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Area Development - Site Selection, Facility Planning and Workforce Development

CF Industries Plans Ascension Parish, Louisiana, Compression-Dehydration Plant

08/08/2022
CF Industries plans to construct a CO2 compression and dehydration unit at its plant in Ascension Parish, Louisiana. The $198.5 million project is expected to create 12 jobs.

The investment is an effort to reduce carbon emissions at what the company says is the largest ammonia production facility in the world. The project is the second this year by a Louisiana company aimed at reducing existing greenhouse gas emissions, following Cleco’s announcement to add carbon capture and sequestration to its Boyce, Louisiana, power plant.

“We believe that ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia for this purpose will grow meaningfully in the coming years,” said Tony Will, president and CEO, CF Industries Holdings, Inc. “We are pleased to be able to leverage our previous investments in Louisiana to add CO2 processing technology to our Donaldsonville complex that will enable a significant volume of blue ammonia production by the middle of the decade. This will position CF Industries and Louisiana at the forefront of this emerging global market, ” he added.

CF Industries’ application for participation in the State of Louisiana’s Industrial Tax Exemption program has received Board of Commerce and Industry and all necessary local government entity approvals. The company is also expected to utilize the state’s performance-based Quality Jobs program.

“To achieve our goal of net zero emissions by 2050, Louisiana must simultaneously increase new clean energy investments and decrease current greenhouse gas emissions,” Governor John Bel Edwards said. “CF Industries’ plan to add carbon capture capabilities to its Donaldsonville plant accomplishes that, while stimulating economic activity and creating high-paying jobs in Ascension Parish. We applaud the company’s commitment to sustainability and encourage other industry leaders to recognize that decarbonization is good for both our economy and our climate.”

CF Industries estimates this project would enable up to 6,000 tons of processed CO2 per day, as much as 2 million tons per year, to be captured, liquefied and transported via pipeline to a sequestration site yet to be determined. This process would enable the company to produce up to 1.7 million tons of blue ammonia annually. A chemical process is considered “blue” when CO2 emissions are captured before their release into the air, making the process more carbon-neutral. Blue ammonia is seen as a key clean energy source for the energy transition since its components, nitrogen and hydrogen, do not emit carbon when combusted.

"This investment by CF Industries further exemplifies why Ascension Parish is an ideal location for the production of sustainable, clean technologies for both energy and emissions reductions," said Ascension Economic Development Corporation President & CEO Kate MacArthur.

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