CF Industries hopes to supply Japanese power plant

DEERFIELD - CF Industries Holdings Inc., the world's largest producer of ammonia, said Tuesday it has signed a memorandum of understanding with Jera Co. Inc., Japan's largest energy generator, regarding the supply of up to 500,000 metric tons per year of clean ammonia beginning in 2027.

The execution of the agreement is a result of a supplier comparison and evaluation process that Jera initiated in February 2022 for the world's first commercial scale ammonia co-firing operations.

The clean ammonia, which will be required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia, will be co-fired with coal at Jera's Hekinan Thermal Power Station in order to reduce carbon dioxide emissions from the facility, CF Industries said.

The agreement establishes a framework for the companies to assess how CF Industries would best supply Jera with clean ammonia under a long-term off-take agreement. The companies expect to evaluate a range of potential supply options, including an equity investment alongside CF Industries to develop a greenfield clean ammonia facility in Louisiana and a supplementary long-term off-take agreement from CF Industries' Donaldsonville Complex in Louisiana.

Ammonia does not emit CO2 when combusted. Jera has successfully concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at its Hekinan power plant.

"We are pleased to continue to build our relationship with Jera as we advance our shared commitment to accelerate the world's transition to clean energy," said Tony Will, president and chief executive officer, CF Industries Holdings Inc.