CF Industries Holdings, of Deerfield, Illinois, has signed a memorandum of understanding with Japan’s JERA to supply up to 500,000 mtpy of ammonia beginning in 2027, according to a press release.
JERA is executing on a supplier comparison and evaluation process for the procurement of clean ammonia for its ammonia co-firing operations. The company put out an RFP in February of last year.
The ammonia, required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia, will be co-fired with coal at JERA’s Hekinan Thermal Power Station in Hekinan, Japan. JERA successfully concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at the plant.
“The MOU establishes a framework for the companies to assess how CF Industries would best supply JERA with clean ammonia under a long-term offtake agreement,” the release states. “The companies expect to evaluate a range of potential supply options, including an equity investment alongside CF Industries to develop a greenfield clean ammonia facility in Louisiana and a supplementary long-term offtake agreement from CF Industries’ Donaldsonville Complex in Louisiana.”
“Our leading ammonia production network and disciplined investments in clean energy initiatives have positioned CF Industries at the forefront of clean ammonia supply,” Tony Will, president and CEO of CF Industries, said in the release. “We look forward to helping JERA and Japan meet its clean ammonia requirements, which represent the first significant volume of what we believe will be substantial global demand for clean ammonia as a clean energy source.”
Since 2020 CF Industries has advanced projects to decarbonize its ammonia production network and position itself to supply a substantial volume within the next few years. This includes leveraging carbon capture and sequestration (CCS) technologies at its Donaldsonville Complex where CF Industries is constructing a CO2 dehydration and compression facility, which is expected to begin in 2025.
The company has also commenced a front end engineering and design study to construct a greenfield clean ammonia facility utilizing CCS in Ascension Parish, Louisiana.
CF Industries is also constructing a commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 tons of green ammonia production beginning in 2024.
