DL Makes First Entry into Canadian Blue Ammonia Market... Expects EPC Orders Worth 2.8 Trillion KRW

DL E&C Wins Design Contract for Canadian Fertilizer Plant
CarbonCo's First Export of CCUS Technology License

DL has participated in a fertilizer plant project in Canada, establishing a foothold for entering the North American blue (clean) ammonia market.

Tamara Mohini, Canadian Ambassador to Korea (from left), Jason Mann, CEO of Genesis Fertilizers, and Jaeho Yoo, Head of DL E&C Plant Business Division, are posing for a commemorative photo after signing a contract for the Canadian fertilizer plant project on the 20th. / Photo by DL E&C

On the 20th, DL announced on the 21st that it signed a contract at the Embassy of Canada in Korea with Canadian fertilizer company Genesis Fertilizers to carry out design and technology licensing work for the fertilizer plant project.

DL E&C is responsible for the basic design, and Carbonco, a subsidiary specializing in carbon dioxide capture, utilization, and storage (CCUS) technology, will supply the technology license. This contract marks DL's first entry into the Canadian market.

The signing ceremony was attended by Yoo Jae-ho, Head of DL E&C Plant Business Division; Lee Sang-min, CEO of Carbonco; Jason Mann, CEO of Genesis Fertilizers; and Tamara Mohini, Ambassador of Canada to Korea.

This project involves building a plant in the Belle Plain area of south-central Saskatchewan, Canada, that processes 1,500 tons of blue ammonia per day to produce fertilizer. Once completed, the plant will produce approximately 1.05 million tons of fertilizer annually. The total contract amount is $35 million (about 48.671 billion KRW), and DL E&C plans to complete the basic design by 2026.

Carbonco's CCUS technology will be applied at this plant. After signing a Letter of Agreement (LOA) related to the project in September, Carbonco and Genesis Fertilizers have been negotiating details such as the scale of capture and storage. This is the first time a Korean company has exported CCUS technology to a large-scale overseas project.

Ammonia, a key raw material for fertilizer, is extracted from natural gas, a process that emits a large amount of carbon dioxide. Carbonco uses an amine-based absorbent with high technological maturity and large-scale capture capability to capture about 700,000 tons of carbon dioxide annually. The captured carbon dioxide is sent via pipeline to an underground storage facility about 10 km away for permanent storage. The plant produces blue ammonia with the carbon dioxide removed and then uses it as a raw material to manufacture eco-friendly fertilizer.

This contract also increases the likelihood that DL E&C will secure the main project, valued at $2 billion (about 2.78 trillion KRW). Genesis Fertilizers plans to issue a follow-up project in an engineering, procurement, and construction (EPC) format after completing the 14-month basic design phase.

Yoo Jae-ho, Head of DL E&C Plant Business Division, said, "Canada is rich in resources such as natural gas and is expected to continuously issue large-scale plant construction projects. We will successfully complete this design and further strengthen our position in the North American market."

Lee Sang-min, CEO of Carbonco, stated, "Through the technology Carbonco possesses, we will increase carbon dioxide capture productivity and enable large-scale capture. This mega project will be a great opportunity to showcase the excellence and competitiveness of domestic technology in the global CCUS market."