Jera/CF Industries in jv for low carbon ammonia project in US

Japanese energy firm Jera Co has executed a joint development agreement with CF Industries Holdings, the world’s largest producer of ammonia, to jointly explore the development of a low carbon ammonia production project in the US.

The project is planned for an annual capacity of approximately 1.4 million tonnes of low-carbon ammonia which to be located at CF Industries’ Blue Point Complex in Louisiana, US. Under the agreement, Jera is contemplating a 48% ownership stake in the project as well as an agreement to procure more than 500,000 tonnes/year of ammonia to meet demand for low carbon fuels in Japan. Jera and CF Industries aim to reach a final investment decision on the proposed project within a year for commencing production in 2028.

This agreement represents progress made following the January 2023 announcement that Jera and CF Industries had initiated an MOU to explore a potential joint project development and sales & purchase of clean ammonia. The MOU execution resulted from the tender process for the procurement of clean ammonia conducted by Jera in February 2022.

This agreement further underscores progress Jera has been making toward replacing coal with ammonia at its Hekinan Thermal Power Station in Japan.

“We are pleased to expand our relationship with Jera as our companies advance leading-edge decarbonisation initiatives that will help Jera and Japan achieve their decarbonisation goals,” said Tony Will, President/CEO, CF Industries Holdings, Inc. “We believe that Jera’s projects, which represent the first meaningful volume of what we believe will be substantial global demand for low-carbon clean ammonia as an energy source, will demonstrate the significant contribution ammonia can make to meet the decarbonisation goals of hard-to-abate industries.”