CF Industries, JERA To Explore Development Of Greenfield Low-carbon Ammonia Production Capacity

(RTTNews) - CF Industries Holdings Inc. (CF), a producer of ammonia, and JERA Co., Inc. (JERA), an energy company in Japan, said that they have executed a joint development agreement to explore the development of greenfield low-carbon ammonia production capacity at CF Industries' Blue Point Complex in Louisiana.

The agreement will guide JERA and CF Industries' evaluation of a joint venture agreement to build an about 1.4 million metric ton capacity low-carbon ammonia plant. JERA is contemplating a 48% ownership stake in the project as well as an agreement to procure more than 500,000 metric tons of low-carbon ammonia annually to meet demand for low-carbon fuels in Japan.

JERA and CF Industries aim to reach a final investment decision on the proposed project within a year for commencing production in 2028.

JERA plans to replace coal with low-carbon clean ammonia in its existing thermal coal power plants to reduce CO2 emissions. JERA is currently conducting the world's first commercial-scale demonstration test of fuel ammonia substitution (20% of heating value) at its Hekinan Thermal Power Station.