BASF and Yara International ASA have dropped their joint plan to develop a blue ammonia production facility on the US Gulf Coast, a project that would have supplied future shipping fuel demand.

The move was driven by a desire to concentrate on projects offering the strongest prospects for long-term value creation, Yara said in a press release on Tuesday.

Unveiled in 2023, the project aimed to produce 1.2-1.4 million mt/year of ammonia, with about 95% of CO2 emissions captured and permanently stored.

Alongside power generation, the plant was intended to serve emerging markets for ammonia as a marine fuel and as a hydrogen carrier.

“BASF and Yara are long-standing collaboration partners and continue to jointly operate a world-scale ammonia plant at BASF’s site in Freeport, Texas,” Yara said.