CF Industries And Japan's JERA Explore Low-Carbon Ammonia Production: Details

Zinger Key Points
  • JERA is planning a 48% ownership stake in the project.

CF Industries Holdings Inc CF has executed a joint development agreement (JDA) with Japan energy company JERA to develop greenfield low-carbon ammonia.

The exploration of ammonia production is expected to happen at CF Industries’ Blue Point Complex in Louisiana.

The JDA will assist JERA and CF Industries’ evaluation of a joint venture agreement to build an approximately 1.4 million metric ton capacity low-carbon ammonia plant. 

JERA is planning a 48% ownership stake in the project and an agreement to procure more than 500,000 metric tons of low-carbon ammonia annually.

The two parties had previously inked a memorandum of understanding for joint project development and sales and purchase of low-carbon ammonia.

JERA and CF Industries aim to reach a final investment decision on the proposed project within a year for commencing production in 2028.

“We are pleased to expand our relationship with JERA as our companies advance leading-edge decarbonization initiatives that will help JERA and Japan achieve their decarbonization goals,” said President and CEO Tony Will.

JERA intends to replace coal with low-carbon clean ammonia in its existing thermal coal power plants to reduce CO2 emissions. 

Price Action: CF shares closed higher by 0.06% at $77.80 on Wednesday.

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