CF Industries to purchase Louisiana ammonia facility for $1.68B

By MEDICINE HAT NEWS on March 21, 2023.

https://www.medicinehatnews.com@MedicineHatNews

CF Industries will purchase an ammonia production facility in Louisiana for US$1.68 billion, it announced on Monday, along with initial plans to add carbon capture potential at the site near its other facilities on the U.S. Gulf Coast.

The 880,000-ton per year “Waggaman” plant was built in 2016 by Incitec Pivot Ltd. and is located on the Mississippi River, about 100 kilometres southwest of CF’s Donaldsonville facility.

About one-quarter the purchase price will be covered though a supply and long-term off-take agreement with an IPL subsidiary, and the remaining US$1.25 will be cash that CF has on hand.

“We believe the Waggaman facility will fit seamlessly into our network, as well as our strategic focus on ammonia as a clean energy source, given its proximity and pipeline connection to our Donaldsonville, Louisiana, Complex, its distribution and logistics flexibility, and its favourable characteristics for the addition of carbon capture and sequestration (CCS) technologies to enable low-carbon ammonia production,” said CF president Tony Will.

The CF Industries nitrogen plant at Medicine Hat has a production capacity for 1.5 million tonnes of ammonia and granular urea.