Louisiana Company Announces Planned $2 Billion Carbon-Capture Ammonia Complex

Louisiana – On August 17, 2022, CF Industries Holdings, Inc. announced that they are evaluating a site in Ascension Parish for the construction of a proposed $2 billion blue ammonia production facility, which would create 103 direct new jobs in the Capital Region with an estimated average annual salary of $110,582 plus benefits. According to LED, the project would create 311 indirect jobs, for a total of 414 new jobs in the Capital Region.

CF Industries and Mitsui & Co., Ltd. would collaborate to develop the proposed export-oriented factory. The ammonia production method would result in much lower carbon emissions than current ammonia operations if carbon capture and sequestration were used, making it a “blue” process. Blue ammonia is regarded as a critical clean energy source since its constituents, nitrogen and hydrogen, do not produce carbon when combusted.

“This massive proposed investment from CF Industries would create good-paying jobs and strengthen Louisiana’s position as a leader in the clean energy transition,” Louisiana Governor John Bel Edwards said. “This would be another big step toward our goal of making Louisiana carbon-neutral by 2050. We thank CF Industries for its continued commitment to Louisiana, and look forward to working with company, parish and regional economic development leaders to move the project forward.”

Once the site and technology provider for the new plant are determined, CF Industries and Mitsui aim to commence a front-end engineering design (FEED) study. A FEED study normally takes 9-12 months from start to finish. The firms are scheduled to make a final investment decision in 2023. From that point, the construction and commissioning of a new world-scale capacity ammonia plant normally takes four years.

“CF Industries and Mitsui believe that blue ammonia will play a pivotal role in accelerating the world’s transition to clean energy and that our proposed blue ammonia production facility is an important step towards this future,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “CF Industries has long appreciated the partnership we have had with the State of Louisiana and Ascension Parish, both as we have expanded our operations over the years and now as we decarbonize our production processes and consider new capacity growth. We look forward to working with them further as we continue to evaluate our proposed blue ammonia production facility.”

With a global manufacturing and distribution network, CF Industries is the world’s largest ammonia producer. The proposed Ascension Parish project is part of the company’s aim to manufacture ammonia for sustainable energy applications while decarbonizing its ammonia manufacturing process. It unveiled a $198.5 million proposal earlier this month to add carbon capture and sequestration technology to its existing ammonia production facility in Donaldsonville.

“CF Industries has been a tremendous community partner for over 50 years and we look forward to working with them on this project,” said Clint Cointment, Ascension Parish President. “This facility will help meet the world’s needs for sustainable solutions on climate change while creating 103 new local jobs with over $10 million in permanent payroll and significant local economic activity during construction.”

To secure the project, the state of Louisiana is giving CF Industries a competitive incentive package that includes the services of LED FastStart, which was recently named the nation’s No. 1 statewide workforce development program for the 13th year in a row. Furthermore, the organization would be eligible for a performance-based reward of up to $6 million over four years to cover verifiable project development and infrastructure expenses. In addition, the company is expected to take advantage of the state’s Quality Jobs and Industrial Tax Exemption programs.

“Together with our partners, Ascension Economic Development Corporation is ready to assist CF Industries and Mitsui & Co. with this world-class energy transition project,” Kate MacArthur, AEDC president and CEO said. “Our area continues to grow in the clean hydrogen/ammonia and carbon sequestration field and this project would be a remarkable addition.”
“With CF Industries’ incredible proposed project, Louisiana’s Capital Region shows it is ready to be a global leader in transitional energy,” said Adam Knapp, president and CEO of the Baton Rouge Area Chamber. “We have seen over $16 billion in clean energy investments announced since 2020 in our region. We extend our appreciation to CF Industries’ leadership team for their continued commitment to Donaldsonville and Ascension Parish, and to parish officials and partners for their work to make this happen for Louisiana.”

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