Core Viewpoint - CF Industries, JERA, and Mitsui have formed a joint venture to develop a low-carbon ammonia production facility, marking a significant advancement in the low-carbon ammonia value chain to meet global demand [1][4]. Group 1: Joint Venture Structure and Investment - The joint venture will have CF Industries holding a 40% stake, JERA 35%, and Mitsui 25% [2]. - The facility will be built at CF Industries' Blue Point Complex in Louisiana, with an estimated construction cost of $4 billion, funded according to ownership shares [2]. - CF Industries plans to invest approximately $550 million in scalable infrastructure at the site, which includes storage and loading systems [3]. Group 2: Production Capacity and Timeline - Once completed, the plant will have an annual nameplate capacity of about 1.4 million metric tons, making it the largest ammonia production facility globally by nameplate capacity [3]. - Production is expected to commence in 2029 [3]. Group 3: Market Context and Demand - The joint venture aims to create a reliable and cost-effective low-carbon ammonia value chain to address the anticipated strong global demand for low-carbon ammonia in various applications [4]. - CF Industries expects a positive global supply-demand balance due to below-normal inventories and challenging production economics for marginal producers in Europe [6]. Group 4: Agricultural Insights - CF anticipates higher average U.S. corn returns compared to soybeans, driven by rising corn prices and lower yield predictions for 2024, which will likely boost nitrogen demand [7]. - Nitrogen imports to Brazil are expected to remain high in 2025 due to anticipated corn plantings and minimal domestic nitrogen output [7]. - Urea inventory in India is projected to be low due to strong domestic demand and lower-than-targeted domestic output [7].
CF Forms JV With JERA & Mitsui for Low-Carbon Ammonia Production