Home » News » CF Industries Plans $2B Low-Carbon Ammonia Plant in Ascension Parish, Louisiana

CF Industries Plans $2B Low-Carbon Ammonia Plant in Ascension Parish, Louisiana

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.

The proposed “Blue Ammonia Production Facility in Ascension Parish” is a joint effort between 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 Ammonia Production Facility in Ascension Parish 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 Ammonia production facility in Ascension Parish project, 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.


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