CF Industries Holdings Inc., Deerfield, Ill., plans to invest $198.5 million to construct a CO2 compression and dehydration unit at its Donaldsonville complex in Louisiana’s Ascension Parish in an effort to reduce carbon emissions at what it said is the largest ammonia production facility in the world. The project would create 12 new direct jobs with average salaries of $100,000 per year, plus benefits.
“We believe that ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia for this purpose will grow meaningfully in the coming years,” said Tony Will, CF President and CEO. “We are pleased to be able to leverage our previous investments in Louisiana to add CO2 processing technology to our Donaldsonville complex that will enable a significant volume of blue ammonia production by the middle of the decade. This will position CF Industries and Louisiana at the forefront of this emerging global market.”
CF estimates this project would enable up to 6,000 tons of process CO2 per day – as much as 2 million tons per year – to be captured, liquefied, and transported via pipeline to a sequestration site yet to be determined. This process would enable the company to produce up to 1.7 million tons of blue ammonia annually.
“To achieve our goal of net zero emissions by 2050, Louisiana must simultaneously increase new clean energy investments and decrease current greenhouse gas emissions,” Gov. John Bel Edwards said. “CF Industries’ plan to add carbon capture capabilities to its Donaldsonville plant accomplishes that, while stimulating economic activity and creating high-paying jobs in Ascension Parish. We applaud the company’s commitment to sustainability and encourage other industry leaders to recognize that decarbonization is good for both our economy and our climate.”
CF’s application for participation in the State of Louisiana’s Industrial Tax Exemption program has received Board of Commerce and Industry and all necessary local government entity approvals. The company is also expected to utilize the state’s performance-based Quality Jobs program.