CF Industries Holdings Inc, the global leader in ammonia production, has announced a landmark joint venture with Japan’s largest Energy Company, JERA Co. Inc. (JERA), and leading global investment and trading firm, Mitsui & Co., Inc. (Mitsui), to construct and operate the world’s largest low-carbon ammonia production facility in Louisiana.

The ambitious project, located at CF Industries’ Blue Point Complex in Ascension Parish, Louisiana, signifies a major step towards establishing a robust and scalable low-carbon ammonia value chain. The joint venture, with CF Industries holding a 40% stake, JERA 35%, and Mitsui 25%, will invest an estimated $4 billion in the state-of-the-art facility.

The plant will utilize autothermal reforming (ATR) technology coupled with a carbon dioxide (CO2) dehydration and compression unit to capture over 95% of the CO2 generated during the ammonia production process. With an annual nameplate capacity of approximately 1.4 million metric tons, the facility is poised to be the largest of its kind globally.

Pre-construction activities and engineering evaluations are slated to begin in 2025, with construction of the ammonia production facility expected to commence in 2026. The engineering, procurement, and module fabrication contract has been awarded to Technip Energies, who will collaborate with Topsoe, the licensor of their low carbon (blue) SynCOR ATR ammonia plant technology. Production of low-carbon ammonia is anticipated to commence in 2029.

In addition to the production facility, CF Industries will invest approximately $550 million to build and operate scalable infrastructure at the Blue Point site. This infrastructure will provide essential services to the joint venture, including product storage and loading capabilities, generating ongoing service revenue for CF Industries. CF Industries will also be responsible for the operation and maintenance of the ammonia production facility.

A critical component of this initiative is the sequestration of the captured carbon dioxide. 1PointFive, a subsidiary of Occidental specializing in carbon capture, utilization, and sequestration (CCUS), will transport and permanently store approximately 2.3 million metric tons of CO2 annually at its Pelican Sequestration Hub in Louisiana. This hub is currently under development and utilizes Class VI injection wells for permanent geological storage.

Tony Will, president and chief executive officer of CF Industries Holdings, Inc., expressed his enthusiasm for the partnership, stating, “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.”

Yukio Kani, JERA Global CEO and Chair, emphasized the strategic importance of the project for their decarbonization efforts, highlighting the U.S. as a “cornerstone market” for JERA’s sustainable energy initiatives. Mr. Kenichi Hori, President and Chief Executive Officer of Mitsui & Co., Ltd, echoed this sentiment, underscoring Mitsui’s commitment to establishing a global low-carbon ammonia value chain and lowering carbon emissions across various industries.