CF Industries announces plan for ‘blue ammonia’ plant in the U.S.

By COLLIN GALLANT on May 4, 2022.

cgallant@medicinehatnews.com@CollinGallant

CF Industries will build a brand new “world class” blue ammonia production plant on the U.S. Gulf Coast, in a joint partnership to market the lower-carbon product in Asia, the company announced Tuesday.

It also stated one day ahead of reporting its quarterly financial reports Wednesday that upgrades at existing sites or projects could supply two million tonnes of low- or no-carbon ammonia by the end of 2024.

That would total one-fifth of gross ammonia production at nine global plants, including one in Medicine Hat, or more than half the ammonia production not upgraded into urea or other fertilizer.

The new facility, connected to a carbon sequestration system, will be 48 per cent owned by Japanese chemical company Mitsui, which will market the production, while CF operates the plant geared for export.

The firms have a site selected for the new build facility that will employ carbon capture, and estimate the facility could produce no sooner than 2027 at the earliest, according to a release.

“We believe the United States offers considerable advantages for blue ammonia production due to access to plentiful and low-cost natural gas, the regulatory and legal framework in place and the geology suitable for permanent carbon sequestration,” CF president and CEO Tony Will said in a statement.

Those same attributes are being touted as an advantage for hydrogen production and the use of hydrogen in petrochemical sector in Alberta. The province touted its strategy to bolster the growing sector – seen as key to carbon emission reduction – at a major conference last week in Edmonton.

CF is also a partner with the City of Medicine Hat in studying the potential for a carbon sequestration hub in southeast Alberta. Applications for the pore space rights to storage caverns were due with Alberta Energy this week.

In late 2020, CF announced it would seek to become a major player in delivering low-carbon ammonia, which could be converted back into clean-burning hydrogen after transport through the CF logistics network.

That included an initial investment to build a US$450-million production unit at its Donaldsonville, La. plant to produce hydrogen from electrolysis of water with renewable energy, known as green ammonia. It also said it was evaluating projects across its fleet, including carbon capture to lower emissions when methane is reformed. Nitrogen and hydrogen comprise ammonia.

CF is expected to release its first-quarter financial results after the stock markets close today, and will discuss results in a conference call Thursday.

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