Clean Energy Initiatives

CF Industries believes that we have an opportunity to strengthen our existing business and set the Company on a meaningful growth trajectory

We do so by investing in clean energy initiatives that focus on doing what we do best - produce ammonia and ammonia-derived products - while significantly reducing the carbon emissions associated with the production of ammonia. Our strategic focus on decarbonizing our operations reduces our environmental impact and enables us to produce products with a lower carbon intensity, unlocking their use for clean energy purposes, from power generation and maritime fuel to reducing the carbon footprint of food production.

CF Industries invested approximately $100 million to install a 20MW alkaline water electrolyzer manufactured by thyssenkrupp Nucera.

North America's First Commercial Scale Green Ammonia Capacity

At the end of 2023, the installation of one of the world's largest alkaline water electrolyzers at our Donaldsonville Complex in Louisiana was mechanically complete, with commissioning activities underway.

Once operational, the unit will generate hydrogen from water through an electrolysis process that produces no CO2 emissions. We will supply the hydrogen to existing ammonia plants to produce up to 20,000 tons of green ammonia annually, representing North America’s first commercial-scale green ammonia capacity.​

 

Landmark Carbon Capture and Sequestration Projects

CF Industries is leveraging carbon capture and sequestration (CCS) technology to significantly reduce CO2 emissionsm, which are a byproduct of the ammonia production process, from its manufacturing network. We currently have two projects in flight that, when operational, will enable 2.5 million metric tons of carbon dioxide that would otherwise be emitted to the atmosphere to be sequestered in permanent geologic storage. 

Construction in progress for Donaldsonville Dehydration and Compression Unit

Completed cooling tower and compressor foundations, along with pipe racks for CO2 and utility piping being erected (August 2024).

Donaldsonville Complex CCS Project

CF Industries is investing approximately $200 million to construct a carbon dioxide dehydration and compression unit at its Donaldsonville, Louisiana, Complex to enable the transport and sequestration of carbon dioxide in permanent geologic storage. Beginning in 2025, our invesmtent in CCS will result in the safe and secure sequestration deep underground of up to 2 million tons of CO2 annually that would otherwise be emitted to the atmosphere.  The impact is equivalent to removing emissions from more than 445,000 gasoline powered cars – about one-third of the gasoline-powered cars in operation in Louisiana today – from the road each year.

ExxonMobil will transport and sequester the carbon dioxide.

Yazoo City, Mississippi, Complex

CF Industries' Yazoo City, Mississippi, Complex is the site of the Company's second major carbon capture and sequestration project.

Yazoo City Complex CCS Project

In July 2024, CF Industries announced that it was moving forward with a carbon capture and sequestration project at its Yazoo City, Mississippi, Complex that is expected to reduce carbon dioxide emitted to the atmosphere from the facility by up to 500,000 metric tons annually. As part of the project, the Company has signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of the CO2. Sequestration is expected to start in 2028.

CF Industries will invest approximately $100 million into its Yazoo City Complex to build a CO2 dehydration and compression unit to enable up to 500,000 metric tons of CO2 generated as a byproduct of the ammonia production process and subsequently captured to be transported and stored. 

Carbon Capture and Sequestration Overview

$300M Investment

CF Industries is investing approximately $300 million to build two carbon dioxide dehdyration and compression units that will enable the transport and sequestration of CO2

Leveraging Expertise

CF Industries is partnering with industry leaders, such as ExxonMobil, to sequester CO2, leveraging their decades of experience securely sequestering CO2 underground and extensive knowledge and understanding of subsurface geology. 

Enables Low-Carbon Ammonia

Our CCS projects will enables significant volumes of low-carbon ammonia that will be available to support the decarbonization goals of end users

Carbon capture and sequestration is:

  • Safe and proven technology: Industry has decades of commercial experience safely storing CO2 geologically at large scale
  • Heavily regulated: CCS projects, including CO2 storage, require both state and federal permitting after extensive review and analysis
  • A job creator: CCS provides positive economic impacts for the surrounding communities.
  • Necessary: The International Energy Agency has concluded that “reaching net zero will be virtually impossible” without CCS. 

CF Industries made the first known certified natural gas purchase for use in industrial manufacturing

Addressing Scope 3 Emissions

Starting in 2023, we have purchased certified natural gas from bp as part of our comprehensive approach to decarbonizing the ammonia value chain. The certificates purchased by CF Industries are issued by not-for-profit MiQ and certify that certain natural gas produced by bp has a 90% lower methane emissions intensity - the ratio of methane emissions to natural gas produced - than the industry average. Methane emissions throughout the natural gas supply chain are a significant contributor to the lifecycle carbon intensity of ammonia production and the second largest source of Scope 3 emissions for CF Industries. 

For 2024, we entered into an agreement with bp for the purchase of 4.4 billion cubic feet of certified natural gas, which is double our purchase in 2023.

Low-Carbon Ammonia Capacity Growth

The Company’s strategic focus on decarbonizing our operations reduces our environmental impact and enables us to produce low-carbon ammonia products, which strengthens our existing business for the long-term and creates new growth opportunities that support the global energy transition. This relationship illustrates how the Company’s sustainability priorities fully align with and are ultimately embedded into our overall corporate strategy.

Beyond actions within our existing network, CF Industries is executing its strategy by evaluating new low-carbon ammonia capacity growth; forging partnerships to accelerate our timeline and bridge gaps in areas where we do not have direct control or expertise; and collaborating to build an understanding of ammonia as a safe clean energy source with a supportive regulatory environment.

Creating a Low-Carbon Ammonia Value Chain

Joint Development Agreement with JERA, Japan's Largest Energy Company

We have recently entered into a joint development agreement with JERA Co., Inc., Japan’s largest energy company, to explore the development of greenfield low-carbon ammonia production capacity at our Bluepoint Complex in Louisiana. JERA intends to replace coal with low-carbon clean ammonia in its existing thermal coal power plants to reduce CO2 emissions.

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CF Industries and POET to Demonstrate the Use of Low-Carbon Fertilizer in Corn Production to Reduce Carbon Intensity of Ethanol

CF Industries and POET LLC, the world’s largest producer of biofuel and a global leader in sustainable bioproducts, announced in July 2024 a collaboration to pilot the use of low-carbon ammonia fertilizer to reduce the carbon intensity of corn production and ethanol. Producing ethanol with corn grown using low-carbon ammonia can reduce the carbon intensity of ethanol up to 10 percent.

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CF Industries Working with CHS Inc. on Production and Distribution of Low-Carbon Nitrogen Fertilizer

CF Industries, one of the world’s largest producers of nitrogen fertilizer, is working with CHS Inc., the nation’s leading agribusiness cooperative, to accelerate quantifiable and certifiable agriculture and food system greenhouse gas (GHG) emission reductions through the production and distribution of low-carbon nitrogen fertilizer.

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CF Industries joins the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping to accelerate the decarbonization of the shipping industry

The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping announced that CF Industries will become a Strategic Partner, committing to a long-term strategic collaboration and contribution to the development of zero carbon technologies and solutions for the maritime industry.  

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Associations

CF Industries is a member of a number of associations focused on promoting the global hydrogen economy and ammonia as a clean fuel. They include: