CF Industries, JERA and Mitsui have initiated a joint venture to build one of the world’s largest low carbon ammonia production plants in Louisiana for $4B. The partnership is in line with the global energy transition objectives, especially Japan’s efforts towards cleaner energy sources and the U.S. policy incentives under the 45Q tax credit program.
The plant will have autothermal reforming (ATR) technology and carbon capture facilities to sequester around 2.3 million metric tons of carbon dioxide per year. The plant will be constructed at CF Industries Blue Point Complex with production commencing in 2029. CF Industries will operate the plant and infrastructure.
Services relating to carbon sequestration will be provided by 1PointFive which is Occidental’s subsidiary company, through its Pelican Sequestration Hub. This evidence increased industrial momentum supporting the application of carbon capture and storage (CCS) technologies towards decarbonizing operations.
The project is supported by encouraging policy environments in both the U.S. and Japan. Japan will subsidize the cost difference between ammonia and coal for a maximum of 15 years, promoting domestic uptake in energy production. JERA plans to use its share at its Hekinan power plant, pointing to growing demand across power, industrial and shipping markets in both Europe and Asia.
Module construction and engineering will be directed by Technip Energies with Topsoe providing the licensed SynCOR ATR process which is central to guaranteeing efficient, scalable low carbon ammonia production.
This project not only enhances U.S. and Japan clean energy cooperation but also sets the stage for a global low carbon ammonia value chain. With production synchronized for industrial scale decarbonization, the plant is poised to become a pillar in the nascent hydrogen ammonia economy.
