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CF Industries building new ammonia facility in Louisiana

Posted on 4/8/25 at 10:24 am
Posted by Nevada_Tiger
Las Veags
Member since Jan 2025
140 posts
Posted on 4/8/25 at 10:24 am
CF Industries

quote:

CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, announced today that it has formed a joint venture with JERA Co., Inc. (JERA), Japan’s largest energy company, and Mitsui & Co., Inc. (Mitsui), a leading global investment and trading company, for the construction, production and offtake of low-carbon ammonia.


quote:

The companies estimate that the cost of the low-carbon ATR ammonia production facility with CCS technologies will be approximately $4 billion. Approximately half of the estimated cost is related to materials that will be imported to the United States, with the majority of imported materials expected to arrive in Louisiana in three years. The companies will divide the cost of the ammonia production facility engineering, procurement and construction according to their ownership percentage.

Pre-construction activities and engineering evaluations will begin in 2025 at CF Industries’ Blue Point Complex in Ascension Parish, Louisiana. Construction of the ammonia production facility is expected to begin in 2026, with low-carbon ammonia production expected in 2029.

The ammonia production facility is designed with an annual nameplate capacity of approximately 1.4 million metric tons and is expected to capture greater than 95% of carbon dioxide generated from the production of ammonia. CF Industries will have operations and maintenance responsibility under a contract with the joint venture.

Additionally, CF Industries will build and operate scalable infrastructure at the Blue Point site to supply the ammonia production facility with services including product storage and loading. CF Industries will invest approximately $550 million for these facilities and receive ongoing services revenue from the joint venture ammonia production facility.
Posted by ragincajun03
Member since Nov 2007
24756 posts
Posted on 4/8/25 at 10:29 am to
I think this plant is one of the sources whose CO2 Exxon is planning on sequestering in their planned Pecan Island vicinity injection site.

ETA: .Nevermind, just read the bottom of the press release where Occidental Petroleum is taking the CO2.
This post was edited on 4/8/25 at 1:17 pm
Posted by chryso
Baton Rouge
Member since Jul 2008
13049 posts
Posted on 4/8/25 at 10:30 am to
Who is going to be protesting this one?
Posted by mike4lsu
Baton Rouge,LA
Member since Sep 2005
1719 posts
Posted on 4/8/25 at 10:31 am to
Tarrifs are working...looks like
Posted by upgrade
Member since Jul 2011
13929 posts
Posted on 4/8/25 at 10:40 am to
quote:

Tarrifs are working...looks like


This has been planned since trumps first term.
Maybe even obama’s second term
Posted by GumboPot
Member since Mar 2009
132542 posts
Posted on 4/8/25 at 10:42 am to
quote:

I think this plant is one of the sources whose CO2 Exxon is planning on sequestering in their planned Pecan Island vicinity injection site.


Correct me if I'm wrong, but once Exxon purchased the Denbury system they nixed those plans. New CO2 pipeline operators (funded by private equity) will be competing for CF's business. I'm sure the Denbury system will come into play in terms of jumping on and off their system. (As a side note, the main source of CO2 on the Denbury system is the Jackson Dome...injection and withdrawal. It was originally used for EOR in the Mississippi fields.)

With that said, the 50,000 foot view, what is making the business case for these ammonia plants is the cheap natural gas on the front end and the CCS credits on the back end.
Posted by Granola
Member since Jan 2024
1656 posts
Posted on 4/8/25 at 10:52 am to
More winning Awesome
Posted by KamaCausey_LSU
Member since Apr 2013
15966 posts
Posted on 4/8/25 at 10:54 am to
quote:


Who is going to be protesting this one?

People against this.
quote:

I think this plant is one of the sources whose CO2 Exxon is planning on sequestering in their planned Pecan Island vicinity injection site.
Posted by dewster
Chicago
Member since Aug 2006
25945 posts
Posted on 4/8/25 at 11:04 am to
Great news for Louisiana and for the Donaldsonville-Plaquemine area. This is right up against where the new Hyundai plant is going, and the CF facility will likely be able to integrate with a lot of the other local plants. It might even help open opportunities for new industrial expansions in the future.

