develop Ammonia Production Facility
Ammpower Corp. Provides Additional Information Regarding Letter Of Intent To Develop Ammonia Production Facility With Port Of South Louisiana – Largest Tonnage Port In The Western Hemisphere
Vancouver, BC – AmmPower Corp. has clarified and provide additional information in relation to certain disclosure contained in its press release issued earlier today.
The Company notes that it has signed a Letter of Intent (“LOI”) with the Port of South Louisiana (“PoSL”), pursuant to which AmmPower and PoSL will jointly explore the feasibility of developing a green hydrogen/ammonia facility at the PoSL (the “Potential Project”). PoSL is the largest tonnage port in the Western Hemisphere, servicing over $57 Billion in Exports, and $18 Billion in imports every year. Stretching 54 miles along the Mississippi River, PoSL is a vital port to the United States, and ranks first in total domestic trade and second in total foreign trade.
Under the terms contemplated by the LOI, AmmPower will work with PoSL to identify a potential site for the Potential Project, and to determine, and share information with respect to, the economic, structural, commercial, financial and logistical feasibility of developing the Potential Project, which is currently contemplated as a large green hydrogen and ammonia facility, to produce, store and distribute greenammonia for use as a carbon free fuel and a carrier of hydrogen energy. The facility would be aimed at servicing the fueling of oceangoing vessels (over 4,500/year) at the PoSL, and at providing hydrogen rich, green ammonia for use domestically and for export. In addition, each party has committed to allocating one professional belonging to its own staff to carry out the actions and activities contemplated by the LOI.
The Company estimates that the cost of the Potential Project will be upwards of $1 billion, and notes that any decision to proceed with construction (“Construction Decision”) will depend on a variety of factors and contingencies, including, but not limited to, the negotiation of a satisfactory definitive agreement with PoSL, completion of a feasibility report and raising the funds necessary to proceed. The Company estimates that construction and development will take approximately 39 months from the time a Construction Decision is made. The Company has engaged a large, experienced Engineering Procurement Construction company to complete a feasibility report, which is currently underway. Once the study is completed, the Company intends to provide further details regarding overall costs associated with the Potential Project.
Image Credit - Ammpower Corp. ( For representation only )