CF Industries Signs MOU with JERA for Supply of up to 500,000 Metric Tonnes Per Year of Clean Ammonia
January 17, 2023 at 01:01 am EST
CF Industries Holdings, Inc. announced that it has signed a memorandum of understanding (MOU) with JERA Co., Inc. The execution of the MOU is the result of a supplier comparison and evaluation process for the procurement of clean ammonia that JERA initiated in February 2022 for the worldÃs 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 JERAÃs Hekinan Thermal Power Station in order to reduce carbon dioxide (CO2) emissions from the facility. 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. The MOU establishes a framework for the companies to assess how CF Industries would best supply JERA with clean ammonia under a long-term offtake 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 offtake agreement from CF Industriesà Donaldsonville Complex in Louisiana.