Insider Brief
- CF Industries, JERA, and Mitsui are investing $4 billion to build the world’s largest low-carbon ammonia production plant in Louisiana.
- Using autothermal reforming and carbon capture, the joint venture expects to sequester 2.3 million metric tons of CO2 annually, with 1PointFive handling transportation and underground storage.
- The facility will produce 1.4 million metric tons of low-carbon ammonia per year starting in 2029, with CF Industries operating the site and investing $550 million in supporting infrastructure.
Joint Venture Details and Ownership Structure
CF Industries, JERA and Mitsui have formed a joint venture to build a $4 billion low-carbon ammonia plant in the U.S.
The company announced the joint venture will build in Louisiana what is expected to become the world’s largest low-carbon ammonia production facility by capacity, using carbon capture technologies to eliminate most emissions from the ammonia-making process. CF Industries will hold a 40% stake in the project, JERA 35%, and Mitsui 25%.
“CF Industries is proud to partner with global leaders JERA and Mitsui to build the leading low-carbon ammonia production facility in the world,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. in a statement. “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.”
Advanced Technology for Low-Carbon Ammonia Production
Located at CF Industries’ Blue Point Complex, the new plant will use autothermal reforming to produce ammonia, a process that creates hydrogen and carbon dioxide from natural gas. The carbon dioxide—an estimated 2.3 million metric tons annually—will be captured, dehydrated, compressed, and transported for permanent underground storage by 1PointFive, a subsidiary of Occidental Petroleum.
Yukio Kani, JERA Global CEO and Chair noted, “The U.S. remains a cornerstone market for JERA, and this initiative underscores our long-term commitment to expanding our presence with diversified and sustainable energy projects. As we move forward, we will continue to accelerate the availability of low-carbon fuels and develop their supply chains, driving meaningful progress toward a more stable and cleaner energy future.”
The Role of Low-Carbon Ammonia in Decarbonizing Energy and Industry
Low-carbon ammonia, a compound of nitrogen and hydrogen, is emerging as a key player in decarbonizing heavy industry and power generation, particularly in markets like Japan and Europe where demand for cleaner fuels is rising. The Louisiana facility is expected to produce 1.4 million metric tons per year and begin operations in 2029.
“Mitsui will establish a low-carbon ammonia value-chain worldwide by leveraging its presence in the US gas value chain from natural gas to chemicals including this project, and our strength and track record in the global trading of ammonia,” Kenichi Hori, President and Chief Executive Officer of Mitsui & Co., Ltd, pointed out. “We aim to lower carbon emissions across various industries through investment in projects of this kind.”
The project also benefits from federal incentives. Under Section 45Q of the U.S. tax code, companies receive tax credits for each ton of carbon dioxide that is permanently sequestered, helping offset costs and attract investment.
Project Timeline and Operations Plan
Engineering and fabrication work will be led by Technip Energies, with licensing support from Topsoe, a Denmark-based ammonia technology provider. Pre-construction activity is scheduled to begin in 2025, with construction starting in 2026 and production expected in 2029. CF Industries will operate and maintain the facility and invest an additional $550 million in scalable infrastructure at the site for product storage and loading.
