The CF Industries fertilizer facility is seen from Brier Park area of Medicine Hat in this September 2020 file photo.--NEWS FILE PHOTO COLLIN GALLANT
cgallant@medicinehatnews.com@CollinGallant
A plan to make CF Industries carbon neutral and a major supplier of hydrogen fuel could lead to new investment in the company’s Medicine Hat ammonia facility.
The global fertilizer manufacturer outlined a strategy Thursday to reduce carbon emissions across its facilities by one-quarter by 2030, as well as position itself as a major supplier of the clean-burning fuel.
The pivot could make the Medicine Hat ammonia complex a key point in accessing the pacific marketplace.
“Today’s commitment to decarbonize the world’s ammonia production network positions CF Industries at the forefront of clean hydrogen supply,” said CF president Tony Will in a statement.
The company will spend US$400 million immediately to build a green hydrogen facility at a U.S. plant site.
But long-term work plans would include all facilities, including the Medicine Hat plant which produces 1.6 million tonnes of carbon dioxide annually, according to figures filed with the federal government.
“Our existing scale and commitment to produce green and low-carbon ammonia,” said Will, makes the company a “clear leader” while “providing a growth platform to drive long-term shareholder value.”
Company stocks traded in New York rose 4 per cent on Thursday after losses alongside the general market earlier in the week.
The CF program targets 2050 as the date of “carbon neutral” production across the company’s fleet of production plants.
The hydrogen effort is based on outlook for growing demand as a replacement fuel. When burned, hydrogen produces oxygen and water, and demand could rise 600 per cent over the next 10 years according to some analysts.
This fall the provincial government announced it would develop and release an Alberta hydrogen industry development plan in the spring of 2021.
Ammonia is made up of three parts hydrogen and one part nitrogen, which the company says makes it a transport medium for the fuel that is highly combustible in pure form.
It states that beyond use as a fertilizer or industrial chemical, ammonia could be stripped down for its hydrogen content, and the existing production and distribution network could be employed.
Most of CF strategy will be formalized in 2021, according to a company spokesperson, but initially, US$400 million would be spent out of existing capital plans to build green ammonia production at its plant in Donaldsonville, La.
Carbon capture and sequestration projects could be built near all or some production facilities, partnerships would be sought for product development and end-use agreements.
A presentation to investors outlines that Medicine Hat is seen as a key facility for the Asian export market, compared to most of the company’s facilities in the U.S. midwest and another in England.
