As discussed in our companion article, New York-based TransGas Development Systems, LLC announced plans in 2023 to build the Adams Fork Energy ammonia project in Mingo County, WV. This project was originally part of the Appalachian Regional Clean Hydrogen Hub (ARCH2) but its partner CNX later backed out and the project is no longer part of this larger effort. Despite this setback, TransGas is still trying to develop its ammonia project.
What is Ammonia – and How Would This Plant Make It?
Ammonia is one of the most commonly produced chemicals. In 2020, the world produced 185 million metric tons of ammonia, nearly entirely from fossil fuel feedstock. Most of it is turned into fertilizer. The rest is made into household items, like cleaning products and cosmetics, or industrial goods, like plastics, explosives, and pesticides.
At Adams Fork Energy, TransGas would break up natural gas into hydrogen and carbon dioxide (CO2) and then combine the hydrogen with nitrogen to make ammonia. The ammonia would then be cooled and stored on-site. The resulting carbon dioxide will either be captured and stored underground or released directly into the atmosphere.
If built to full capacity, Adams Fork Energy would consist of six ammonia production units that could produce up to 13 million tons of ammonia each year andwould surpass CF Industries’ ammonia production facility in Louisiana to become the world’s largest ammonia producer.
“Blue,” “Gray,” or “Green” Ammonia?
There are three primary ways to produce ammonia:
- Gray ammonia: Made from natural gas without capturing carbon emissions. Most ammonia in the U.S. is produced this way.
- Blue ammonia: Made from natural gas but using carbon capture and storage (CCS) to inject any captured CO2 into deep geologic formations for long-term storage.
- Green ammonia: Made from water by means of a process powered byrenewable energy and no fossil fuels.
Green ammonia is only truly low emissions when made from hydrogen produced using new, dedicated renewable energy located near the site of production. By not relying on natural gas, green ammonia production also avoids exposing communities to the health harms associated with the extraction, transportation, and waste disposal of natural gas. Unfortunately, this is not the kind of ammonia TransGas is planning to produce at the Adams Fork Energy facility, meaning that this facility’s operations would contribute to our region’s pollution from natural gas.
Can TransGas Really Capture and Store Its Carbon?
TransGas plans to make ammonia from natural gas but whether it can — or will — capture and store CO2 effectively is an open question. The company says it will capture 99.3% of carbon emissions. But the technology required is expensive and hasn’t worked well in the real world, with most facilities capturing significantly less CO2 than the 95% rate sought by the industry. Plus, the project’s air permit does not require the company to capture its CO2 emissions and, at the time of writing, the company has yet to apply for a permit to inject CO2.
Overall, very few projects in any industry in the U.S. have injected CO2 underground for long-term storage. The geology has to be just right, and there are risks — leaks, blowouts, induced seismicity, and water contamination. As of the beginning of 2025, only three projects in the U.S. were actively injecting CO2 for long-term storage and, according to the EPA, no well has completed a full lifecycle from injection to post-injection site care to site closure.
Health and Safety Risks
If TransGas does attempt to store carbon on site, injection volumes could be as high as millions of tons of CO2 every year. Storing CO2 in geologic formations introduces the potential for a variety of issues. This includes impacts to groundwater, such as those from the formation of carbonic acid from CO2 and water or from the migration of brine (i.e. fracking waste) due to increased underground pressure. Accidental releases of injected CO2, through leaks or massive wellhead blowouts, could endanger nearby communities. CO2 is odorless, colorless, and heavier than air and exposure can lead to confusion, unconsciousness, or even suffocation at high enough concentrations. Nearly 50 people were hospitalized and hundreds had to evacuate their homes after exposure to CO2 from a ruptured pipeline near Satartia, MS. CO2 injections also increase the potential for earthquakes and other induced seismic activities.
Producing ammonia from natural gas would also reinforce our region’s reliance on natural gas. The health impacts of fracking have been well documented by years of scientific research. Fracking is linked to serious health risks: cancer, asthma, heart problems, birth defects, respiratory diseases, and more.
Ammonia itself is also dangerous. It’s a hazardous chemical that can cause serious burns, lung damage, and death if accidentally released. Transporting ammonia also introduces risk of disaster. The facility plans to use existing rail lines for ammonia transport. In the last several years, deregulation and poor labor safety requirements have heightened the risk of derailments and other rail-related accidents. In 2022 alone, West Virginia saw eleven rail accidents totaling more than $1,400,000 in damages.
Economic Uncertainty
The future of the Adams Fork Energy project is far from certain. TransGas will likely need federal tax credits to make its project profitable. The project could claim the 45Q tax credit by capturing CO2 or seek the 45V tax credit by producing certified low-carbon hydrogen. But based on a presentation on its website, the company seemingly hasn’t committed to one path or the other, a decision that would have significant financial and operational implications.
And since these credits would not be available until the project is either capturing carbon or producing hydrogen, TransGas would still have to acquire a significant amount of capital to pay for the facility’s construction. Even with government support, it’s unclear whether there’s a strong market for blue ammonia. Customers might not be willing to pay more for a lower-emissions product. And other parts of the U.S., especially the Gulf Coast, are better positioned to export ammonia overseas.
Some analysts expect long-term demand for ammonia to grow significantly, demand that would be driven largely by new markets such as hydrogen transportation and fuel for large ocean-going ships. Forecasted demand growth and the federal 45Q and 45V tax credits have spurred a surge of new ammonia projects across the country, including the Adams Fork Energy facility. Altogether, the 37 or more new projects in the US would boost domestic ammonia production by more than 350%, if built to full capacity.
But this growth would rely on new technologies and yet-to-emerge supply chains. For these reasons, it’s unlikely that demand for new ammonia will grow to match the planned increase in supply, casting doubt over Adams Fork Energy and the dozens of other ammonia projects across the country. World-class blue ammonia projects in Louisiana’s Ascension Parish are already encountering market uncertainty, rising costs, and ongoing community opposition. Fertilizer giant Nutrien’s blue hydrogen project in Geismar, LA, once billed as “the world’s largest clean ammonia project,” halted operations in 2023, only a year after it was announced. Just last month, Air Products said it would delay startup of its $8 billion blue hydrogen manufacturing complex near Burnside and will not move forward with the project until it sells off the facility’s carbon capture and ammonia portions.
These developments in the Gulf South bode poorly for Adams Fork Energy’s prospects in Southern West Virginia, where supporting infrastructure is less developed and nearby off-takers don’t yet exist.
What’s at Stake
Adams Fork Energy is already over a year behind schedule. TransGas originally said construction would start in January 2024 and take one year. Now, they say it will take 30 months — and, as far as we can tell, work hasn’t started yet.
Two years after first being announced, the project remains clouded by unanswered questions. Right now, there’s little evidence that the benefits will outweigh the costs. Company spokespeople say the facility would create 2,000 temporary construction jobs and “a couple hundred” permanent jobs in Mingo County. These jobs matter, but they come with significant potential cost to nearby communities. Appalachian communities deserve real, long-term investment — investments that don’t force communities to gamble their health and safety for the prospect of employment.