CF Industries Form JV to Build $4B Low-Carbon Ammonia Project in Louisiana

Louisiana’s Ascension Parish is set to become home to one of the world’s largest low-carbon ammonia facilities after CF Industries Holdings (CFI) and partners reached a final investment decision (FID) for a $4 billion project.

The FID, a joint venture (JV) investment with Japan’s JERA Co. and Mitsui & Co., was announced April 8 alongside news that Occidental Petroleum’s 1PointFive secured an agreement to capture CO₂ from the ammonia production facility and store it at the CCS company’s Pelican Sequestration Hub, which also reached FID.

Companies have been pursuing low-carbon ammonia production projects in an effort to lower emissions. Comprised of nitrogen and hydrogen, ammonia is commonly used in fertilizer production; however, low-carbon ammonia can also be used as a fuel in power generation or marine transportation, or as a hydrogen carrier.

“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,” CF Industries CEO Tony Will said.

Located at the ammonia producer’s Blue Point Complex, the autothermal reforming ammonia production facility will have an annual capacity of about 1.4 million metric tons (MMmt), making it the largest such facility by nameplate capacity in the world when it comes online in 2029, CF Industries said. The facility will be located at the RiverPlex MegaPark, the same industrial park where Hyundai Steel Co. said in March it plans to build its nearly $6 billion clean steel manufacturing facility.

Ammonia offtake will be handled by CFI, JERA and Mitsui, while 1PointFive will wrangle the CO₂. As part of a 25-year offtake agreement, 1PointFive will transport and sequester about 2.3 MMmt of CO₂ annually at its Pelican Sequestration Hub in Livingston Parish, Louisiana.

1PointFive Sequestration President Jeff Alvarez said the agreement validates the company’s CO₂ management expertise and confidence in the hub.

“By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth,” Alvarez said.

The ammonia facility will have a CO₂ dehydration and compression unit to prepare the captured CO₂ for transportation and sequestration. 1PointFive’s hub is located on land leased from Weyehaeuser Co. and is estimated to store up to 6 MMmt of CO₂ annually, which is equivalent to the annual emissions of 1.3 million passenger vehicles, the company said on its website. Plans are for the hub to include between five and six CO₂ injection wells and eight to 10 CO₂ monitoring wells.

A technical review of the hub by Louisiana Department of Energy and Natural Resources began April 8, according to the department’s Class VI well application tracker online.

“Louisiana is experiencing an unprecedented wave of momentum that is fostering innovation, creating opportunities and putting our state on the global stage,” said Louisiana Economic Development Secretary Susan B. Bourgeois. “When forward-thinking manufacturing leaders like CF Industries make investments in new energy technology, the world sits up and takes notice.”

After the JV is formed, CF Industries will hold a 40% ownership stake in the facility; JERA, 35% and Mitsui, 25%. CF Industries will be the facility’s operator.