CF, JERA to develop mega-project in Louisiana
By on April 18, 2024
1.4 million tons per year greenfield plant
Click to learn more about the new development partnership between CF Industries and JERA.
Together, the pair will work towards development of an ammonia production mega-project at CF’s planned complex in Ascension Parish, Louisiana (the Blue Point Complex). JERA has been considering an equity stake in the project since January 2023, when it was announced that CF had won a supply contract for fuel ammonia linked to co-firing at the Hekinan power plant in Japan. Under the new joint development agreement, JERA will consider a 48% ownership stake in the new project. CF Industries aims to reach FID on the new project within a year, with production to commence in 2028.
We are pleased to expand our relationship with JERA…We believe that JERA’s projects, which represent the first meaningful volume of what we believe will be substantial global demand for low-carbon ammonia as an energy source, will demonstrate the significant contribution ammonia can make to meet the decarbonization goals of hard-to-abate industries. We look forward to continuing to work closely with JERA and other stakeholders in Japan as regulatory requirements and government incentives regarding low-carbon ammonia are finalized.
Tony Will, President and CEO, CF Industries in his organisation’s official press release, 18 Apr 2024
With JERA’s dedication to low carbon fuel development and CF Industries’ expertise as one of the leading ammonia producers, we are confident in making tangible progress towards realizing a low-carbon ammonia value chain, and ultimately ensuring a decarbonized energy supply that is sustainable, affordable, and stable.
Yukio Kani, Global CEO & Chair, JERA in CF Industries’ official press release, 18 Apr 2024
Prior to this announcement, CF has been exploring similar projects with Mitsui & Co. and POSCO, also on the Blue Point site. The Mitsui partnership explored ammonia production with a 60% emissions reduction compared to gas-based SMR production, meeting the threshold for low-carbon ammonia in Japan’s under-development certification system (a similar threshold is anticipated in South Korea).
JERA, ReNew to develop production project in India
Also in the news this week, JERA and ReNew announced that they would explore development of a renewable ammonia project in Odisha. 500 MW of “high capacity utilization factor” renewable energy will feed an electrolysis plant, producing 100,000 tons of ammonia per year on India’s east coast, with JERA to offtake the full volume. As part of the agreement, JERA’s new renewables-dedicated business unit JERA Nex will support the roll-out of new renewable energy generation in India.