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LSB Industries Turns to Bloom Energy to Build 10 MW Solid Oxide Electrolyzer for Large-Scale Green Hydrogen Production

May 25, 2022

Green hydrogen from Bloom’s electrolyzer expected to produce 13,000 metric tons of clean ammonia per year

LSB’s Pryor facility will become North America’s largest green ammonia production site

Bloom Energy (NYSE: BE), a leading energy technology company, and LSB Industries, Inc. (LSB) (NYSE: LXU), the leading North American producer of industrial and agricultural chemicals, today announced plans to install a 10 megawatt (MW) solid oxide electrolyzer at LSB’s Pryor, Oklahoma facility. The project is expected to generate green hydrogen that will contribute to the synthesis of approximately 13,000 metric tons of zero-carbon ammonia per year.

Operating at superior efficiencies compared to PEM and alkaline electrolyzer technologies, Bloom Energy’s solid oxide electrolyzer is uniquely positioned to unlock clean, low-cost hydrogen at the scale needed for a net-zero economy. Bloom Energy’s high-temperature electrolyzer requires less energy to generate hydrogen than low-temperature electrolyzers on the market today. When integrated with the most energy efficient high-temperature processes like ammonia synthesis, which produces extra heat energy, Bloom’s electrolyzer is up to 30-40 percent more efficient than competing electrolyzer technologies, resulting in the lowest cost hydrogen for end customer use. With electricity accounting for up to 80 percent of the cost of hydrogen production through electrolysis, solid oxide electrolysis at scale offers a viable, cost-accessible pathway to hydrogen production. Further, clean hydrogen produced at LSB’s facility may qualify for federal incentive programs, such as those currently under evaluation by Congress.

“Achieving a net-zero future requires clean hydrogen at scale, and the collaboration between Bloom Energy and LSB is a milestone for both green hydrogen production and the decarbonization of an industry that’s vital to farmers and consumers alike,” said Rick Beuttel, vice president, hydrogen business, Bloom Energy. “We’re excited to collaborate with LSB to provide significant electrolysis efficiencies, demonstrating that zero-carbon fuels are available and accessible today.”

Ammonia is a crucial component in agricultural fertilizers, with 80 percent of ammonia production used to fertilize crops that will grow food necessary to feed the world. The vital production of ammonia, however, has historically been even more emissions-intensive than other hard-to-abate industrial sectors like cement or steel. The 10 MW solid oxide electrolyzer installation – which will contribute to making LSB’s Pryor facility the largest green ammonia production site in North America – will demonstrate the ability of hydrogen to decarbonize ammonia production and other industrial sectors, which are collectively responsible for more than one-third of global energy consumption.

ThyssenKrupp, a leading global technology, engineering, procurement, construction, and service provider to chemical plants, will co-develop the multi-phase project, developing an initial engineering design to convert a small portion of existing conventional (“gray”) ammonia capacity at LSB’s Pryor facility into green ammonia. Bloom Energy will then install, operate, and maintain the 10 MW electrolyzer at LSB’s Pryor facility, targeting hydrogen production to begin in 2023.

For more information about Bloom Energy’s solid oxide electrolyzer and the company’s commitment to a zero-carbon future, visit: www.bloomenergy.com/bloomelectrolyzer.

Forward-Looking Statements

This press release contains certain forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or the negative of these words or similar terms or expressions that concern Bloom’s expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, Bloom’s expectations regarding the collaboration with LSB, including plans to install a solid oxide electrolyzer at LSB’s Pryor facility, integration with exothermic processes for scaling green hydrogen generation and related efficiency gains, availability of any federal clean energy incentives, projected production dates, viability, cost and timing of future hydrogen production, and progress towards any net-zero emissions or decarbonization goals. More information on potential risks and uncertainties that may impact Bloom’s business are set forth in Bloom’s periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 25, 2022, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the SEC on May 6, 2022, as well as subsequent reports filed with or furnished to the SEC from time to time. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their energy. The company’s leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies around the world turn to Bloom Energy as a trusted partner to deliver lower carbon energy today and a net-zero future. For more information, visit www.bloomenergy.com.

About LSB Industries, Inc.

LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, manufactures and sells chemical products for the agricultural, mining, and industrial markets. The Company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. LSB’s products are sold through distributors and directly to end customers primarily throughout the United States. Committed to improving the world by setting goals that will reduce our environmental impact on the planet and improve the quality of life for all of its people, the Company is well positioned to play a key role in the reduction of global carbon emissions through its planned carbon capture and sequestration, and zero carbon ammonia strategies. Additional information about LSB can be found on its website at www.lsbindustries.com.

Bloom Energy Media Contact:
Jennifer Duffourg
480.341.5464
jennifer.duffourg@bloomenergy.com

Bloom Energy Investor Relations:
Ed Vallejo
267.370.9717
Edward.Vallejo@bloomenergy.com

Source: Bloom Energy
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