CF Industries Holdings, Inc., a producer of ammonia, announced today that it has formed a joint venture for the construction, production and offtake of low-carbon ammonia.

The joint venture was formed with JERA Co., Inc. , a Japanese  energy company, and Mitsui & Co., Inc., a global investment and trading company.

The joint venture will construct  an autothermal reforming (ATR) ammonia production facility with a carbon dioxide dehydration and compression unit at the site to prepare captured CO2 for transportation and sequestration at CF Industries’ Blue Point Complex in Louisiana. The estimated cost for the ammonia production facility is approximately $4 billion, which will be funded by each partner according to their ownership percentage.

The low-carbon ammonia production facility will have an annual nameplate capacity of approximately 1.4 million metric tons, which would be the largest ammonia production facility by nameplate capacity in the world. Production of low-carbon ammonia is expected to begin in 2029, and the facility is expected to capture greater than 95% of carbon dioxide generated from production. 

The product offtake will be handled independently by the three companies according to their ownership percentage.

1PointFive, a carbon capture, utilization, and sequestration (CCUS) company and subsidiary of Occidental, will transport and sequester approximately 2.3 million metric tons of CO2 annually at 1PointFive’s Pelican Sequestration Hub in Louisiana.

“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., in a statement. “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.”