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Released December 05, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As it wraps up adding a low-carbon ammonia unit at an operational complex in Louisiana, CF Industries Holdings Incorporated (NYSE:CF) (Deerfield, Illinois) recently announced it has closed its acquisition of a Louisiana ammonia production facility for $1.67 billion.
CF Industries purchased an ammonia plant in Waggaman, Louisiana and related assets from Incitec Pivot Limited (IPL) (Southbank, Australia). Under the terms of the agreement, about $425 million of the purchase price will be allocated to a long-term ammonia offtake agreement to supply an IPL subsidiary, explosives manufacturer Dyno Nobel (Salt Lake City, Utah), with up to 200,000 tons of ammonia per year.
"We are pleased to grow our industry-leading ammonia production capabilities with the addition of IPL's Waggaman ammonia production facility and team," Tony Will, chief executive officer of CF Industries, said in a related press release. "This transaction deploys our capital efficiently, delivering immediate profitable growth by adding one of the newest ammonia production units in North America into our existing network while advancing our long-term strategic focus on low-carbon ammonia as a clean energy source."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Plant Database can click here to read a detailed profile on the Waggaman plant.
The company added: "CF Industries anticipates implementing carbon capture and sequestration (CCS) technologies at the site on an accelerated timeline, increasing its network's low-carbon ammonia production capability."
CF Industries' addition of a $450 million green ammonia unit at its Donaldsonville, Louisiana, complex is nearing mechanical completion, Chief Financial Officer Christpher Bohn said on the company's third-quarter earnings conference call November 2. The new unit will produce 20,000 tons per year of green ammonia from feedstock supplied by a new, $100 million green hydrogen unit addition, expected to wrap up on the same timeline as the former project; the hydrogen unit will utilize a 20-megawatt (MW) electrolyzer.
The hydrogen project is part of the HALO Hydrogen Hub, a collaborative effort between governments and private entities in Oklahoma, Louisiana and Arkansas, aimed at developing and deploying a hydrogen network in the three states--from feedstock to production, transportation and delivery and storage. However, the hub was not selected by the Biden administration to receive a portion of $7 billion in funding from the Bipartisan Infrastructure Law to develop U.S. hydrogen hubs.
Subscribers to Industrial Info's GMI Chemical Processing Project and Plant databases can read detailed reports on the green ammonia and hydrogen projects and click here for a profile on the Donaldsonville complex.
As part of a 52:48 joint venture with Mitsui & Co., Ltd. (Tokyo, Japan), CF Industries plans to build a carbon dioxide (CO2) dehydration and compression unit at Donaldsonville, which will enable the company to permanently sequester 2 million tons of CO2 per year from plant production. This project, which is on track for startup in early 2025, will support a 1.7 million-ton-per-year blue ammonia project. Whereas green hydrogen is produced from renewable energy, blue hydrogen is produced when natural gas is split into hydrogen and CO2; the CO2 is captured and then stored. The hydrogen then can be combined with nitrogen to produce blue ammonia.
As part of an agreement with Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), ExxonMobil will transport and permanently store the captured CO2 in geologic storage it owns in Vermilion Parish. And ExxonMobil has signed an agreement with EnLink Midstream (NYSE:ENLC) (Dallas, Texas) to use EnLink's transportation network to deliver CO2 to permanent geologic storage.
Subscribers can click here to read the project report.
On the most recent earnings call, Bohn said the company projects capital expenditures for 2023 in the range of $450 million to $500 million.
Earlier this month, Air Products and Chemicals Incorporated (NYSE:APD) (Lehigh Valley, Pennsylvania) announced it is moving forward with another effort in Louisiana to support hydrogen/ammonia production, with construction of a $7 billion grassroot complex in Geismar. For more information, see November 8, 2023, article - Air Products' Blue Hydrogen Project in Louisiana Moves Forward with Heftier Price Tag.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
CF Industries purchased an ammonia plant in Waggaman, Louisiana and related assets from Incitec Pivot Limited (IPL) (Southbank, Australia). Under the terms of the agreement, about $425 million of the purchase price will be allocated to a long-term ammonia offtake agreement to supply an IPL subsidiary, explosives manufacturer Dyno Nobel (Salt Lake City, Utah), with up to 200,000 tons of ammonia per year.
"We are pleased to grow our industry-leading ammonia production capabilities with the addition of IPL's Waggaman ammonia production facility and team," Tony Will, chief executive officer of CF Industries, said in a related press release. "This transaction deploys our capital efficiently, delivering immediate profitable growth by adding one of the newest ammonia production units in North America into our existing network while advancing our long-term strategic focus on low-carbon ammonia as a clean energy source."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Plant Database can click here to read a detailed profile on the Waggaman plant.
The company added: "CF Industries anticipates implementing carbon capture and sequestration (CCS) technologies at the site on an accelerated timeline, increasing its network's low-carbon ammonia production capability."
CF Industries' addition of a $450 million green ammonia unit at its Donaldsonville, Louisiana, complex is nearing mechanical completion, Chief Financial Officer Christpher Bohn said on the company's third-quarter earnings conference call November 2. The new unit will produce 20,000 tons per year of green ammonia from feedstock supplied by a new, $100 million green hydrogen unit addition, expected to wrap up on the same timeline as the former project; the hydrogen unit will utilize a 20-megawatt (MW) electrolyzer.
The hydrogen project is part of the HALO Hydrogen Hub, a collaborative effort between governments and private entities in Oklahoma, Louisiana and Arkansas, aimed at developing and deploying a hydrogen network in the three states--from feedstock to production, transportation and delivery and storage. However, the hub was not selected by the Biden administration to receive a portion of $7 billion in funding from the Bipartisan Infrastructure Law to develop U.S. hydrogen hubs.
Subscribers to Industrial Info's GMI Chemical Processing Project and Plant databases can read detailed reports on the green ammonia and hydrogen projects and click here for a profile on the Donaldsonville complex.
As part of a 52:48 joint venture with Mitsui & Co., Ltd. (Tokyo, Japan), CF Industries plans to build a carbon dioxide (CO2) dehydration and compression unit at Donaldsonville, which will enable the company to permanently sequester 2 million tons of CO2 per year from plant production. This project, which is on track for startup in early 2025, will support a 1.7 million-ton-per-year blue ammonia project. Whereas green hydrogen is produced from renewable energy, blue hydrogen is produced when natural gas is split into hydrogen and CO2; the CO2 is captured and then stored. The hydrogen then can be combined with nitrogen to produce blue ammonia.
As part of an agreement with Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), ExxonMobil will transport and permanently store the captured CO2 in geologic storage it owns in Vermilion Parish. And ExxonMobil has signed an agreement with EnLink Midstream (NYSE:ENLC) (Dallas, Texas) to use EnLink's transportation network to deliver CO2 to permanent geologic storage.
Subscribers can click here to read the project report.
On the most recent earnings call, Bohn said the company projects capital expenditures for 2023 in the range of $450 million to $500 million.
Earlier this month, Air Products and Chemicals Incorporated (NYSE:APD) (Lehigh Valley, Pennsylvania) announced it is moving forward with another effort in Louisiana to support hydrogen/ammonia production, with construction of a $7 billion grassroot complex in Geismar. For more information, see November 8, 2023, article - Air Products' Blue Hydrogen Project in Louisiana Moves Forward with Heftier Price Tag.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
