CF Industries to Build Low-Carbon Ammonia Plant in Louisiana

April 9, 2025

CF Industries secures funding for a $4 billion low-carbon ammonia production facility in a joint venture with JERA and Mitsui. The plant will have carbon-capture technology and an annual capacity of 1.4 million metric tons.

Amanda Joshi

Blue Ammonia and Its Role in Decarbonization

Blue ammonia, refers to ammonia produced via conventional hydrogen generation methods — typically steam methane reforming or autothermal reforming (ATR) — paired with carbon capture and storage (CCS) to mitigate CO₂ emissions.

Production Process

Ammonia is synthesized using the Haber-Bosch process, where hydrogen reacts with nitrogen under high pressure and temperature in the presence of a catalyst. For blue ammonia, the hydrogen feedstock is derived from natural gas. The key differentiator is the integration of CCS to capture CO₂ generated during hydrogen production.

Technologies such as Topsoe’s SynCOR ATR system, featured in CF Industries’ new plant, enable high CO₂ capture rates. Captured CO₂ is dehydrated, compressed and transported for permanent geological sequestration.

Industry Significance

Blue ammonia serves as a bridge solution in the transition to net-zero emissions, offering a lower-carbon alternative to traditional ammonia. It also provides a scalable pathway while green ammonia — produced via electrolysis using renewable energy — remains in early commercialization stages.

Ammonia producer CF Industries has secured funding to build a low-carbon ammonia production facility in Louisiana, the company said April 9. The plant is part of a new joint venture with Japanese energy company JERA global investment firm Mitsui & Co. Inc.

The estimated $4 billion facility will be built at CF Industries’ Blue Point Complex in Ascension Parish and will include carbon-capture technology to store greenhouse gas emissions.

The facility will have an annual capacity of approximately 1.4 million metric tons, making it the largest producer of low-carbon, or blue ammonia, by nameplate capacity in the world, according to the company.

Construction is expected to begin in 2026, with operations starting in 2029.

Per the joint agreement, CF Industries will be responsible for operating and maintaining the facility, including product storage and loading. Product offtake will be handled independently by the three companies according to their ownership percentage.

The facility will include a carbon dioxide dehydration and compression unit to prepare captured CO₂ for transportation and sequestration. CF Industries expects to capture more than 95% of CO₂ generated from the production of ammonia, the company said in its press statement.

1PointFive signed a 25-year offtake agreement with the joint venture to transport and sequester approximately 2.3 million metric tons of CO2 annually from CF Industries, the carbon capture, utilization and sequestration company said. 1PointFive will store the captured CO2 at its Pelican Sequestration Hub in Louisiana, which is still in development.

Engineering, procurement and construction firm Technip Energies will engineer and fabricate the site’s equipment and modules and will use Topsoe’s licensed SynCOR ATR ammonia technology.

The project is expected to create 103 permanent jobs with an average annual salary of $110,000 and an estimated 311 indirect new jobs in the region, according to the Louisiana Economic Development department.

What People are Saying

Yukio Kani, JERA CEO: “The U.S. remains a cornerstone market for JERA, and this initiative underscores our long-term commitment to expanding our presence with diversified and sustainable energy projects.”

Mr. Kenichi Hori, president and CEO of Mitsui & Co., Ltd: “Mitsui will establish a low-carbon ammonia value-chain worldwide by leveraging its presence in the U.S. gas value chain from natural gas to chemicals, including this project… We aim to lower carbon emissions across various industries through investment in projects of this kind.”

About the Author

Amanda Joshi | Managing Editor

Amanda Joshi has more than 18 years of experience in business-to-business publishing for both print and digital content. Before joining Chemical Processing, she worked with Manufacturing.net and Electrical Contracting Products. She’s a versatile, award-winning editor with experience in writing and editing technical content, executing marketing strategy, developing new products, attending industry events and developing customer relationships.

Amanda graduated from Northern Illinois University in 2001 with a B.A. in English and has been an English teacher. She lives in the Chicago suburbs with her husband and daughter, and their mini Aussiedoodle, Riley. In her rare spare time, she enjoys reading, tackling DIY projects, and horseback riding.