CF Industries Holdings Inc. and renewable energy generator NextEra Energy Resources LLC, Juno Beach, Fla., on April 24 announced a Memorandum of Understanding for a joint venture to develop a zero-carbon-intensity hydrogen project at CF’s Verdigris Complex in Oklahoma. CF would be the sole offtaker of 100% of hydrogen output, using it to produce up to 100,000 st/y of zero-carbon green ammonia, which would be facilitated by debottlenecking Verdigris’ ammonia plants.
The proposed project was included in the funding application submitted to the US Department of Energy this month by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana, and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program. CF and NextEra anticipate that DOE support will be a key aspect of their evaluation process. A final investment decision has not been made for this project.
The project envisions a jointly-owned 100-megawatt (MW) electrolysis plant at the Verdigris Complex that would be powered by a dedicated 450-MW renewable energy facility developed by NextEra.
“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable, and verifiable way to reduce the lifecycle carbon footprint of the food we eat,” said Tony Will, CF President and CEO. “We are pleased to work with NextEra Energy Resources to explore how best green hydrogen could help accelerate the adoption of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the United States and contribute to decarbonizing the agriculture supply chain.”
“NextEra Energy Resources is committed to leading the decarbonization of the American economy, and the agriculture industry is fundamental to that goal,” said Rebecca Kujawa, NextEra President and CEO. “We are honored to work with CF Industries to bring green hydrogen production to its Verdigris Complex while also creating additional jobs and economic benefits for the state of Oklahoma.”
CF is already constructing North America’s first commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 st/y of green ammonia production beginning in 2024 (GM Oct. 30, 2020), and it is pursuing various blue ammonia opportunities (GM March 3, 2023).