New U.S. Blue Ammonia Facility Planned for 2027 by Mitsui & Co., Ltd. and CF Industries

CF Industries will expands its ammonia production in the U.S. 

Beginning in 2024, CF Industries expects to produce up to 2 million tons per year of blue and green ammonia at its existing facilities. 

Additionally, CF and Mitsui & Co., Ltd announced a partnership to build a new ammonia production facility in the U.S. specifically for blue ammonia production. 

Blue ammonia refers to ammonia produced by conventional processes but is said to reduce carbon emissions by more than 60%. The blue ammonia process removes CO2 through carbon capture and sequestration (CCS) as well as other certified carbon abatement projects.

In total, each year, CF Industries is producing approximately 10 million tons of ammonia at nine manufacturing complexes.

Because of the planning required, the earliest the announced blue ammonia facility will begin production will be 2027. It’s expected front-end engineering and planning will take 12 months. Construction will require another four years. The geographic region announced for the plant has been somewhere in the U.S. Gulf Coast region.

The joint venture will be structured so that CF Industries will have 52% and Mitsui will have 48% ownership. CF Industries will be responsible for plant operations and maintenance. Mitsui will lead the marketing and distribution for the blue ammonia into Asia.

It’s reported the companies are concluding the selection process of a technology provider for the blue ammonia production capacity.