World’s Largest Low-Carbon Ammonia Plant Breaks Ground

Blue Point One, a joint venture between CF Industries Holdings Inc., the world’s largest producer of ammonia; JERA Company Inc., Japan’s largest energy company; and Mitsui And Company Ltd., a leading global investment and trading company, broke ground August 26 in Modeste, La., on a pioneering low-carbon ammonia plant that can serve both traditional agricultural customers and emerging energy applications.

The plant, which is expected to make use of waterborne transportation, is planned to be the world’s largest ammonia plant upon completion, with a production capacity of 1.4 million metric tons per year. Expected to be operational in 2029, Blue Point One is becoming one of the first ammonia plants in the world to leverage autothermal reforming (ATR) production technology, a method to help produce hydrogen for synthesis with nitrogen in the ammonia production process. The plant is expected to capture and permanently sequester 98 percent of the carbon dioxide generated in production, resulting in the lowest environmental footprint of any large-scale ammonia production facility in the world and supporting expanded ammonia manufacturing in the United States. Slated to begin production in 2029, the plant is estimated to create 3,900 construction jobs over four years and 100 high-paying permanent jobs.

Filling Gaps In Ag Supply

The announcement is getting significant attention from agricultural publications. Between 70 percent and 80 percent of all ammonia produced is used for agricultural fertilizer, and the region already has an established waterborne transportation network for moving bulk fertilizer shipments by barge.

Acting Secretary of the Army Adam Telle attended the groundbreaking, along with U.S. Secretary of Agriculture Brooke Rollins, U.S. Deputy Secretary of Agriculture Stephen Vaden and senior Louisiana state government and local officials.

The $3.7 billion investment is 40 percent provided by CF Industries, with JERA holding 35 percent and Mitsui 25 percent. CF Industries is investing an additional $550 million over four years in shared infrastructure that will support ammonia production, storage, vessel loading and potential future fertilizer expansion.

In addition, global gas and chemical supplier Linde will invest more than $400 million in a new on-site air-separation unit to supply oxygen and nitrogen to the Blue Point One ammonia plant. A joint venture between 1PointFive, a subsidiary of Occidental, and Enbridge Inc., an energy delivery company, will safely transport and permanently sequester carbon dioxide from the plant.

CF Industries President and Chief Executive Officer Chris Bohn said, “This facility will serve people, growing access to the reliable, domestic nitrogen supply American farmers need to feed the world, expanding our nation’s export capacity through shipping American-made energy to global markets and creating jobs in Louisiana.”

Louisiana Boost

Secretary of Louisiana Economic Development Susan Bourgeois said, “Louisiana has always been a state that produces what America and the world depend on, and Blue Point One builds directly on that legacy. From helping provide American farmers with a reliable domestic supply of fertilizer to expanding our ability to manufacture and export critical products here at home, this project strengthens industries that matter to our economy and our national security.”

“We are delighted to celebrate the groundbreaking of Blue Point One and sincerely thank our partners, the state of Louisiana, the local community and all stakeholders whose support has made this milestone possible,” said Mitsui and Company, Ltd. President and Chief Executive Officer Kenichi Hori. “Building on Mitsui’s long-term commitment to Louisiana, this project further strengthens the enduring partnership between the United States and Japan and advances a low-carbon ammonia value chain that contributes to supply chain resilience in the U.S., Japan and beyond.”

Ascension Parish President Clint Cointment touted the project’s benefits for the local economy: “CF Industries has long been more than an industry partner in Ascension Parish. They consistently step up to support our schools, parks and community initiatives, and the CF Blue Point project represents an even deeper investment in our people and our future. This groundbreaking is about far more than turning dirt. It is about creating good-paying jobs, strengthening our local economy and positioning Ascension Parish at the forefront of the next generation of industry.”

Featured photo caption: Dignitaries break ground on Blue Point One, which is expected to be the largest ammonia plant when it is completed, August 26 in Modeste, La. (Photo courtesy of CF Industries)