CF Industries and JERA Announce Joint Development Agreement to Develop Greenfield Low-Carbon Ammonia Production Capacity in the United States
April 17 2024 - 9:00PM
Business Wire
CF Industries Holdings, Inc. (NYSE: CF), the world’s largest
producer of ammonia, and JERA Co., Inc. (JERA), Japan’s largest
energy company, today 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.
The JDA will guide JERA and CF Industries’ evaluation of a joint
venture agreement to build an approximately 1.4 million metric ton
capacity low-carbon ammonia plant. JERA is contemplating a 48%
ownership stake in the project as well as an agreement to procure
more than 500,000 metric tons of low-carbon ammonia annually to
meet demand for low-carbon fuels in Japan. JERA and CF Industries
previously had signed a memorandum of understanding to explore a
potential joint project development and sales and purchase of
low-carbon ammonia. JERA and CF Industries aim to reach a final
investment decision on the proposed project within a year for
commencing production in 2028.
“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 chief executive officer, CF Industries
Holdings, Inc. “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.”
“We are pleased to further advance our partnership with CF
Industries,” said Yukio Kani, Global CEO & Chair, JERA.
“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 towards realizing a low-carbon ammonia value chain, and
ultimately ensuring a decarbonized energy supply that is
sustainable, affordable, and stable."
JERA intends to replace coal with low-carbon clean ammonia in
its existing thermal coal power plants to reduce CO2 emissions.
JERA is currently conducting the world’s first commercial-scale
demonstration test of fuel ammonia substitution (20% of heating
value) at its Hekinan Thermal Power Station.
About CF Industries Holdings,
Inc.
At CF Industries, our mission is to provide clean energy to feed
and fuel the world sustainably. With our employees focused on safe
and reliable operations, environmental stewardship, and disciplined
capital and corporate management, we are on a path to decarbonize
our ammonia production network – the world’s largest – to enable
green and low-carbon hydrogen and nitrogen products for energy,
fertilizer, emissions abatement and other industrial activities.
Our manufacturing complexes in the United States, Canada, and the
United Kingdom, an unparalleled storage, transportation and
distribution network in North America, and logistics capabilities
enabling a global reach underpin our strategy to leverage our
unique capabilities to accelerate the world’s transition to clean
energy. CF Industries routinely posts investor announcements and
additional information on the Company’s website at
www.cfindustries.com and encourages those interested in the Company
to check there frequently.
About JERA
Established in 2015, JERA is an equal joint venture of two major
Japanese electric power companies, TEPCO Fuel & Power
Incorporated and Chubu Electric Power Company and produces about
30% of all electricity in Japan. JERA is an energy company with
global reach that has strength in the entire energy supply chain,
from participation in LNG upstream projects and fuel procurement,
through fuel transportation to power generation. JERA, which stands
for Japan’s Energy for a New Era, is taking on the challenge of
achieving net zero CO2 emissions from its domestic and overseas
businesses by 2050 and is supporting an energy transition in an
environmentally and socially responsible manner. For more details:
https://www.jera.co.jp/en/.
Cautionary Statement
All statements in this communication by CF Industries Holdings,
Inc. (together with its subsidiaries, the “Company”), other than
those relating to historical facts, are forward-looking statements.
Forward-looking statements can generally be identified by their use
of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or
“would” and similar terms and phrases, including references to
assumptions. Forward-looking statements are not guarantees of
future performance and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from
such statements. These statements may include, but are not limited
to, statements about strategic plans and management’s expectations
with respect to the production of green and low-carbon hydrogen and
ammonia, the development and implementation of the low-carbon
ammonia project with JERA in a timely or economic manner, the
development of carbon capture and sequestration projects, the
transition to and growth of a hydrogen economy, greenhouse gas
reduction targets, projected capital expenditures, statements about
future financial and operating results, and other items described
in this communication.
More detailed information about factors that may affect the
Company’s performance and could cause actual results to differ
materially from those in any forward-looking statements may be
found in CF Industries Holdings, Inc.’s filings with the Securities
and Exchange Commission, including CF Industries Holdings, Inc.’s
most recent annual and quarterly reports on Form 10-K and Form
10-Q, which are available in the Investor Relations section of the
Company’s web site. It is not possible to predict or identify all
risks and uncertainties that might affect the accuracy of our
forward-looking statements and, consequently, our descriptions of
such risks and uncertainties should not be considered exhaustive.
There is no guarantee that any of the events, plans or goals
anticipated by these forward-looking statements will occur, and if
any of the events do occur, there is no guarantee what effect they
will have on our business, results of operations, cash flows,
financial condition and future prospects. Forward-looking
statements are given only as of the date of this communication and
the Company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240417260747/en/
Media Chris Close Senior Director, Corporate
Communications 847-405-2542 – cclose@cfindustries.com
Investors Darla Rivera Director, Investor Relations
847-405-2045 – darla.rivera@cfindustries.com
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