Mitsui & Co., Inc. (8031: JP), one of the leading ammonia marketers in the world, and CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, today announced a memorandum of understanding that will guide the companies in a joint exploration of the development of blue ammonia projects in the United States.
Blue ammonia generally relates to the production of ammonia (NH3) with its byproduct carbon dioxide (CO2) removed through carbon capture and sequestration (CCS). Demand for blue ammonia is expected to grow significantly as a decarbonized energy source, both for its hydrogen content or as a fuel itself.
“As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “CF Industries and Mitsui share a belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully. We are pleased to collaborate with Mitsui and leverage the world class expertise of both companies to explore the development of blue ammonia capacity in the United States to meet this expected demand.”
Under the memorandum of understanding, CF Industries and Mitsui plan to execute various preliminary studies on the feasibility of blue ammonia production in the United States. Among the areas that the companies will study include establishing blue ammonia supply and supply chain infrastructure, CO2 transportation and storage, expected environmental impacts, and blue ammonia economics and marketing opportunities in Japan and in other countries.
In 2020, CF Industries announced an evolution of its strategy to focus on supporting and accelerating the world’s transition to a clean energy economy, with a focus on decarbonizing its ammonia production network. Efforts to date include a definitive agreement to develop the first commercial-scale green ammonia project in North America at is Donaldsonville, Louisiana, complex, as well as initiatives to develop CCS opportunities and other CO2 abatement projects to enable blue ammonia production. CF Industries has also established goals for net zero carbon emissions by 2050, with a 25% reduction in emissions intensity by 2030.
