CF Industries and LOTTE CHEMICAL Corporation Investigating Joint Clean Ammonia Project in the US

  • 17-Mar-2023
  • Journalist: Jaideep

US: CF Industries Holdings, Inc. and LOTTE CHEMICAL Corporation have recently entered a memorandum of understanding (MOU) to investigate the use of clean Ammonia production technologies in South Korea. Through this joint exploration, the two companies are looking to establish long-term clean Ammonia offtake into the country.

CF Industries and a South Korean company announced that they have signed a memorandum of understanding (MOU) to develop and invest in an environmentally friendly Ammonia production facility in the United States. The companies anticipate that the US - with its plentiful low-cost natural gas, well established regulatory frameworks, and suitability for carbon sequestration - offers vast advantages for this eco-friendly form of Ammonia production. The MOU also states both parties will use innovative carbon capture and sequestration methods to reduce CO2 emissions from the process, to ensure it meets South Korea's green standards.

South Korean companies have agreed to quantify the expected demand for clean Ammonia for power generation, bunkering, and other sectors. This workstream will ensure that there is a full understanding of the long-term offtake volume expectations associated with the potential new clean Ammonia facility. Every factor from regulatory constraints to safety and environmental concerns are considered in assessing this demand.

LOTTE is investing 6 trillion won in order to produce and sell 1.2 million tons of clean hydrogen by 2030, as part of its efforts to develop a global clean Ammonia supply chain for its hydrogen energy business. Clean Ammonia (NH3) serves as an effective carrier and storage mechanism for hydrogen, making it a safe and efficient way to support the growth of global clean energy supply and carbon reduction.

CF Industries has been leading the way in decarbonizing Ammonia production since 2020. The company is constructing a CO2 dehydration and compression facility at its Donaldsonville Complex, as well as conducting a front-end engineering and design study to construct a greenfield clean Ammonia facility utilizing carbon capture and sequestration (CCS) at its Blue Point Complex in Louisiana.

Additionally, CF Industries is constructing North America’s first commercial scale green Ammonia capacity at its Donaldsonville Complex, which could enable up to 20,000 tons of green Ammonia production starting in 2024. By 2025, their CO2 dehydration and compression facility could enable the permanent sequestration of up to 2 million tons of CO2 per year.

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