CF Industries Announces Joint Venture with JERA Co., Inc., and Mitsui & Co., Inc., for Production and Offtake of Low-Carbon Ammonia
CF Industries has formed a joint venture with JERA and Mitsui to build the world's largest low-carbon ammonia plant in Louisiana. The facility will have an annual capacity of 1.4 million metric tons, with production expected to begin in 2029.
The joint venture ownership structure comprises CF Industries (40%), JERA (35%), and Mitsui (25%). The estimated cost for the ammonia production facility is $4 billion, funded according to ownership percentages. CF Industries will invest an additional $550 million in infrastructure and handle operations and maintenance.
The facility will capture >95% of CO2 emissions, with approximately 2.3 million metric tons of CO2 annually being transported and sequestered by 1PointFive at their Pelican Sequestration Hub in Louisiana. The project is expected to qualify for Section 45Q tax credits for carbon sequestration.
CF Industries ha formato una joint venture con JERA e Mitsui per costruire il più grande impianto di ammoniaca a basse emissioni di carbonio al mondo in Louisiana. L'impianto avrà una capacità annuale di 1,4 milioni di tonnellate metriche, con la produzione che dovrebbe iniziare nel 2029.
La struttura di proprietà della joint venture comprende CF Industries (40%), JERA (35%) e Mitsui (25%). Il costo stimato per l'impianto di produzione di ammoniaca è di 4 miliardi di dollari, finanziato in base alle percentuali di proprietà. CF Industries investirà ulteriori 550 milioni di dollari in infrastrutture e gestirà le operazioni e la manutenzione.
L'impianto catturerà oltre il 95% delle emissioni di CO2, con circa 2,3 milioni di tonnellate metriche di CO2 che verranno trasportate e sequestrate da 1PointFive presso il loro Pelican Sequestration Hub in Louisiana. Si prevede che il progetto possa qualificarsi per i crediti d'imposta della Sezione 45Q per il sequestro del carbonio.
CF Industries ha formado una empresa conjunta con JERA y Mitsui para construir la planta de amoníaco de bajo carbono más grande del mundo en Louisiana. La instalación tendrá una capacidad anual de 1.4 millones de toneladas métricas, con la producción prevista para comenzar en 2029.
La estructura de propiedad de la empresa conjunta comprende CF Industries (40%), JERA (35%) y Mitsui (25%). El costo estimado para la instalación de producción de amoníaco es de 4 mil millones de dólares, financiado según los porcentajes de propiedad. CF Industries invertirá otros 550 millones de dólares en infraestructura y se encargará de las operaciones y el mantenimiento.
La instalación capturará más del 95% de las emisiones de CO2, con aproximadamente 2.3 millones de toneladas métricas de CO2 que serán transportadas y secuestradas por 1PointFive en su Pelican Sequestration Hub en Louisiana. Se espera que el proyecto califique para créditos fiscales de la Sección 45Q para el secuestro de carbono.
CF Industries는 JERA 및 Mitsui와 함께 루이지애나에 세계 최대 규모의 저탄소 암모니아 공장을 건설하기 위한 합작 투자를 형성했습니다. 이 시설은 연간 140만 미터톤의 생산 능력을 가지며, 2029년부터 생산이 시작될 것으로 예상됩니다.
합작 투자 소유 구조는 CF Industries (40%), JERA (35%), Mitsui (25%)로 구성되어 있습니다. 암모니아 생산 시설의 추정 비용은 40억 달러로, 소유 비율에 따라 자금이 조달됩니다. CF Industries는 추가로 5억 5천만 달러를 인프라에 투자하고 운영 및 유지 관리를 담당할 것입니다.
이 시설은 CO2 배출량의 95% 이상을 포집하며, 연간 약 230만 미터톤의 CO2가 루이지애나의 Pelican Sequestration Hub에서 1PointFive에 의해 운반 및 격리될 것입니다. 이 프로젝트는 탄소 격리를 위한 45Q 세금 공제를 받을 것으로 예상됩니다.
CF Industries a formé une coentreprise avec JERA et Mitsui pour construire la plus grande usine d'ammoniac à faible teneur en carbone au monde en Louisiane. L'installation aura une capacité annuelle de 1,4 million de tonnes métriques, avec une production prévue pour commencer en 2029.
La structure de propriété de la coentreprise se compose de CF Industries (40 %), JERA (35 %) et Mitsui (25 %). Le coût estimé de l'installation de production d'ammoniac est de 4 milliards de dollars, financé selon les pourcentages de propriété. CF Industries investira également 550 millions de dollars dans les infrastructures et s'occupera des opérations et de la maintenance.
