$198.5 Million Carbon Capture Project Announced by Chemical Company in Louisiana

Donaldsonville, Louisiana – The Louisiana Office of the Governor announced on August 5, 2022, that CF Industries plans to invest $198.5 million to build a CO2 compression and dehydration unit at its Ascension Parish plant in an effort to reduce carbon emissions at what it claims is the world’s largest ammonia production facility.

The initiative would generate 12 new direct employees with annual salaries of $100,000 plus perks. 521 existing jobs in the Capital Region would be retained by CF Industries.

“To achieve our goal of net zero emissions by 2050, Louisiana must simultaneously increase new clean energy investments and decrease current greenhouse gas emissions,” Louisiana Governor John Bel Edwards said. “CF Industries’ plan to add carbon capture capabilities to its Donaldsonville plant accomplishes that, while stimulating economic activity and creating high-paying jobs in Ascension Parish. We applaud the company’s commitment to sustainability and encourage other industry leaders to recognize that decarbonization is good for both our economy and our climate.”

According to CF Industries, this project will allow up to 6,000 tons of process CO2 per day – up to 2 million tons per year – to be absorbed, liquefied, and transferred via pipeline to a yet-to-be-determined sequestration site. This method would allow the company to create up to 1.7 million tons of blue ammonia each year. When CO2 emissions are caught before being released into the atmosphere, a chemical process is called “blue,” making it more carbon-neutral. Because its components, nitrogen and hydrogen, do not produce carbon when combusted, blue ammonia is seen as a critical clean energy source for the energy transition.

“We believe that ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia for this purpose will grow meaningfully in the coming years,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We are pleased to be able to leverage our previous investments in Louisiana to add CO2 processing technology to our Donaldsonville complex that will enable a significant volume of blue ammonia production by the middle of the decade. This will position CF Industries and Louisiana at the forefront of this emerging global market.”

Following Cleco’s April announcement of a $900 million investment to add carbon capture and sequestration to its Boyce, Louisiana, power plant, this is the second project this year by a Louisiana company geared at lowering existing greenhouse gas emissions.

“CF Industries is accelerating the transition to clean energy, serving as a leader in the production of green ammonia and now in the construction of infrastructure for the permanent sequestration of carbon dioxide,” said Clint Cointment, Ascension Parish President. “Ascension Parish is proud to be the location for this investment by CF Industries that creates a cleaner, sustainable future.”

CF Industries’ application for participation in the State of Louisiana’s Industrial Tax Exemption program has been approved by the Board of Commerce and Industry as well as the required local government entities. The corporation is also expected to participate in the state’s Quality Jobs program, which is based on performance.

“This investment by CF Industries further exemplifies why Ascension Parish is an ideal location for the production of sustainable, clean technologies for both energy and emissions reductions,” said Ascension Economic Development Corporation President & CEO Kate MacArthur.