JERA and CF Industries Holdings sign ammonia production deal

The project, with an annual capacity of approximately 1.4 million tonnes, is planned to be located at CF Industries’ Blue Point Complex in Louisiana. Under the agreement, JERA is considering a 48% ownership stake in the project and has committed to procuring more than 500,000 tonnes of ammonia annually to meet the demand for low carbon fuels in Japan. The companies aim to reach a final investment decision within a year for production to commence in 2028.

This agreement builds on the January 2023 Memorandum of Understanding (MOU) between JERA and CF Industries, initiated to explore joint project development and sales & purchase of clean ammonia.

The MOU followed a tender process for the procurement of clean ammonia conducted by JERA in February 2022 and reflects JERA’s progress in replacing coal with ammonia at its Hekinan Thermal Power Station in Japan.

JERA is committed to expanding renewable energy and developing zero-emission thermal power technologies. The company has set a goal of achieving net zero CO2 emissions from its domestic and overseas businesses by 2050. Yukio Kani, Global CEO & Chair of JERA, expressed optimism about the partnership, emphasizing the importance of commitment and partnership in finding solutions to the world’s energy issues.

Meanwhile, Tony Will, president and CEO of CF Industries, highlighted the significance of JERA’s projects in demonstrating the potential of ammonia to meet the decarbonization goals of hard-to-abate industries and expressed eagerness to work closely with JERA and other stakeholders in Japan as regulatory requirements and government incentives regarding low-carbon clean ammonia are finalized.

To remind, the Energy Market Authority (EMA) and JERA have also signed a Memorandum of Understanding (MoU) to cooperate on mutually beneficial areas in liquefied natural gas (LNG) procurement and supply chains for Singapore and Japan.