L'installation capturera plus de 95 % des émissions de CO2, avec environ 2,3 millions de tonnes métriques de CO2 qui seront transportées et séquestrées par 1PointFive dans leur Pelican Sequestration Hub en Louisiane. Le projet devrait être éligible aux crédits d'impôt de la section 45Q pour le séquestration du carbone.
CF Industries hat ein Joint Venture mit JERA und Mitsui gegründet, um die größte Anlage für kohlenstoffarmen Ammoniak der Welt in Louisiana zu bauen. Die Anlage wird eine jährliche Kapazität von 1,4 Millionen metrischen Tonnen haben, wobei die Produktion voraussichtlich 2029 beginnen wird.
Die Eigentümerstruktur des Joint Ventures besteht aus CF Industries (40%), JERA (35%) und Mitsui (25%). Die geschätzten Kosten für die Ammoniakproduktionsanlage belaufen sich auf 4 Milliarden Dollar, die entsprechend den Eigentumsanteilen finanziert werden. CF Industries wird zusätzlich 550 Millionen Dollar in Infrastruktur investieren und die Betriebsführung sowie Wartung übernehmen.
Die Anlage wird über 95% der CO2-Emissionen erfassen, wobei jährlich etwa 2,3 Millionen metrische Tonnen CO2 von 1PointFive an ihrem Pelican Sequestration Hub in Louisiana transportiert und sequestriert werden. Es wird erwartet, dass das Projekt für Steuervergünstigungen gemäß Abschnitt 45Q für die Kohlenstoffsequestrierung in Frage kommt.
- World's largest low-carbon ammonia facility with 1.4M metric tons annual capacity
- Strategic partnership with major Japanese energy companies enhances market access
- Qualifies for 45Q tax credits on 2.3M metric tons of CO2 sequestration annually
- Additional revenue stream from ongoing services to joint venture
- 95% carbon capture rate demonstrates environmental leadership
- High capital investment requirement of $4.55B total
- Long timeline to production start (2029)
- Significant execution and construction risks for large-scale project
- Dependent on successful carbon sequestration infrastructure development
Insights
CF Industries' joint venture with JERA and Mitsui represents a strategic positioning in the evolving low-carbon ammonia market with substantial financial commitments. The
This investment offers multiple value streams for CF Industries: partial ownership of production assets, ongoing service revenue from operations and maintenance contracts, and expected 45Q tax credits on the sequestration of 2.3 million metric tons of CO2 annually. The structure wisely distributes capital requirements while leveraging CF's core operational expertise.
The arrangement with 1PointFive for carbon sequestration is particularly noteworthy, as it ensures qualification for valuable tax incentives while addressing emissions. The partnership structure with established energy companies JERA and Mitsui also secures significant offtake capacity, reducing market risk for the massive production volume.
While the 2029 production timeline represents a long horizon for capital recovery, this positions CF Industries at the forefront of what management clearly views as a growing market for low-carbon ammonia in both traditional applications and emerging clean energy uses. The project's scale and integrated approach with sequestration capabilities demonstrates a comprehensive strategy to maintain leadership in the ammonia market through the energy transition.
Companies to construct world’s largest low-carbon ammonia plant in
Start-up of low-carbon ammonia production expected to begin in 2029
Expect to qualify for 45Q tax credit on sequestration of approximately 2.3 million metric tons of CO2 per year
Highlights
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Joint Venture Structure: Upon formation, CF Industries will hold
40% ownership, JERA35% ownership, and Mitsui25% 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 - 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.
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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 - 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.
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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 .
“CF Industries is proud to partner with global leaders JERA and Mitsui to build the leading low-carbon ammonia production facility in the world,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Our joint venture represents tangible progress towards building a reliable and affordable low-carbon ammonia value chain to meet what we expect to be robust global demand for low-carbon ammonia for both traditional and new applications.”
