CF Industries, JERA, Mitsui Form $4 Billion JV To Build Low-Carbon Ammonia Plant In Louisiana

CF Industries Holdings, Inc. CF on Tuesday inked a joint venture (JV) with Japanese energy company JERA Co., Inc. and global trading giant Mitsui & Co., Inc.

After JV formation, CF Industries will hold 40% ownership, JERA 35% ownership, and Mitsui 25% ownership in the company.

The joint venture will build an autothermal reforming (ATR) ammonia production facility at CF Industries' Blue Point Complex in Louisiana, including a CO₂ dehydration and compression unit to prepare captured emissions for transport and sequestration.

The project is estimated to cost around $4 billion, with funding shared among the partners based on their ownership stakes.

The facility is projected to have a nameplate capacity of approximately 1.4 million metric tons per year and capture over 95% of CO₂ emissions.

Pre-construction and engineering at CF Industries' Blue Point Complex in Ascension Parish, Louisiana, are expected to begin in 2025, construction in 2026, and production by 2029.

1PointFive, a CCUS company and Occidental subsidiary, plans to transport and store about 2.3 million metric tons of CO₂ per year at its Pelican Sequestration Hub in Louisiana.

CF Industries also plans to operate and maintain the facility and invest $550 million in developing supporting infrastructure, including storage and loading systems.

Yukio Kani, JERA Global CEO and Chair, said, "This Blue Point project is a testament to the strong alliances we are building to advance low-carbon solutions. The U.S. remains a cornerstone market for JERA, and this initiative underscores our long-term commitment to expanding our presence with diversified and sustainable energy projects."

Mr. Kenichi Hori, President and Chief Executive Officer of Mitsui & Co., Ltd, added, "Mitsui will establish a low-carbon ammonia value-chain worldwide by leveraging its presence in the US gas value chain from natural gas to chemicals including this project, and our strength and track record in the global trading of ammonia."

As of December 2024, CF's cash and cash equivalent stood at $1.61 billion.

Investors can gain exposure to the stock via the Macquarie ETF Trust Macquarie Energy Transition ETF PWER and the First Trust Materials AlphaDEX Fund FXZ.

Price Action: CF shares are up 4.05% at $71.25 at the last check Wednesday.

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