CF Industries announces joint venture with JERA and Mitsui

CF Industries (CF) announced that it has formed a joint venture with JERA Co., which it identifies as “Japan’s largest energy company,” and Mitsui & Co. for the construction, production and offtake of low-carbon ammonia. Upon formation, CF Industries will hold 40% ownership, JERA 35% ownership, and Mitsui 25% ownership in the joint venture. The joint venture will construct at CF Industries’ Blue Point Complex in Louisiana an autothermal reforming ammonia production facility with a carbon dioxide 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 $4B, which will be funded by each partner according to their ownership percentage. 1PointFive, a carbon capture, utilization, and sequestration company and subsidiary of Occidental (OXY), will transport and sequester approximately 2.3 million metric tons of CO2 annually at 1PointFive’s Pelican Sequestration Hub in Louisiana, the company noted. “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.”