The facility could have an annual nameplate capacity of about 1.4 million metric tons
CF Industries Holdings, the world’s largest producer of ammonia, has began a joint project with JERA Co. (JERA), Japan’s largest energy enterprise, and Mitsui & Co. (Mitsui), a main global funding and trading enterprise, for the construction, manufacturing and offtake of low-carbon ammonia.
The joint project will build at CF Industries’ Blue Point Complex in Louisiana an autothermal reforming (ATR) ammonia manufacturing facility with a carbon dioxide (CO2) dehydration and condensation unit at the site to prepare captured CO2 for transportation and sequestration. The calculated cost for the ammonia manufacturing facility is about $4 billion, as a way to be funded by each partner according to their ownership percentage.
CF Industries will build and manage scalable infrastructure at the Blue Point site to deliver the ammonia manufacturing facility with services, consisting of product storage and loading. CF Industries will fund about $550 million for those facilities and acquire ongoing services sales from the joint project ammonia manufacturing facility.
CF Industries will be reliable for the operation and managing of the ammonia manufacturing facility and product offtake can be handled independently by three enterprises consistent with their ownership percentage.
Upon formation, CF Industries will hold 40% ownership, JERA 35% ownership, and Mitsui 25% ownership within the joint project.
“CF Industries is proud to partner with global leaders JERA and Mitsui to build the main low-carbon ammonia manufacturing facility in the world,” stated Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Our joint project represents tangible development closer to constructing a reliable and affordable low-carbon ammonia value chain to meet what we anticipated to be sturdy global requirement for low-carbon ammonia for both traditional and new applications.”
Yukio Kani, JERA Global CEO and Chair stated, “Collaboration and partnership are at the heart of JERA’s method to attain our decarbonization aims. This Blue Point project is a testimony to the robust alliances we are constructing to promote low-carbon solutions. The U.S. Remains a cornerstone market for JERA, and this initiative underscores our long-time period commitment to increasing our presence with diversified and sustainable energy ventures. As we move ahead, we will continue to boost up the availability of low-carbon fuels and grow their supply chains, driving meaningful progress towards a more stable and cleaner energy future.”
Kenichi Hori, President and Chief Executive Officer of Mitsui & Co., Ltd, stated, “We are excited to declare the success of this significant milestone together with CF Industries and JERA to invest in this large-scale low-carbon ammonia venture in Louisiana. Mitsui will set up a low-carbon ammonia value-chain worldwide by way of using its presence within the US gas value chain from natural gas to chemicals including this venture, and our strength and track report in the global trading of ammonia. We aim to lower carbon emissions throughout diverse industries through funding in ventures of this kind.”
The joint project has granted the engineering, procurement, and module fabrication contract to Technip Energies, on the way to perform engineering and fabrication of the equipment and modules needed for the low-carbon ammonia manufacturing facility. Technip Energies will work with Topsoe, to which the joint project awarded the procedure license for their low carbon (blue) SynCOR ATR ammonia plant technology.
