CF Industries studies clean ammonia supply to JERA
CF Industries, the world’s largest producer of ammonia, said January 16 it had entered into a memorandum of understanding (MoU) with Japan’s JERA to explore an opportunity to supply clean ammonia for an ammonia co-firing project in Japan.
The MoU contemplates the supply by CF Industries of up to 500,000 metric tons/year of clean ammonia to JERA, Japan’s largest energy generator, starting in 2027. JERA began its search for clean ammonia for the project early last year.
The ammonia, which will be required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia, will be co-fired with coal at JERA’s Hekinan thermal power station in order to reduce CO2 emissions from the facility. JERA has concluded an ammonia co-firing pilot test and will begin a demonstration project at Hekinan during its 2023 fiscal year.
The two companies will assess how CF Industries could best supply JERA with the required ammonia under a long-term offtake agreement. A range of potential supply options will be considered, including JERA’s investment alongside CF Industries in a greenfield clean ammonia facility in Louisiana and a supplementary off-take agreement from CF’s Donaldsonville Complex in Louisiana, which will produce blue ammonia once a $200mn CO2 dehydration and compression facility there is completed in 2025.