CF Industries Holdings signed an agreement with Japan’s largest energy producer to supply 500,000 metric tons of per year of low-emissions ammonia beginning in 2027, according to a Jan. 17 news release.
As part of the agreement, the companies plan to evaluate various supply options, including the development of a greenfield clean ammonia facility in Louisiana and a supplementary long-term offtake agreement from CF Industries’ Donaldsonville Complex in Louisiana.
JERA will co-fire the clean ammonia with coal at its Hekinan Thermal Power Station.
Japanese utilities have been looking to co-fire ammonia and coal in an effort to reduce CO2 emissions, according to Bloomberg NEF.
JERA has successfully completed an ammonia co-firing pilot test and will begin a demonstration project this year at plant, according to the news release.
The memorandum of understanding establishes a framework to determine how CF Industries could best supply JERA with clean ammonia under a long-term offtake agreement.
Since 2020, CF Industries has embarked on projects to supply a substantial volume of clean ammonia within the next few years, the company said in the news release.
This includes leveraging carbon capture and sequestration technologies at its Donaldsonville Complex where CF Industries is constructing a CO2 dehydration and compression facility to enable the capture and permanent sequestration (CCS) of up to 2 million tons of CO2 per year, which is expected to begin in 2025.
The company also has begun a front-end engineering and design study to construct a greenfield clean ammonia facility utilizing CCS in Ascension Parish, Louisiana. Additionally, CF Industries is constructing a commercial-scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 tons of green ammonia production beginning in 2024.
