CF Industries and JERA partner to build low-carbon ammonia plant in Louisiana

CF Industries Holdings, Inc. (NYSE: CF) has joined forces with Japan’s energy giant JERA Co., Inc. to sign a joint development agreement (JDA). This collaboration focuses on the potential construction of a greenfield low-carbon ammonia facility at the Blue Point Complex in Louisiana.

The planned facility, estimated to have a production capacity of approximately 1.4 million metric tons per year, represents a significant stride towards sustainable energy solutions. Under the agreement, JERA is considering acquiring a 48% ownership stake and has committed to purchasing over 500,000 metric tons of low-carbon ammonia annually. This procurement is aimed at supporting Japan’s growing demand for eco-friendly fuel alternatives.

The agreement builds on a prior memorandum of understanding between the two firms, where they expressed a mutual interest in developing and purchasing low-carbon ammonia. The companies anticipate making a final investment decision within the next year, with production commencement targeted for 2028.

Tony Will, President and CEO of CF Industries, expressed enthusiasm about the expanded partnership with JERA, emphasizing the project’s alignment with global decarbonization goals. “This initiative not only supports Japan’s environmental objectives but also showcases the vital role ammonia can play in decarbonizing industries that are traditionally difficult to abate,” stated Will.

Yukio Kani, Global CEO & Chair of JERA, highlighted the synergy between JERA’s commitment to innovative energy solutions and CF Industries’ ammonia production expertise. “This partnership underlines our joint commitment to pioneering a sustainable, affordable, and stable low-carbon ammonia supply chain,” said Kani.

In line with its decarbonization strategy, JERA plans to utilize the low-carbon ammonia produced at the new facility to replace coal in its thermal power plants. This shift is part of broader efforts to reduce CO2 emissions and includes JERA’s ongoing commercial-scale demonstration testing the use of fuel ammonia at its Hekinan Thermal Power Station.