BUSINESS

CF Industries signs agreement with JERA for supply of clean ammonia

Staff Report

CF Industries, the world’s largest producer of ammonia, announced in a news release that it has signed a memorandum of understanding with JERA Co. Inc., Japan’s largest energy generator, regarding the supply of up to 500,000 metric tons per year of clean ammonia beginning in 2027.

According to the release, the execution of the agreement is the result of a supplier comparison and evaluation process for the procurement of clean ammonia that JERA initiated in February 2022 for the world’s first commercial scale ammonia co-firing operations.

The CF Industries Donaldsonville Nitrogen Complex is the world’s largest nitrogen facility, according to the company. It is located on 1,400 acres along the west bank of the Mississippi River in Ascension Parish, near the Donaldsonville city limits.

The clean ammonia, which will be required to be produced with at least 60 percent lower carbon emissions than conventionally produced ammonia, will be co-fired with coal at JERA’s Hekinan Thermal Power Station in order to reduce carbon dioxide emissions from the facility. Ammonia does not emit CO2 when combusted. JERA has successfully concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at its Hekinan power plant.

The agreement establishes a framework for the companies to assess how CF Industries would best supply JERA with clean ammonia under a long-term offtake agreement. The companies expect to evaluate a range of potential supply options, including an equity investment alongside CF Industries to develop a greenfield clean ammonia facility in Louisiana and a supplementary long-term offtake agreement from CF Industries’ Donaldsonville complex located on the west side of Ascension Parish.