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CF Industries Holdings, Inc. (NYSE: CF) today announced that it has signed an engineering and procurement contract with thyssenkrupp for the Company’s green ammonia project at its Donaldsonville, Louisiana, manufacturing complex.
CF Industries has signed an engineering and procurement contract with thyssenkrupp to supply a 20 megawatt (MW) alkaline water electrolysis plant to produce green hydrogen at the Company’s Donaldsonville, Louisiana, manufacturing complex
Construction and installation, which will be managed by CF Industries, is expected to begin in the second half of 2021 and to finish in 2023, with the cost of the initial project fitting within the Company’s annual capital expenditure budget
CF Industries will integrate the carbon-free hydrogen generated by the electrolysis plant into existing ammonia synthesis loops to enable the production of 20,000 tons per year of green ammonia
When complete in 2023, the Donaldsonville green ammonia project will be the largest of its kind in North America
"Today we launch a new era for CF Industries as we sign a definitive agreement to develop the first commercial-scale green ammonia project in North America," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "This project highlights the competitive advantage our world class ammonia production network offers to industries sourcing carbon-free energy and reinforces our commitment to make significant progress in reducing our carbon footprint by 2030."
Ammonia as a Clean Energy Source
As countries around the world work to reach net-zero carbon emissions by 2050, hydrogen has emerged as a leading source of clean energy. Industry experts project hydrogen will meet approximately 20% of the world’s energy needs by 2050, up from less than 1% today. Ammonia is a critical enabler for the storage and transport of hydrogen and can also be a clean fuel in its own right.
CF Industries, the world’s largest producer of ammonia, is pursuing initiatives to support this clean energy future. These include the production of green ammonia – ammonia produced using hydrogen from carbon-free sources – and blue ammonia – ammonia produced with carbon dioxide removed through carbon capture and sequestration and other certified carbon abatement projects.
Donaldsonville Green Ammonia Project
The Company’s first green ammonia project will be implemented at its Donaldsonville, Louisiana, manufacturing complex. The project will utilize a 20 MW alkaline water electrolyzer developed by thyssenkrupp. The modular electrolyzer technology allows additional units to be added that leverage the Donaldsonville site infrastructure, enabling production to scale in the future.
CF Industries will allocate renewable energy purchased across its network from available grid-connected sources to match 100% of the electricity needed by the electrolyzer to separate water into carbon-free hydrogen and oxygen. The electrolyzer will be integrated into existing ammonia plants at Donaldsonville where atmospheric nitrogen will be fixed with the carbon-free hydrogen to produce green ammonia.
"We are pleased to partner with thyssenkrupp on our first green ammonia project at our Donaldsonville facility," said Ashraf Malik, senior vice president, manufacturing and distribution, CF Industries Holdings, Inc. "Their established and reliable technology complements our commitment to the clean energy economy. By integrating the water electrolysis plant into existing ammonia production at Donaldsonville, we will build on our ammonia manufacturing expertise and identify efficiencies that will allow us to scale production in the future."
The initial project will enable the production of approximately 20,000 tons per year of green ammonia and is expected to be the largest project of its kind in North America at completion.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. Our employees are focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management. We are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the company’s website at www.cfindustries.com and encourages those interested in the company to check there frequently.
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