AdvanSix signs deal to assess diesel exhaust fluid plant expansion

AdvanSix Inc. (NYSE: ASIX) entered into a process design and licensing agreement to evaluate expanding its ammonia platform at its Hopewell, Virginia facility for domestic diesel exhaust fluid manufacturing.

The company partnered with Stamicarbon, a nitrogen technology licensor of Nextchem, to provide process design and licensed technology for the potential expansion. The project would utilize Stamicarbon's NX STAMI Urea technology to create a urea melt plant integrated with a diesel exhaust fluid production unit.

Diesel exhaust fluid is an additive that reduces NOx emissions from diesel engines and is required for all modern diesel engines to meet environmental standards. AdvanSix stated that demand continues growing due to regulatory requirements across transportation, construction, agriculture and industrial equipment sectors, while domestic supply remains limited.

The Hopewell site currently produces ammonia, carbon dioxide and high-purity water, which are the required inputs for diesel exhaust fluid production. The facility also manufactures ammonium sulfate fertilizer.

"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," said Erin Kane, president and CEO of AdvanSix.

The project represents the first application where all urea melt production would be dedicated exclusively to diesel exhaust fluid manufacturing, according to the companies.

AdvanSix expects the project to advance through detailed engineering phases before making a final investment decision, targeted for the first half of 2027. The company anticipates a multi-year capital investment with potential plant startup in 2029.

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