The Blue Point Low-Carbon Ammonia Facility project in Ascension Parish, Louisiana, continues to advance as one of the most significant clean energy and industrial decarbonization projects under development in the US. Backed by a joint venture between CF Industries, Japan’s JERA and Mitsui, the US$4 billion project is set to become the world’s largest low-carbon ammonia production facility, with a planned annual capacity of 1.4 million metric tons. The plant will use auto-thermal reforming (ATR) technology. It will also feature carbon capture and sequestration systems. This will capture more than 95% of carbon dioxide emissions generated during production. It will effectively position Louisiana as a major hub in the emerging low-carbon ammonia value chain. Its development is also mirrored by gas-fired projects dedicated to data centers in the U.S. including JERA’s latest $3 billion power plant.

CF Industries Plans $2B Blue Point Low-Carbon Ammonia Project in Ascension Parish, Louisiana

Reported September 15, 2023 – Louisiana Economic Development revealed on Thursday that CF Industries is actively considering building a cutting-edge blue ammonia production facility in Ascension Parish. This exciting project, estimated at $2 billion, could transform the industrial landscape in Ascension Parish.

Blue Point Ammonia Production Facility project in Louisiana is jointly developed by CF Industries and South Korea’s top steel manufacturer, POSCO Holdings. It aims to bring the latest advancements in ammonia production technology and environmental sustainability to the region.

This facility will be located at CF Industries’ proposed Blue Point Complex on the west bank of the Mississippi River in Ascension Parish. This site is also where another $2 billion “blue” ammonia plant is planned, in partnership with Japan’s Mitsui & Co., with support from LOTTE Chemical Corp.

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Importantly, the Blue Point Ammonia Production Facility project in Ascension Parish, Louisiana is a collaboration between CF Industries and Posco Holdings, South Korea’s largest steel manufacturer. Their shared vision includes incorporating carbon capture and autothermal reforming (ATR) into the ammonia production process, with the ambitious goal of capturing up to 90% of the plant’s carbon dioxide emissions. While it’s too early to provide an exact estimate of the facility’s annual emissions, this initiative is a significant step towards carbon neutrality.

When will the engineering study for the Ascension Parish ammonia facility end?

CF Industries and Posco Holdings are actively progressing through an initial engineering design study for the proposed site, expected to conclude in the second half of 2024. Following this milestone, a final investment decision will be made, paving the way for construction and commissioning, which is estimated to take around four years.

CF Industries, currently the largest polluter in Ascension Parish and the third-largest in the state according to the EPA. And the company is determined to reduce its environmental impact. The company’s partnership with Posco Holdings in this endeavor demonstrates their commitment to sustainable industrial practices.

To support the proposed Blue Point Ammonia project in Ascension Parish, the state of Louisiana has prepared a competitive incentives package. This includes LED FastStart’s comprehensive workforce development solutions and a substantial $3 million performance-based grant for infrastructure and project development, contingent on CF Industries and Posco Holdings meeting specific investment and payroll targets. Additionally, the project is set to participate in the state’s Quality Jobs and Industrial Tax Exemption programs if it proceeds as planned.