A general view of the CF industries plant in Billingham, Britain September 22, 2021. Picture taken with a drone.
The initiative follows the passage of major climate legislation in the United States in 2022, signed into law by former President Joe Biden. This legislation, the most extensive of its kind in U.S. history, seeks to boost clean energy development, including products like low-carbon ammonia. The facility is anticipated to qualify for the 45Q tax credit, which supports the sequestration of approximately 2.3 million metric tons of carbon dioxide (CO2) annually. This tax incentive underscores the project’s role in reducing greenhouse gas emissions.
The new facility will feature an autothermal reforming (ATR) ammonia production unit, paired with a CO2 dehydration and compression system. This setup will prepare captured CO2 for transportation and permanent storage. Occidental’s carbon capture subsidiary, 1PointFive, will handle the transportation and sequestration process, ensuring the captured carbon is managed effectively. Once operational, the plant is projected to produce 1.4 million metric tons of ammonia each year, making it the world’s largest ammonia production site by nameplate capacity, according to CF Industries.
Ownership of the joint venture is divided among the partners: CF Industries will hold a 40% stake, JERA will own 35%, and Mitsui will account for the remaining 25%. Funding for the $4 billion project will be proportional to each partner’s share. The collaboration combines expertise from the energy, investment, and chemical sectors to deliver a facility that supports cleaner industrial processes.
This development reflects growing momentum in sustainable energy investments, driven by both policy support and corporate initiatives. For CF Industries, the project strengthens its position in the ammonia market while contributing to environmental goals. JERA and Mitsui bring additional resources and global perspectives, enhancing the venture’s potential impact. As production begins in 2029, the facility is expected to set a benchmark for large-scale, low-carbon ammonia manufacturing, offering a model for future projects worldwide.
