CF Industries Holdings has announced the formation of a joint venture with JERA Co., Ltd. and Mitsui & Co., Inc., to construct, produce, and offtake low-carbon ammonia.
As stated, the ammonia production facility’s construction is scheduled to begin in 2026, with production set to commence in 2029. Pre-construction activities and engineering evaluations will begin in 2025.
The project will utilize advanced CCS (carbon capture and sequestration) technologies to capture more than 95% of the CO2 generated during ammonia production.
The facility will capture 2.3 million metric tons of CO2 annually, which will be permanently sequestered by 1PointFive at its Pelican Sequestration Hub.
Key highlights:
- Ownership and Structure: CF Industries will hold 40% of the joint venture, JERA 35%, and Mitsui 25%.
- Ammonia Production Facility: The joint venture will build an ammonia production facility at CF Industries’ Blue Point Complex in Louisiana. The facility will use autothermal reforming (ATR) technology along with carbon dioxide (CO2) capture for sequestration. The estimated cost for this project is $4 billion, with each partner funding based on their ownership percentage.
- Production Capacity: The new facility will have an annual production capacity of 1.4 million metric tons, making it the world’s largest ammonia production facility by nameplate capacity. Production is expected to start in 2029.
- Infrastructure Investment: CF Industries will invest approximately $550 million to build scalable infrastructure at the Blue Point site, including storage and loading services for the ammonia production facility.
- Carbon Sequestration: The joint venture will capture approximately 2.3 million metric tons of CO2 annually. 1PointFive, a subsidiary of Occidental, will handle the transportation and permanent sequestration of CO2 at its Pelican Sequestration Hub in Louisiana.
Our joint venture 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.
…said Tony Will, President and CEO, CF Industries.
