CF Industries eyes new carbon capture ammonia complex

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Energy company CF Industries is mulling plans for a new $2 billion blue ammonia manufacturing site in Ascension Parish, LA, to be operated jointly with Mitsui & Co. Ltd., a statement released by Louisiana Economic Development ( LED) announced this week.

The facility would use carbon capture and sequestration to reduce carbon emissions in ammonia production processes. The main components of blue ammonia, nitrogen and hydrogen, do not emit carbon when burned.

“This massive investment proposed by CF Industries would create well-paying jobs and strengthen Louisiana’s position as a leader in the clean energy transition,” Governor John Bel Edwards said in a statement. “This would be another big step toward our goal of making Louisiana carbon neutral by 2050. We thank CF Industries for their continued commitment to Louisiana and look forward to working with the company’s economic development leaders, of the parish and the region to move the project forward. ”

The companies intend to conduct an Initial Engineering Design Study (FEED) when the site and technology provider for the installation is finalized. A final investment decision is expected in 2023. Construction will take approximately four years.

“CF Industries and Mitsui believe that blue ammonia will play a pivotal role in accelerating the global transition to clean energy and our planned blue ammonia production facility is an important step towards that future,” Tony Will, President and CEO, CF Industries Holdings Inc., said in the statement. “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 we are looking at further capacity growth. We look forward to continuing to work with them as we continue to evaluate our proposed blue ammonia production facility. »

Under the terms of the partnership, CF Industries will own 52% of the facility and Mitsui will own a 48% interest. Mitsui will oversee the marketing and distribution of blue ammonia in the Asian market. In turn, CF Industries will operate and maintain the facility.

The demand for clean energy is accelerating due to climate change concerns.

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