CF Industries asks U.S. to press EU on ammonia carbon default

CF Industries has asked the U.S. Trade Representative to press the European Union to lower the carbon border default value it applies to U.S. ammonia. The company argues the figure overstates emissions from American plants.

In comments submitted to the USTR on the Carbon Border Adjustment Mechanism, CF puts the EU default for U.S. ammonia at 3.41 metric tons of CO2-equivalent per ton. It cites a production-weighted analysis of U.S. government data showing 2.14 tons, about 37% lower. That estimate does not credit the carbon capture project at its Donaldsonville, Louisiana, complex, which CF says can capture up to 2 million tons of CO2 a year.

Trade data back up the complaint. U.S. UAN exports to the EU totaled 42,000 metric tons from January through September 2026, an 88% drop from the prior three-year average, according to the U.S. Census Bureau. Ammonia exports were about 16% below their three-year average, at roughly 202,000 metric tons.

If the EU does not change the value, CF wants USTR to consider other trade actions. The company also warned against tariffs on equipment used to repair or modernize U.S. ammonia and nitrogen plants.

Europe’s gas costs are adding pressure on the same producers. Soaring natural gas costs are squeezing ammonia makers that already face carbon charges on imports.

Source: Argus Media