A low-carbon $1 billion ammonia production plant using proprietary hydrogen technology is being developed in Texas with the promise to cut carbon at coal-fired power plants, a major source of global carbon dioxide emissions.

The SK Group-backed climate technology company 8 Rivers Capital LLC is building the Cormorant Clean Energy Project in Port Arthur that is expected to produce an estimated 880,000 tons of ammonia, the company said. The plant will use proprietary oxy combustion technology, which the company says captures CO2, eliminates emissions and lowers production costs. It is expected to break ground in 2025 with commercial operation beginning late 2027, according to Chief Operating Officer Steve Milward.