CF Industries Holdings Inc., a leading ammonia manufacturer, and JERA Co., Inc., a prominent energy industry player in Japan, have announced a collaborative agreement to investigate the potential for establishing low-carbon ammonia production capability at the Blue Point Complex in Louisiana, owned by CF Industries.
This pact will direct both CF Industries and JERA in the consideration of a cooperative venture aimed at constructing a low-carbon ammonia plant with a capacity of around 1.4 million metric tons. JERA is considering taking up a 48% stake in the project and has also expressed interest in securing over 500,000 metric tons of low-carbon ammonia annually. This is to meet the rising demand for low-carbon fuels in Japan.
Both companies aim to finalize their investment decision on the proposal within a year, with a view to initiate production in 2028.
JERA aims to use low-carbon clean ammonia as a replacement for coal within their existing thermal coal power plants as a step towards reducing CO2 emissions. As part of their commitment, JERA is currently organizing the world's first demonstration test of commercial-scale fuel ammonia substitution (accounting for 20% of heating value) at its Hekinan Thermal Power Station.
