Our strategy is to leverage our unique capabilities to accelerate the world's transition to clean energy.
Our focus on clean energy is a natural evolution of our existing strategy and is consistent with our existing business model. As we aggressively decarbonize our production and distribution network, we will provide clean energy in the form of nitrogen fertilizer to continue feed the crops that feed the world. Additionally, we will provide a clean energy source to support and accelerate adoption of a broader hydrogen economy by enabling others to move away from carbon-intensive energy sources.
Our vision, mission and strategy is underpinned by our values - We Do It Right, We Do It Well, We Execute as a Team and We Take a Long-Term View
75 Years of Feeding the Crops that Feed the World
At our core, CF Industries is a producer of ammoina. For decades, we have used the Haber-Bosch process to fix atmospheric nitrogen with hydrogen from natural gas to produce anhydrous ammonia (NH3). Up to this point, we have made a business of seeling ammonia, and other derivative fertilizer products such as urea and urea ammonium nitrate (UAN), for the nitrogen value of the molecule.
Humankind's ability to produce nitrogen fertilizer has had an undeniably positive effect on the world. Along with advancements in seed technology and farming practices, the growing use of nitrogen fertilizer and other nutrients dramatically increased food production in the second half of the 1900s and lifted countless people out of hunger. At the same time, because fertilizer increases yield, it allows more food to be grown on fewer acres. This reduces the amount of land cleared for agriculture, preserving carbon sequestering forests and important wildlife ecosystems.
Clean Energy Opportunity
Although our manufacturing complexes are some of the most efficient in the global industry, the production process of ammonia is energy intensive and therefore results in significant carbon emissions. Because of this, we have committed to decarbonizing our production network. At the same time, this opens an opportunity to help the broader economy decarbonize as well.
The global focus on climate change and greenhouse gas emissions has created a push to decarbonize economies. To achieve global climate goals and reduce GHG emissions, the world needs to dramatically increase and scale clean energy technology. Hydrogen, which can be produced with zero carbon emissions through the electrolysis of water, has emerged as a leading candidate for a scalable clean energy source.
The key to unlocking hydrogen as a clean fuel is the ability to store and transport it for use – which is a challenge many renewable energy sources face. This is what makes ammonia the key enabler for a clean energy future. Ammonia is a highly efficient and stable mechanism for the storage and transport of hydrogen. Ammonia’s energy density allows for more economic transport of energy compared to liquid hydrogen, gaseous hydrogen and especially lithium batteries. Additionally, a global ammonia transportation and storage infrastructure already exists at over 120 seaports.
As a result, given the expected demand growth for hydrogen as a clean energy source, we believe that demand for green and net-zero-carbon (blue) ammonia as a storage and transport medium for hydrogen, as well as a clean fuel in its own right, will grow dramatically. Therefore, the ability to produce green and blue ammonia at scale opens up a significant market opportunity in the coming years as countries and industries shift to the use of clean fuels.
Learn more about the steps we are taking in support of our clean energy strategy here.
Strategy Aligned With Our Broader Commitment to Society
Our business strategy is also aligned with our commitment to have a positive impact across the many issues important to our broad group of stakeholders.
We communicate our performance in these areas and others through our annual ESG reporting. The Company has made substantial progress in 2020 on our approach to ESG-related matters. Most notably, the Company announced a set of comprehensive ESG goals covering critical environmental, societal, and workforce imperatives. These include a dramatic reduction in carbon emissions across our global network with a commitment to achieve net-zero carbon emissions by 2050, and an intermediate goal of 25% reduction in emission intensity by 2030.
Find the latest information on sustainability progress here.