CF Industries and POET to Showcase Low-Carbon Fertilizer in Corn Production for Ethanol Efficiency

On July 15, 2024, CF Industries Holdings, Inc. (NYSE: CF), a prominent global manufacturer of hydrogen and nitrogen products and the largest producer of ammonia worldwide, partnered with POET LLC, the largest producer of biofuels and a leader in sustainable bioproducts, to launch a pilot program using low-carbon ammonia fertilizer. This collaboration aims to lower the carbon intensity of corn production and ethanol. Anticipated growth in demand for low-carbon ethanol aligns with stringent low-carbon fuel standards.

Ammonia is widely applied as a fertilizer in U.S. corn production, but its conventional production process is high in emissions. Consequently, ammonia production significantly adds to the lifecycle carbon intensity of corn and ethanol production. By using low-carbon ammonia for corn cultivation, ethanol's carbon intensity can potentially decrease by up to 10 percent. The companies aim to begin using low-carbon ammonia in autumn 2024, with additional applications planned for spring 2025, resulting in the first harvest-ready crop by autumn 2025.

Bert Frost, Executive Vice President of Sales, Supply Chain, and Market Development at CF Industries, expressed enthusiasm about the collaboration with POET, emphasizing the advancement toward a low-carbon ethanol value chain that connects low-carbon fertilizers from farmers to ethanol production. He highlighted that fertilizers with reduced carbon intensity offer a measurable and certifiable approach to reducing the carbon footprint of bioethanol inputs. Frost looks forward to showcasing these advantages, benefiting not only ethanol production but also corn growers.

Christian McIlvain, President of POET Grain, commented, "At POET, we are committed to continually enhancing value for our producers, and our collaboration with CF Industries aligns perfectly with this goal. We aim to educate and equip our corn producers about the carbon impact of their grain. This initiative offers producers a choice of low-carbon ammonia and empowers them with insights into their farm’s carbon footprint and its implications for their grain’s value."

The companies plan to collaboratively establish a low-carbon fertilizer supply chain to monitor, verify, and certify reductions in carbon intensity. This begins with the production of low-carbon ammonia at CF Industries’ Donaldsonville Complex in Louisiana, extending through ethanol production at POET’s facilities in Bingham Lake, MN, Emmetsburg, IA, Fairmont, NE, and North Manchester, IN. The initiative involves coordinating supply strategies with fertilizer retailers that serve farms supplying corn to these POET bioprocessing plants, while also exploring financial opportunities for farmers adopting this low-carbon fertilizer. For more details, producers can contact their local POET grain merchandiser.

For the fall 2024 and spring 2025 applications of low-carbon ammonia in the demonstration project, the companies will utilize green ammonia manufactured at CF Industries’ Donaldsonville Complex. Green ammonia is produced using hydrogen derived from an electrolysis-based process that emits no carbon dioxide, maintaining the same properties as conventional ammonia. CF Industries has recently completed the installation of a 20MW electrolyzer at the Donaldsonville Complex, and start-up is expected soon. The company plans to acquire renewable energy certificates to support the electrolyzer start-up and enable green ammonia production. CF Industries anticipates additional supplies of low-carbon ammonia from 2025 onward, coinciding with the launch of a large-scale carbon capture and sequestration initiative at the Donaldsonville Complex.