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A joint company of three industrial, energy and financial heavyweights plans to build a “blue” $ 4 billion ammonia plant in Donaldsonville, Louisiana.
CF Industries Holdings, the largest ammonia producer in the world, formed the JV with the largest energy company in Japan, JERA, as well as the Mitsui & Co. investment and development giant. to build the Blue Point complex. The trio will build facilities at Produce and overcome ammonia At the site, located in the parish ascending, according to a launch of April 8, Northbrook, Illinois, CF Industries.
CF Industries already operates the world Ammonia and larger nitrogen plant To Donaldsonville, according to the Louisiana illuminator.
The JV will build an autothermal reforming ammonia production facility expected to produce 1.4 million metric tons of blue ammonia each year for export. The team will also build a carbon dioxide dehydration and compression unit at the site to prepare the CO2 captured for transport and abduction, depending on the launch.
Blue ammonia usually occurs extracting methane gas hydrogen and, unlike “gray” or conventional ammonia, uses carbon capture and storage to reduce general carbon emissions.
The project is expected to do generate 1,500 construction jobsreported local news WBRz. It will be financed by each partner according to their percentage of property, according to the launch. CF industries will have 40%; JERA, 35%; and Mitsui, 25%.
The global The ammonia market is on the way of triple in size by 2050, according to the International Agency for Renewable Energy. The ammonia has been widely used in fertilizers during the last century and could become a significant clean source of fuel.
“Our joint company represents tangible progress towards creating a reliable and affordable low carbon value chain to meet what we hope will be a low -carbon ammonia robust demand for traditional and new applications,” said Tony Will, president and CEO of CF Industries, in the statement.
The Blue Point project is one of the at least 14 proposed in carbon Ammonia projects announced in recent yearsMainly along the Gulf Coast, partly promoted by federal tax credits for carbon capture and storage in the inflation reduction law, according to Baton Rouge’s public radio. However, another blue plant of ammonia planned for the parish of St. Charles, a price of $ 4.6 billion, faces the opposition of residents due to pollution problems.
The key difference in Blue and green ammonia fuel It is sustainability: the production of blue ammonia is based on methane gas or other fossil fuels, while green ammonia uses hydrogen obtained through a process fed by renewable energy sources, including solar and wind, so it can be almost free of carbon, according to tracker energy. Even with carbon capture technology, the creation of blue ammonia produces clean CO2 emissions.
The Blue Point project involves transporting and abducting approximately 2.3 million metric tonnes of CO2 annually to the carbon capture company of Houston 1pointfive Hub Pelican Sequestration Hub in Louisiana, according to the statement.
Pre-construction activities and engineering evaluations will begin this year and construction is expected to begin in 2026. Amoniac production is expected to begin in 2029.
