A $2bn blue ammonia facility, featuring carbon capture and sequestration technology, could soon be developed in Ascension Parish, Louisiana.

CF Industries on Wednesday (17th August) said they have agreed to develop the proposed facility with Mitsui & Co., in a move that could create 414 new jobs.

It is hoped a front-end engineering design (FEED) study will be carried out once the site and technology for the plant are finalised. It is thought the FEED study could take 9-12 months.

A final investment decision by the companies is expected to take place next year. With construction and commissioning set to take a further four years.

Tony Will, President and CEO of CF Industries Holdings, said, “CF Industries and Mitsui believe that blue ammonia will play a pivotal role in accelerating the world’s transition to clean energy and that our proposed blue ammonia production facility is an important step towards this future.”

“CF Industries has long appreciated the partnership we have had with the State of Louisiana and Ascension Parish, both as we have expanded our operations over the years and now as we decarbonize our production processes and consider new capacity growth.”

“We look forward to working with them further as we continue to evaluate our proposed blue ammonia production facility.” 

CF Industries is the world’s largest producer of ammonia, with a global manufacturing and distribution network. Just earlier this month, the firm announced a $198.5m plan to add carbon capture and sequestration capability to its existing ammonia production facility in Donaldsonville.

Welcoming CF Industries’ plans, Governor John Bel Edwards, said, “This massive, proposed investment from CF Industries would create good-paying jobs and strengthen Louisiana’s position as a leader in the clean energy transition.”

“This would be another big step toward our goal of making Louisiana carbon-neutral by 2050. We thank CF Industries for its continued commitment to Louisiana, and look forward to working with company, parish and regional economic development leaders to move the project forward.”