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LSB Industries Launches Green Ammonia Project

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Partnership with Bloom Energy and thyssenkrupp Uhde to Produce Approximately 30,000 Metric Tons of Zero Carbon Ammonia Per Year at LSB’s Pryor Facility

OKLAHOMA CITY, May 25, 2022--(BUSINESS WIRE)--LSB Industries, Inc. ("LSB" or "the Company"), (NYSE: LXU), today announced that it entered into agreements with thyssenkrupp Uhde USA, LLC ("thyssenkrupp Uhde") and Bloom Energy ("Bloom"), (NYSE:BE) to develop a project to produce approximately 30,000 metric tons of zero-carbon or "green" ammonia per year at LSB’s Pryor, Oklahoma facility ("Pryor"). Green ammonia is produced by extracting hydrogen from water using an electrolyzer powered by a renewable energy source, such as solar or wind. Since no natural gas or other fossil fuels are used as the feedstock to the ammonia production process, nor as the power source, the end-product has no associated carbon emissions.

Thyssenkrupp Uhde will develop the engineering design to convert a small portion of Pryor’s existing conventional or "grey" ammonia capacity into green ammonia. Pending results of the feasibility study currently underway, and subsequent board approval, the project will be constructed in two phases: first with Bloom supplying a 10 megawatt (MW) solid oxide electrolyzer, followed by the installation of an additional 20MW alkaline electrolyzer unit, which will be sourced from a leading manufacturer. Bloom will, own, operate and maintain the solid oxide electrolyzer that, once in operation, will be the largest of its kind in the world. Once the second electrolyzer is installed and operational, Pryor will be the largest green ammonia production site in North America.

"We are very excited to partner with Bloom Energy and thyssenkrupp Uhde in taking our first step to becoming a leading supplier of zero carbon or green ammonia in a unique facility that will have two electrolyzer technologies operating side by side. We believe that being an early entrant into the green ammonia space will allow us to become a leading player as the market evolves," stated Mark Behrman, President, and Chief Executive Officer of LSB Industries. "This project is very important for LSB and our partners because, in addition to its initial environmental benefit, it provides a learning opportunity. With two electrolyzer technologies working together in a real-world application, we can learn how to effectively develop projects and operate facilities in this exciting new environment. We view this project as our first critical step in becoming a major facilitator and participant in the green ammonia market of the future."

"This project highlights the value that strategic collaborations and industry-leading innovation can bring to lead advancements in decarbonizing today’s energy system," said Rick Beuttel, vice president of Bloom Energy’s hydrogen business. "With a focus on providing highly efficient and low-cost green hydrogen at scale, we’re proud to partner with LSB to accelerate the adoption of this clean, carbon-free fuel."

The green hydrogen produced from the electrolyzers as part of the ammonia production process is expected to qualify for federal incentive programs such as the production and investment tax credits currently under evaluation by Congress.

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.

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 thyssenkrupp Uhde USA, LLC.

thyssenkrupp Uhde USA, based in Houston, Texas, is a leading engineering, procurement and construction services provider for the North American chemical and fertilizer industry. The company offers market leading technologies from thyssenkrupp Uhde, Germany together with local EPC competence from a single source and complete value chains for green and blue ammonia, methanol, SNG, nitrous oxide abatement, and more. Their purpose statement "We create a livable planet" reflects the ambition to be a driving force in the sustainable transformation of the global industrial landscape.

Forward-Looking Statements

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated performance based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or actual achievements to differ materially from the results, level of activity, performance or anticipated achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, business and market disruptions related to the COVID-19 pandemic, market conditions and price volatility for our products and feedstocks, as well as global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; disruptions in production at our manufacturing facilities; our ability to complete the preferred stock exchange transaction on the terms disclosed or at all and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company’s filings with the Securities and Exchange Commission (SEC).

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220525005360/en/

Contacts

Investor Contacts:
Fred Buonocore, CFA, Vice President of Investor Relations
(405) 510-3550
fbuonocore@lsbindustries.com

Media Contact:
David Kimmel, Director of Communications
(405) 815-4645
dkimmel@lsbindustries.com