CF Industries partners with Asian firm on low-carbon ammonia plan
By MEDICINE HAT NEWS on March 1, 2023.
https://www.medicinehatnews.com@MedicineHatNews CF Industries has signed another agreement with an Asian partner to develop low-carbon ammonia production at its new Louisiana plant site. The global producer that has a major plant in Medicine Hat announced Monday it had entered into an memorandum of upstanding with Lotte Chemical Corp., of South Korea. A joint development framework could centre on the “Blue Point” facility proposed as a blue ammonia centre on the U.S. Gulf Coast, coupled with a proposed carbon capture and sequestration facility. Jin-koo Hwang, head of Lotte’s hydrogen energy business, said his company will bolster domestic hydrogen use by securing a stable, global supply of clean hydrogen and ammonia “in overseas regions with abundant energy and low geopolitical risks.” “Through strategic collaboration with CF Industries, which has a long history and business experience, we will secure a production base in the U.S.A. and lead the global distribution channel.” The new agreement would see CF and Lotte jointly develop a production facility that would meet South Korea’s national standard for carbon dioxide emissions, and examine a long-term off take agreement between the partners. Lotte plans to invest US$4.3 billion in clean hydrogen production by 2030 with a target of obtaining 1.2 million U.S. tons annually for shipment to and use in South Korea. In January, CF announced a deal to supply Japanese utility giant JERA with 500,000 tonnes of ammonia annually by 2027. Three years ago, CF announced its strategy to become a major producer and shipper of lower carbon ammonia and its component hydrogen, which can be stripped out for use as a fuel for the utilities and transportation sector. 11-10
