CF Industries Holdings, Inc., the world’s largest producer of ammonia, announced that it has formed a joint venture with JERA Co., Inc. , Japan’s largest energy company, and Mitsui & Co., Inc. (Mitsui), a leading global investment and trading company, for the construction, production and offtake of low-carbon ammonia.
Highlights
Joint Venture Structure: Upon formation, CF Industries will hold 40% ownership, JERA 35% ownership, and Mitsui 25% ownership in the joint venture.(1) Low-Carbon Ammonia Production Facility Construction: The joint venture will construct at CF Industries’ Blue Point Complex in Louisiana an autothermal reforming (ATR) ammonia production facility with a carbon dioxide (CO2) dehydration and compression unit at the site to prepare captured CO2 for transportation and sequestration. The estimated cost for the ammonia production facility is approximately $4 billion, which will be funded by each partner according to their ownership percentage. Low-Carbon Ammonia Production Capacity: The low-carbon ammonia production facility will have an annual nameplate capacity of approximately 1.4 million metric tons, which would be the largest ammonia production facility by nameplate capacity in the world. Production of low-carbon ammonia is expected to begin in 2029. Scalable Infrastructure: CF Industries will build and operate scalable infrastructure at the Blue Point site to supply the ammonia production facility with services, including product storage and loading. CF Industries will invest approximately $550 million for these facilities and receive ongoing services revenue from the joint venture ammonia production facility. Operations: CF Industries will be responsible for the operation and maintenance of the ammonia production facility.Ammonia Offtake: Product offtake will be handled independently by the three companies according to their ownership percentage. Sequestration of Carbon Dioxide (CO2): 1PointFive, a carbon capture, utilization, and sequestration (CCUS) company and subsidiary of Occidental (NYSE: OXY), will transport and sequester approximately 2.3 million metric tons of CO2 annually at 1PointFive’s Pelican Sequestration Hub in Louisiana.
Image of CF Industries
Press release https://tinyurl.com/yxt87aj9
