AdvanSix Announces Process Design and License Agreement to Assess Expansion of Its Ammonia Platform to Supply Growing Regional Diesel Exhaust Fluid Market
AdvanSix (NYSE:ASIX), a vertically integrated chemistry company serving diverse end markets, today announced it has entered into a process design and licensing agreement to assess expansion of its integrated ammonia platform at its Hopewell, Virginia site to enable the domestic manufacturing of Diesel Exhaust Fluid (DEF), a critical emissions-control product used across on-and-off highway diesel applications.
DEF is an additive for reducing NOx emissions from diesel engines, with strong and growing demand driven primarily by Class 8 vehicle usage in the Mid-Atlantic and Northeast of the United States. The AdvanSix Hopewell site provides a strong foundation for this expansion, as it already produces all required DEF inputs – carbon dioxide, ammonia and high-purity water. This potential expansion would complement existing manufacturing capabilities at the site, which continues its full commitment to producing ammonium sulfate fertilizer in service to the U.S. farming industry.
"As a U.S. manufacturer, AdvanSix is uniquely situated to enable reliable, domestic supply to meet growing demand in a market currently served by production from other regions and imports. Our integrated ammonia platform provides us with the core capability to build a new, differentiated, high-value offering to meet market demands in the DEF value chain," said Erin Kane, President and CEO of AdvanSix. "By exploring this expansion, we are creating future optionality to expand into adjacent products as market needs evolve while reinforcing our commitment to disciplined capital allocation and long-term value creation."
This potential investment would extend the Company's strength in integrated chemical manufacturing, leveraging the flexibility of its key ammonia platform to increase access to a broader portfolio of commercial opportunities across diverse end markets.
AdvanSix has selected Stamicarbon, the nitrogen technology licensor of Nextchem (MAIRE Group), to provide process design and licensed technology for the contemplated expansion. The partnership brings together AdvanSix's operational expertise and integrated asset footprint with Stamicarbon's global leadership in urea technology.
"This award confirms the strength and versatility of our nitrogen technology portfolio, which is increasingly finding applications beyond traditional fertilizer utilizations," said Fabio Fritelli, Managing Director of Nextchem. "By leveraging our proprietary NX STAMI™ Urea technology, we are proud to support the development of emission reduction solutions for the mobility sector such as DEF, while further strengthening Nextchem's presence in North America."
The project scope includes a urea melt plant based on NX STAMI™ Urea technology, fully integrated with a DEF production unit designed to convert 100% of the urea melt into DEF. This configuration represents a first of its kind application for Stamicarbon, marking the first project in which all urea melt production may be dedicated exclusively to DEF.
A mandatory substance injected into the exhaust system of all modern diesel engines to reduce NOx emissions, DEF is essential to meeting increasingly stringent environmental standards. Demand for DEF continues to grow as regulatory requirements expand across transportation, construction, agriculture and industrial equipment fleets, while domestic supply remains constrained. The potential investment is designed to support multiple product forms and concentrations, enabling flexibility to serve diverse customer needs over time.
The project is expected to advance through detailed engineering and development phases before a final investment decision is made, which is targeted for the first half of 2027, with additional updates to be provided as engineering, commercial and financial milestones are achieved and regulatory approvals are secured. The Company anticipates a multi-year capital investment supporting attractive financial returns, aligned with the Company's long-term value creation objectives following potential target DEF plant startup in 2029.
About AdvanSix
AdvanSix is a vertically integrated chemistry company that produces essential materials for our customers across diverse end markets. Our value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at http://www.advansix.com.
Forward Looking Statements
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