Man it's long past time to build that new bridge and the westbank turnpike to efficiently move traffic between the Sunshine Bridge, this new proposed bridge, the I-10 bridge, the US190 bridge, and the Audubon bridge.
This post was edited on 4/8/25 at 11:10 am
Posted by ragincajun03
Member since Nov 2007
24756 posts
Posted on 4/8/25 at 11:06 am to
quote:

Correct me if I'm wrong, but once Exxon purchased the Denbury system they nixed those plans. New CO2 pipeline operators (funded by private equity) will be competing for CF's business.


In the 2024 recap on their Carbon Capture page, Exxon still cites CF Industries’ current plant in Donaldsonville as their first customer hookup.

LINK

Though it is possible this future plant may opt to send their CO2 to another company’s network.

The link doesn’t say if that CO2 will eventually go to the Pecan Island area site. Might not, though that site is still also shown on Exxon’s page.

ETA: Nevermind, just read the bottom of the press release where Occidental Petroleum is taking the CO2 from this new facility.
This post was edited on 4/8/25 at 1:17 pm
Posted by ragincajun03
Member since Nov 2007
24756 posts
Posted on 4/8/25 at 11:07 am to
quote:

Tarrifs are working...looks like


Yes. CF Industries last week panicked and threw this plan together in a matter of a week.
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
144328 posts
Posted on 4/8/25 at 11:09 am to
Posted by DrewTheEngineer
Baton Rouge (Oak Hills)
Member since Jun 2006
1138 posts
Posted on 4/8/25 at 11:27 am to
quote:

Blue Point site


I've never heard this term before regarding CF's location. What does that refer to?
Posted by s14suspense
Baton Rouge
Member since Mar 2007
15107 posts
Posted on 4/8/25 at 12:05 pm to
quote:

I've never heard this term before regarding CF's location. What does that refer to?


Must just be related to the fact that they’re going to be making “blue” ammonia.
They’ve been using the term since they purchased the property back in 2022.
This post was edited on 4/8/25 at 12:29 pm
Posted by Swagga
504
Member since Dec 2009
17352 posts
Posted on 4/8/25 at 12:10 pm to
If this was a business leaving LA it would be a 30 page thread.

Yet a 4 billion dollar investment this week and 5 billion a week or two ago by Hyundai and it’s crickets.

Love this board
Posted by mike4lsu
Baton Rouge,LA
Member since Sep 2005
1719 posts
Posted on 4/8/25 at 12:10 pm to
quote:

Yes. CF Industries last week panicked and threw this plan together in a matter of a week.


Oh! Lighten up! I love to out baw or baws!
Posted by ragincajun03
Member since Nov 2007
24756 posts
Posted on 4/8/25 at 12:16 pm to
quote:

Oh! Lighten up! I love to out baw or baws!


In all seriousness, I just hope it actually gets built. I remember all the announcements years ago of that big woodchip plant that was coming to Ascension Parish. The Governor and politicians patting themselves on the back.

Now in 2025…still not a bit of dirt moved, no concrete poured on that tract.
Posted by mike4lsu
Baton Rouge,LA
Member since Sep 2005
1719 posts
Posted on 4/8/25 at 12:22 pm to
I hope so too...anytime you have a new business or a factory opening it raises the profile of the community a little.
Posted by ragincajun03
Member since Nov 2007
24756 posts
Posted on 4/8/25 at 12:48 pm to
quote:

Man it's long past time to build that new bridge and the westbank turnpike to efficiently move traffic between the Sunshine Bridge, this new proposed bridge, the I-10 bridge, the US190 bridge, and the Audubon bridge.


While comprising this wishlist, should we add in turning Ashland Road into a 6 lane freeway?
Posted by Kingpenm3
Xanadu
Member since Aug 2011
9503 posts
Posted on 4/8/25 at 12:52 pm to
What else will this plant make besides fertilizer? Or what else can the ammonia be used for?
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