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CF Industries,JERA JDA to develop low-carbon ammonia production capacity in the US

CF Industries,JERA JDA to develop low-carbon ammonia production capacity in the US
With five units totaling 4.1 GW of power capacity, JERA Co., Inc (JERA) Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture is Japan’s largest coal-fired power plant. Together with IHI Corporation (IHI) JERA is already conducting 20 percent ammonia co-firing tests at the 1 GW Unit 4 at the plant. A new NEDO project aims to demonstrate ammonia co-firing rates of 50 percent (photo courtesy JERA).

US-headed CF Industries Holdings, Inc. (CF Industries), the world’s largest producer of ammonia, and JERA Co., Inc. (JERA), Japan’s largest energy company, have recently announced that they have executed a joint development agreement (JDA) to explore the development of greenfield low-carbon ammonia production capacity at CF Industries’ Blue Point Complex in Louisiana (LA).

The JDA will guide JERA and CF Industries’ evaluation of a joint venture agreement to build an approximately 1.4 million tonne capacity low-carbon ammonia plant.

JERA is contemplating a 48 percent ownership stake in the project as well as an agreement to procure more than 500,000 tonnes of low-carbon ammonia annually to meet the demand for low-carbon fuels in Japan.

JERA and CF Industries previously had signed a Memorandum of Understanding (MoU) to explore a potential joint project development and sales and purchase of low-carbon ammonia.

We are pleased to expand our relationship with JERA as our companies advance leading-edge decarbonization initiatives that will help JERA and Japan achieve their decarbonization goals, said Tony Will, President and CEO of CF Industries.

JERA and CF Industries aim to reach a final investment decision (FID) on the proposed project within a year for commencing production in 2028.

Replace coal with ammonia

JERA intends to replace coal with low-carbon clean ammonia in its existing thermal coal power plants to reduce carbon dioxide (CO2) emissions.

We believe that JERA’s projects, which represent the first meaningful volume of what we believe will be substantial global demand for low-carbon ammonia as an energy source, will demonstrate the significant contribution ammonia can make to meet the decarbonization goals of hard-to-abate industries. We look forward to continuing to work closely with JERA and other stakeholders in Japan as regulatory requirements and government incentives regarding low-carbon ammonia are finalized, Tony Will said.

JERA is currently conducting the world’s first commercial-scale demonstration test of fuel ammonia substitution, 20 percent of heating value, at its Hekinan Thermal Power Station, the largest coal-fired thermal plant in Japan.

We are pleased to further advance our partnership with CF Industries. Finding cutting-edge solutions to the world’s energy issues requires commitment and partnership. With JERA’s dedication to low-carbon fuel development and CF Industries’ expertise as one of the leading ammonia producers, we are confident in making tangible progress toward realizing a low-carbon ammonia value chain, and ultimately ensuring a decarbonized energy supply that is sustainable, affordable, and stable, said Yukio Kani, Global CEO and Chair at JERA.

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