Yukio Kani, JERA Global CEO and Chair said, “Collaboration and partnership are at the heart of JERA’s strategy to achieve our decarbonization goals. This Blue Point project is a testament to the strong alliances we are building to advance low-carbon solutions. The
Mr. Kenichi Hori, President and Chief Executive Officer of Mitsui & Co., Ltd, said, “We are excited to announce the achievement of this significant milestone together with CF Industries and JERA to invest in this large-scale low-carbon ammonia project in
Greenfield Low-Carbon Ammonia Capacity Construction Overview
The companies estimate that the cost of the low-carbon ATR ammonia production facility with CCS technologies will be approximately
Pre-construction activities and engineering evaluations will begin in 2025 at CF Industries’ Blue Point Complex in
The ammonia production facility is designed with an annual nameplate capacity of approximately 1.4 million metric tons and is expected to capture greater than
Additionally, 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
Carbon Capture and Sequestration Overview
1PointFive will provide transportation and sequestration of CO2 for the joint venture. The ammonia production facility is expected to capture, compress and dehydrate approximately 2.3 million metric tons of CO2 annually. 1PointFive will then transport the CO2 and permanently sequester it in a Class VI well at its Pelican Sequestration Hub in
“CF Industries and its partners’ confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner,” said Jeff Alvarez, President of 1PointFive Sequestration. “By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth.”
The joint venture expects to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a tax credit per metric ton of carbon dioxide permanently sequestered.
EPC Partners
The joint venture has awarded the engineering, procurement, and module fabrication contract to Technip Energies, which will perform engineering and fabrication of the equipment and modules required for the low-carbon ammonia production facility. Technip Energies will work with Topsoe, to which the joint venture awarded the process license for their low carbon (blue) SynCOR ATR ammonia plant technology.
(1) JERA has a conditional option to reduce its ownership percentage that expires on December 31, 2025. If the specified condition is met, JERA can reduce its ownership below
About CF Industries
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our manufacturing complexes in
About JERA Co., Inc.
Established in 2015, JERA is an equal joint venture of two major Japanese electric power companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company and produces about
For more details: https://www.jera.co.jp/en/
About Mitsui & Co.
Mitsui & Co. is a global investment and trading company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries. The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders. Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition. Visit https://www.mitsui.com/jp/en/ for more information.
About 1PointFive
1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) company that is working to help curb global temperature rise to 1.5°C through the deployment of decarbonization solutions, including Carbon Engineering's Direct Air Capture and AIR TO FUELS™ solutions alongside geologic sequestration hubs. Visit 1PointFive.com for more information.
AIR TO FUELS™ is a registered trademark of Carbon Engineering ULC.
About Technip Energies
Technip Energies is a global technology and engineering powerhouse. With leadership positions in LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management, we are contributing to the development of critical markets such as energy, energy derivatives, decarbonization, and circularity. Our complementary business segments, Technology, Products and Services (TPS) and Project Delivery, turn innovation into scalable and industrial reality.
Through collaboration and excellence in execution, our 17,000+ employees across 34 countries are fully committed to bridging prosperity with sustainability for a world designed to last.
Technip Energies generated revenues of
For further information: www.ten.com
About Topsoe
Topsoe is a leading global provider of technology and solutions for the energy transition. We combat climate change by helping our customers and partners achieve their decarbonization and emission reduction goals. Based on decades of scientific research and innovation, we offer world-leading solutions for transforming renewable resources into fuels and chemicals for a sustainable world, and for efficient and low-carbon fuel production and clean air. We were founded in 1940 and are headquartered in
Safe Harbor Statement
All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements, including, but not limited to, statements as to management’s expectations with respect to the costs and time schedules for the Blue Point Complex projects. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. Actual future results, including Blue Point Complex project plans, partner participation, timing, costs, and capacities could vary depending on: the ability to execute operational objectives on a timely and successful basis; timely completion of construction projects; implementation of government frameworks and permitting for carbon capture and storage and other lower-emission technologies; commercial and consumer interest in lower-emissions opportunities; changes in plans or objectives prior to final funding decisions or project startups; cooperation of joint venture members; changes in the Company’s ownership percentage in the joint venture; unforeseen technical or operational difficulties; and other market factors including changes in supply and demand and other market factors affecting future prices of ammonia and hydrogen products; and other factors discussed in this release and in the Company’s most recent annual and quarterly reports on Form 10-K and Form 10-Q. Important factors that could affect the Company’s ability to complete the Blue Point Complex projects on schedule as planned and on budget include, among others, cost overruns, effects of tariffs and changes in international trade on the cost and availability of project materials, performance of third parties, permitting matters, adverse weather, defects in materials and workmanship, labor and material shortages, transportation constraints, engineering and construction change orders, and other unforeseen difficulties.
More detailed information about factors that may affect the Company’s performance and could cause actual results to differ materially from those in any forward-looking statements may be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company’s web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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For additional information:
Media
Chris Close
Senior Director, Corporate Communications
847-405-2542 – cclose@cfindustries.com
Investors
Darla Rivera
Director, Investor Relations
847-405-2045 – darla.rivera@cfindustries.com
Source: CF Industries Holdings, Inc
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