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Area Development - Site Selection, Facility Planning and Workforce Development

CF Industries Constructing Low and Free Ammonia Plants in Ascension Parish, Louisiana

11/09/2020
CF Industries, the world’s largest producer of ammonia, plans investments to reduce greenhouse gas emissions across its network to enable the manufacture of carbon-free and low-carbon ammonia that will be used as a clean energy source at multiple locations including its plants in Ascension Parish, Louisiana.

According to company officials, Ascension Parish is central to company plans for stimulating hydrogen-based, clean-fuel consumption in the global economy.

Recently, the CF Industries board of directors authorized construction of a new green ammonia project at the company’s 1,400-acre site on the west bank of the Mississippi River in Ascension Parish. The company said it is also committed to dramatic reductions in carbon emissions across its global network, and intends to implement projects to capture and sequester carbon dioxide associated with the Louisiana site.

In addition to producing low-carbon ammonia, CF Industries will build a state-of-the-art facility in Donaldsonville to produce carbon-free or “green” ammonia. The company will install an electrolysis unit that will separate hydrogen from water, and then supply that carbon-free hydrogen to an existing ammonia plant to produce green ammonia. Engineering and design work is underway, with company officials estimating a $100 million capital investment and the ability to scale electrolysis capacity with demand.

“CF Industries is pleased to continue our long history of growing the capabilities of the Donaldsonville Nitrogen Complex, and putting it at the forefront of our efforts to support a clean energy economy,” CF Industries CEO Tony Will said. “Donaldsonville’s location, scale and flexibility will make it a critical part of clean hydrogen supply through the production of green and low-carbon ammonia. We look forward to working with Governor Edwards, as well as Ascension Parish and local leaders, as these initiatives progress.”

In 2016, CF Industries completed a $2.1 billion expansion in Donaldsonville described by local officials as the largest single capital investment in Ascension Parish history. With that investment and a project announced in September 2020 to enhance nitric acid production, CF Industries has grown its direct employment more than 40 percent to nearly 500 jobs, and the Donaldsonville complex supports a similar number of on-site contract employees.

“In order to meet our goal of reducing greenhouse gases (GHG) in the environment, we have to find not only carbon-neutral fuels but also ways to capture legacy carbon, particularly from emissions-intensive industries,” said Secretary Chuck Carr Brown of the Louisiana Department of Environmental Quality. “That legacy carbon, in the form of GHGs, has to be safely stored through sequestration to slow climate change. This new project by CF industries takes aim at both those goals. This is good news for Governor Edwards’ Climate Initiatives Task Force. More such projects will need to be developed, but CF’s ambitious plan is an example for others to follow.”

“The CF Industries strategy is an example of innovation in action,” Governor John Bel Edwards said. “Already the world’s largest nitrogen-based manufacturing site for the agricultural economy, the Donaldsonville complex will become a significant global player in reducing greenhouse gases, curbing the carbon impact on our environment, and producing carbon-free fuels. These are the kind of forward-thinking investments that position Louisiana as a next-generation energy leader.”

“CF Industries represents a key connection between Louisiana’s world-scale chemical processing industry and our state’s longstanding support of agribusiness,” said Secretary Don Pierson of Louisiana Economic Development. “We’ve witnessed the value this company brings to our state economy and workforce, and this latest commitment adds crucial vision to that value. LED looks forward to supporting the additional jobs and investment this initiative will deliver, and the environmental gains that will demonstrate our leadership in clean energy.”

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