The proposed export-oriented facility would be developed jointly by CF Industries and Mitsui & Co., Ltd. By employing carbon capture and sequestration, the ammonia production process would result in significantly lower carbon emissions than conventional ammonia processes, qualifying it as a “blue” process.
“CF Industries and Mitsui believe that blue ammonia will play a pivotal role in accelerating the world’s transition to clean energy and that our proposed blue ammonia production facility is an important step towards this future,” said Tony Will, president and CEO, CF Industries Holdings, Inc. “CF Industries has long appreciated the partnership we have had with the State of Louisiana and Ascension Parish, both as we have expanded our operations over the years and now as we decarbonize our production processes and consider new capacity growth. We look forward to working with them further as we continue to evaluate our proposed blue ammonia production facility,” he added.
A FEED study typically takes 9-12 months from the start date to complete. A final investment decision by the companies is expected to occur in 2023. Construction and commissioning of a new world-scale capacity ammonia plant typically takes approximately four years from that point.
“This massive proposed investment from CF Industries would create good-paying jobs and strengthen Louisiana’s position as a leader in the clean energy transition,” Governor John Bel Edwards said. “This would be another big step toward our goal of making Louisiana carbon-neutral by 2050. We thank CF Industries for its continued commitment to Louisiana, and look forward to working with company, parish and regional economic development leaders to move the project forward.”
The State of Louisiana is offering CF Industries a competitive incentive package that includes the services of LED FastStart. Additionally, the company would be eligible for a performance-based award of up to $6 million to be paid out over four years to reimburse verified project development and infrastructure expenditures. The company is also expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“With CF Industries’ incredible proposed project, Louisiana’s Capital Region shows it is ready to be a global leader in transitional energy,” added Adam Knapp, president and CEO of the Baton Rouge Area Chamber. “We have seen over $16 billion in clean energy investments announced since 2020 in our region. We extend our appreciation to CF Industries’ leadership team for their continued commitment to Donaldsonville and Ascension Parish, and to parish officials and partners for their work to make this happen for Louisiana.”
Blue ammonia is seen as a key clean energy source since its components, nitrogen and hydrogen, do not emit carbon when combusted.
“Together with our partners, Ascension Economic Development Corporation is ready to assist CF Industries and Mitsui & Co. with this world-class energy transition project,” Kate MacArthur, President & CEO said. “Our area continues to grow in the clean hydrogen/ammonia and carbon sequestration field and this project would be a remarkable addition.”
CF Industries Holdings, Inc. is an American manufacturer and distributor of agricultural fertilizers, including ammonia, urea, and ammonium nitrate products, based in Deerfield, Illinois. The company was founded in 1946 as the Central Farmers Fertilizer Company. CF Industries is the world’s largest producer of ammonia, with a global manufacturing and distribution network.