CF signs Japan energy deal

By MEDICINE HAT NEWS on January 18, 2023.

https://www.medicinehatnews.com@MedicineHatNews

CF Industries has an agreement to supply “clean ammonia” to one of Japan’s largest power companies, it announced Tuesday, to be used in one of the first-ever hydrogen-coal dual fuel power plants.

That would require 500,000 tonnes per year of ammonia beginning in 2027, as Japanese utility giant JERA plans to open the world’s first commercial scale “ammonia-coal” power plant to provide lower-emission base-load thermal power.

That volume could likely come from the CF’s plan to expand its Donaldsonville, La. facility, and the new agreement gives JERA the option to become a joint partner in the new facility or sign an off-take agreement.

“Our leading ammonia production network and disciplined investments in clean energy initiatives have positioned CF Industries at the forefront of clean ammonia supply.”

“Clean ammonia” is ammonia produced from water using large amounts of renewable energy (green ammonia) or from natural gas with emissions process and stored with carbon capture and sequestration (blue ammonia).

Approved expansion at the Louisiana complex could supply 20,000 tonnes per year of green ammonia in 2024.

Since 2020, CF has promoted its global production and logistics network as able to supply ammonia, which consists of nitrogen and hydrogen, as a transport medium for hydrogen that could be stripped out upon delivery and burned like natural gas without CO2 emissions.

JERA officials stated the company will continue to “realize and accelerate not only the decarbonization of the Japanese energy industry but also to solve the energy-related issues that the world is facing.”

The release states that JERA, which supplies 30 per cent of Japan’s power demand, has completed a pilot study of the dual-fuel process and will build a larger demonstration plant this year.

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