CF Industries Holdings Inc., has announced that it has formed a joint venture (JV) with JERA Co. and Mitsui & Co., Inc. for the construction, production, and offtake of low-carbon ammonia.
“CF Industries is proud to partner with global leaders JERA and Mitsui to build a low-carbon ammonia production facility,” said Tony Will, President and CEO of CF Industries Holdings, Inc. “Our joint venture (JV) represents tangible progress towards building a reliable and affordable low-carbon ammonia value chain to meet what we expect to be robust global demand for low-carbon ammonia for both traditional and new applications.”
Yukio Kani, JERA Global CEO and Chair, added: “Collaboration and partnership are at the heart of JERA’s strategy to achieve our decarbonisation goals. This Blue Point project is a testament to the alliances we are building to advance low-carbon solutions. The US remains a cornerstone market for JERA, and this initiative underscores our commitment to expanding our presence with diversified and sustainable energy projects. As we move forward, we will continue to accelerate the availability of low-carbon fuels and develop their supply chains, driving progress toward a more stable and cleaner energy future.”
Kenichi Hori, President and CEO of Mitsui & Co., Ltd, commented: “We are excited to announce the achievement of this milestone together with CF Industries and JERA to invest in this large scale low-carbon ammonia project in Louisiana, US. Mitsui will establish a low-carbon ammonia value-chain worldwide by leveraging its presence in the US gas value chain. We aim to lower carbon emissions across various industries through investment in projects of this kind.”
Greenfield low-carbon ammonia capacity construction overview
The companies estimate that the cost of the low-carbon ATR ammonia production facility with carbon capture and storage (CCS) technologies will be approximately US$4 billion. Approximately half of the estimated cost is related to materials that will be imported to the US, with the majority of imported materials expected to arrive in Louisiana, US, in three years. The companies will divide the cost of the ammonia production facility engineering, procurement, and construction (EPC) according to their ownership percentage.
Pre-construction activities and engineering evaluations will begin in 2025 at CF Industries’ Blue Point Complex in Ascension Parish, Louisiana, US. Construction of the ammonia production facility is expected to begin in 2026, with low-carbon ammonia production expected in 2029.
The ammonia production facility is designed with a capacity of approximately 1.4 million tpy and is expected to capture more than 95% of carbon dioxide generated from the production of ammonia. CF Industries will have operations and maintenance responsibility under a contract with the JV.
Additionally, CF Industries will build and operate scalable infrastructure at the Blue Point, US, site to supply the ammonia production facility with services including product storage and loading. CF Industries will invest approximately US$550 million for these facilities and receive ongoing services revenue from the JV ammonia production facility.
Carbon capture and sequestration overview
1PointFive will provide transportation and sequestration of CO2 for the joint venture. The ammonia production facility is expected to capture, compress, and dehydrate approximately 2.3 million tpy of CO2. 1PointFive will then transport the CO2 and permanently sequester it in a Class VI well at its Pelican Sequestration Hub in Louisiana, US, which has taken final investment decision (FID) and is moving through the development process. 1PointFive is leveraging Occidental’s experience of managing and safely storing up to 20 million tpy of CO2.
“CF Industries and its partners’ confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organisations to become their commercial sequestration partner,” said Jeff Alvarez, President of 1PointFive Sequestration. “By working together, we can unlock the potential of US manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth.”
EPC partners
The JV has awarded the engineering, procurement, and module fabrication contract to Technip Energies, which will perform engineering and fabrication of the equipment and modules required for the low-carbon ammonia production facility. Technip Energies will work with Topsoe, to which the joint venture awarded the process license for their low carbon (blue) SynCOR ATR ammonia plant technology.