CF Industries proposes new $2B low-carbon ammonia plant in Ascension Parish

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Ammonia producer CF Industries Holdings last week announced it is evaluating the feasibility of constructing a low-carbon ammonia production plant at its Blue Point Complex in Ascension Parish.

The proposed facility is expected to cost more than $2 billion and would be developed jointly by CF Industries and POSCO Holdings, South Korea’s largest steelmaker.

If the project moves forward as outlined, CF Industries expects to create 50 new jobs with average annual salaries of more than $106,000, while retaining 541 current positions, according to Louisiana Economic Development. 

The companies are exploring the use of autothermal reforming ammonia production technology for the proposed facility. ATR technology, when combined with carbon capture and sequestration, is expected to reduce emissions from the ammonia production process by more than 90% compared to conventional plants without CCS.

CF Industries and POSCO expect to complete an initial front-end engineering design study on the proposed site in the second half of 2024 and make a final investment decision for the project shortly thereafter. In 2022, CF Industries announced two major projects in Louisiana: a $198.5 million plan to add carbon capture and sequestration capability to its existing ammonia production facility in Donaldsonville, and a proposed $2 billion world-scale low-carbon ammonia production facility in Ascension Parish.

The state of Louisiana is offering CF Industries an incentives package that would include LED FastStart’s workforce development programs and a $3 million performance-based grant for infrastructure and project development. The company is also expected to participate in the state’s Quality Jobs and Industrial Tax Exemption programs if the project moves forward as planned. See the announcement.