The Clean Energy Opportunity
We are committed to decarbonize our network and aggressively scale our ability to produce green and blue ammonia, positioning CF Industries at the forefront of clean hydrogen and ammonia supply.
Green hydrogen and ammonia are expected to be critical contributors to the world achieving net-zero carbon emissions by 2050. Industry experts project hydrogen will meet approximately 20% of the world’s energy need by 2050, up from less than 1% today. Ammonia, which is composed of three-parts hydrogen and one-part nitrogen, is a highly efficient transport and storage mechanism for hydrogen as well as a fuel in its own right.
As the world’s largest ammonia producer, CF Industries’ current asset base and technical expertise are well-situated to meet the anticipated demand for hydrogen and ammonia from green and low-carbon sources. Our strategy is to leverage our unique assets and capabilities to accelerate the world’s transition to clean energy.
Our existing scale and commitment to produce green and zero-carbon ammonia establishes us as a clear leader in providing clean fuels for a sustainable world.
- We are the world’s largest manufacturer of ammonia, producing approximately 10 million tons of ammonia per year at nine manufacturing complexes. This means we already produce nearly 2 million tons of hydrogen on average annually as a chemical component of ammonia.
- We are the safest and most efficient operators in our industry, with deep technical expertise, enabling superior capacity utilization compared to our peers.
- And we have the world’s largest and most integrated ammonia production and distribution network, with the ability to serve demand on all continents.
Our approach will focus on green ammonia production, which refers to ammonia produced through a carbon-free process, and blue ammonia, which relates to ammonia produced by conventional processes but with CO2 removed through carbon capture and sequestration (CCS) and other certified carbon abatement projects.
Our initial efforts include:
- Board-authorized green ammonia project to be built at the Donaldsonville Nitrogen Complex
- Carbon dioxide (CO2) sequestration and other carbon abatement projects to enable blue ammonia production in development
- Comprehensive ESG goals, covering critical environmental, societal, and workforce imperatives, including a dramatic reduction in carbon emissions across its global network
- 25% reduction in CO2e emissions intensity by 2030 and net-zero carbon emissions by 2050
- Executive compensation tied directly to ESG goals
Green and Blue Ammonia Investments
CF Industries’ Board of Directors approved an initial green ammonia project at the company’s flagship Donaldsonville Nitrogen Complex to produce approximately 20,000 tons per year of green ammonia. The company will install a state-of-the-art electrolysis system at Donaldsonville to generate carbon-free hydrogen from water that will then be supplied to an existing plant to produce green ammonia.
Additionally, the company is developing carbon capture and storage and other carbon abatement projects across its production facilities. The implementation of these projects will enable CF to produce blue ammonia. The company estimates that over time it could produce approximately 3.5 million tons of blue ammonia per year, which represents about one-third of its annual ammonia production capacity, without affecting its current product mix.
In order to execute these initiatives, CF is collaborating with leading technology companies, and has signed Memorandums of Understanding with ThyssenKrupp and Haldor Topsoe. The Company is also in discussions with global utilities and maritime transportation providers that have announced their intention to use low-carbon ammonia directly as a fuel.
Comprehensive ESG Goals
In line with our commitment to the clean energy economy, we have published comprehensive environmental, social and governance goals, including a 25% reduction in CO2e emissions intensity by 2030 and net-zero carbon emissions by 2050. Additionally, executive compensation is tied directly to ESG goals.
See all our ESG goals here.