CF INDUSTRIES ANNOUNCES $2 BILLION CARBON CAPTURED AMMONIA COMPLEX IN ASCENSION PARISH
Posted 3:27 p.m. on Wednesday, August 17, 2022
BATON ROUGE, La. – CF Industries Holdings, Inc., announced it was evaluating a site in Ascension Parish for construction of a proposed $2 billion blue ammonia production facility that would create 103 new direct jobs in the Capital Region with an estimated average annual salary of $110,582 plus benefits. LED estimates that the project would create 311 indirect jobs, for a total of 414 new jobs in the capital region.
The proposed export-oriented facility would be jointly developed by CF Industries and Mitsui & Co., Ltd. process. Blue ammonia is considered a key clean energy source since its components – nitrogen and hydrogen – do not emit carbon when burned.
“This massive investment proposed by CF Industries would create well-paying jobs and strengthen Louisiana’s position as a leader in the clean energy transition,” Governor John Bel Edwards said. “This would be another big step toward our goal of making Louisiana carbon neutral by 2050. We thank CF Industries for their continued commitment to Louisiana and look forward to working with the company’s economic development leaders, of the parish and the region to move the project forward. ”
CF Industries and Mitsui plan to begin an Initial Engineering Design Study (FEED) once the site and technology provider for the new plant is finalized. A FEED study typically takes 9-12 months from the start date to complete. A final investment decision by the companies is expected in 2023. Building and commissioning a new global capacity ammonia plant typically takes around four years from then.
“CF Industries and Mitsui believe that blue ammonia will play a pivotal role in accelerating the global transition to clean energy and that our planned blue ammonia production facility is an important step towards that future,” said said Tony Will, President and CEO of CF Industries Holdings, Inc. “CF Industries has long appreciated the partnership we’ve had with the State of Louisiana and Ascension Parish, both as we’ve expanded our operations over the years and now as we decarbonize our production processes and consider further capacity growth. We look forward to continuing to work with them as we continue to evaluate our proposed blue ammonia production facility. »
CF Industries is the world’s largest producer of ammonia, with a global manufacturing and distribution network. The Ascension Parish project under consideration is part of the company’s commitment to producing ammonia for clean energy applications while decarbonizing its ammonia production process. Earlier this month, it announced a $198.5 million plan to add carbon capture and sequestration capacity to its existing ammonia production facility in Donaldsonville.
“CF Industries has been a tremendous community partner for over 50 years and we look forward to working with them on this project,” said Clint Cointment, Parish President of Ascension. “This facility will help meet global needs for sustainable climate change solutions while creating 103 new local jobs with over $10 million in permanent payroll and significant local economic activity during construction.
To secure the project, the State of Louisiana is offering CF Industries a competitive incentive package that includes LED FastStart services, which was recently ranked as the first industry-wide workforce development program. status for the 13th consecutive year. Additionally, the company would be eligible for a performance-based award of up to $6 million to be paid over four years to reimburse verified project development and infrastructure expenses. The company should also utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“Together with our partners, Ascension Economic Development Corporation stands ready to assist CF Industries and Mitsui & Co. in this world-class energy transition project,” said AEDC President and CEO Kate MacArthur. “Our region continues to grow in the area of clean hydrogen/ammonia and carbon sequestration and this project would be a great addition.”
“With the incredible project proposed by CF Industries, the Louisiana Capital Region is showing that it is ready to be a world leader in transitional energy,” said Adam Knapp, President and CEO of the Baton Rouge area bedroom. “We have seen over $16 billion in clean energy investments announced since 2020 in our region. We express our gratitude to the CF Industries leadership team for their continued commitment to Donaldsonville and Ascension Parish, and to the parish leaders and their partners for their work to make this happen for Louisiana.
About CF Industries
CF Industries’ mission is to provide clean energy to sustainably feed and power the world. With its employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and business management, the company is on track to decarbonize its ammonia production network – the largest to the world – to enable green and blue hydrogen and nitrogen products for energy, fertilizers, emissions reduction and other industrial activities. CF Industries has nine manufacturing complexes in the United States, Canada and the United Kingdom. Read investor announcements and additional company information at www.cfindustries.com.
Louisiana’s economic development is responsible for strengthening the state’s business environment and creating a more vibrant Louisiana economy. It is the only state agency in the United States accredited by the International Council for Economic Development, offering a wide range of award-winning programs and projects that are consistently ranked among the best in the country. In 2021, LED attracted 64 new economic development projects representing over 18,100 new direct and indirect jobs, 9,700 jobs retained and over $20.5 billion in new capital investment. Learn how LED cultivates jobs and economic opportunity for Louisiana residents and promotes business opportunities for employers of all sizes at OpportunityLouisiana.com.