CF Industries and a JV form a $4 billion low-carbon Ammonia facility
CF Industries announced on Tuesday that it has formed a joint-venture with Japan's biggest energy company, JERA, as well as investment firm Mitsui, to build a low-carbon ammonia plant for around $4 billion.
Why is it important?
The largest climate change legislation passed in the U.S. in 2022 was aimed at launching a boom of clean energy products in America, including those with low carbon emissions.
Ammonia manufacturer CF Industries has said that it expects to qualify for a 45Q tax credit based on the sequestration and storage of approximately 2.3 million metric tonnes of carbon dioxide per year.
CONTEXT
The joint venture is building an ammonia autothermal reforming facility (ATR), with a CO2 compression and dehydration unit, at CF Industries Blue Point Complex located in Louisiana. This will prepare the captured CO2 to be transported and buried.
1PointFive will transport and sequester CO2 on behalf of the joint venture.
The production of ammonia low in carbon is expected to start by 2029.
By the Numbers
CF Industries will own 40% of the joint venture after its formation. JERA will hold a 35% stake, and Mitsui will hold the remainder.
CF Industries announced that the facility would have a nameplate production capacity of 1.4 million metric tonnes, making it the largest ammonia plant in the world.
Each partner will fund the cost of the facility according to their ownership percentage. (Reporting and editing by Maju Samuel in Bengaluru, Tanay Dhumal)
(source: Reuters)
