Industrial, Sourcing Renewables - April 26, 2023
CF Industries Signs MOU for Green Hydrogen Project
CF Industries Holdings, a producer of ammonia, signed a memorandum of understanding (MOU) for a joint venture to develop a hydrogen project at CF Industries’ Verdigris Complex in Oklahoma.
The agreement was signed with NextEra Energy Resources. The proposed project was submitted in an application to the U.S. Department of Energy (DOE) by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program.
CF Industries and NextEra Energy Resources anticipate that the DOE’s support for the project would be a key aspect of their evaluation process.
The proposed project includes a jointly owned 100-megawatt (MW) electrolysis plant at the Verdigris Complex that would be powered by a 450-MW renewable energy facility developed by NextEra Energy Resources that is dedicated for the plant.
CF Industries would be the only offtaker of all of the zero-carbon green hydrogen output from the site’s electrolyzers. The green hydrogen would be used to produce up to 100,000 tons per year of zero-carbon green ammonia.
The production of green ammonia would support the switch to low- and zero-carbon fertilizers and could remove up to 130,000 metric tons of carbon dioxide emissions from the agriculture supply chain annually.
“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable and verifiable way to reduce the lifecycle carbon footprint of the food we eat,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc., in a statement. “We are pleased to work with NextEra Energy Resources to explore how best green hydrogen could help accelerate the adoption of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the United States and contribute to decarbonizing the agriculture supply chain.”