CF Industries and JERA Announce Joint Development Agreement to Develop Greenfield Low-Carbon Ammonia Production Capacity in the U.S.

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CF Industries Holdings, Inc., the world’s largest producer of ammonia, has announced a groundbreaking partnership with JERA Co., Inc., Japan’s largest energy company, to explore the development of greenfield low-carbon ammonia production capacity at CF Industries’ Blue Point Complex in Louisiana.

The joint development agreement (JDA) between CF Industries and JERA sets the stage for the evaluation of a potential joint venture agreement to construct an approximately 1.4 million metric ton capacity low-carbon ammonia plant. Under the terms of the agreement, JERA is considering a 48% ownership stake in the project, along with a commitment to procure over 500,000 metric tons of low-carbon ammonia annually to address the growing demand for low-carbon fuels in Japan.

This collaboration builds upon a memorandum of understanding previously signed by JERA and CF Industries, signaling their shared commitment to exploring joint project development and sales and purchase of low-carbon ammonia. The ultimate goal is to reach a final investment decision on the proposed project within a year, with production anticipated to commence in 2028.

Tony Will, President and CEO of CF Industries Holdings, Inc., expressed enthusiasm for the expanded partnership with JERA, highlighting the significance of their joint efforts in advancing decarbonization initiatives. Will emphasizes the potential of low-carbon ammonia to contribute significantly to the decarbonization goals of hard-to-abate industries, positioning ammonia as a key energy source in the global transition to sustainable practices.

Yukio Kani, Global CEO & Chair of JERA, echoed Will’s sentiments, emphasizing the importance of partnership and innovation in addressing the world’s energy challenges. Kani underscored JERA’s dedication to low-carbon fuel development and CF Industries’ expertise as a leader in ammonia production, expressing confidence in their ability to make tangible progress toward realizing a low-carbon ammonia value chain.

As part of its decarbonization strategy, JERA intends to replace coal with low-carbon clean ammonia in its existing thermal coal power plants, with ongoing efforts including the world’s first commercial-scale demonstration test of fuel ammonia substitution at its Hekinan Thermal Power Station.

The partnership between CF Industries and JERA represents a significant step forward in the pursuit of sustainable energy solutions, leveraging expertise and resources to drive meaningful impact in the global transition to a low-carbon future.