Mitsui and CF Industries Partner on New Blue Ammonia Plant

Ammonia marketer Mitsui & Co. and ammonia manufacturer CF Industries are teaming up to develop a new greenfield blue ammonia plant in the United States to meet a projected rise in demand for the product over the comings years.

The two firms have an exclusive right to purchase a location in the US Gulf Coast region to open the facility. CF Industries and Mitsui are also in the process of selecting a technology provider for blue ammonia production assets.

“Our work with Mitsui has reinforced our shared belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully in the second half of the decade,” Tony Will, president and chief executive officer of CF Industries Holdings Inc. said in a release. “We believe that the United States offers considerable advantages for blue ammonia production due to access to plentiful and low-cost natural gas, the regulatory and legal framework in place, and the geology suitable for permanent carbon sequestration.”

CF Industries will own 52% of the facility and Mitsui will hold a 48% stake. Under the terms of the partnership, Mitsui will oversee marketing and distribution of blue ammonia in the Asian market. In turn, CF Industries will operate the facility and maintain it.

“We look forward to working with CF Industries to develop the low-carbon ammonia in the United States. Energy solutions remain a strategic focus area for Mitsui; thus, we are excited to commence this new business opportunity with CF Industries in light of global climate action,” said Takashi Furutani, executive managing officer and chief operating officer, Basic Materials for Mitsui, in a statement. “As a responsible member of the global business community, we will continue to contribute to creating an eco-friendly and sustainable future.”

A front-end engineering design (FEED) study will be launched in the near future, a process that typically takes nine to 12 months to complete. The companies plan to make a final investment decision on construction of the plant in 2023. Operations are projected to begin at the site in 2027.