(RTTNews) - Ammonia producer CF Industries Holdings Inc. (CF) announced Tuesday that it has signed a memorandum of understanding or MOU with JERA Co., Inc., a Japanese energy generator, for the supply of up to 500,000 metric tonnes per year of clean ammonia beginning in 2027.
The companies expect to evaluate a range of potential supply options, including an equity investment alongside CF Industries to develop a greenfield clean ammonia facility in Louisiana and a supplementary long-term offtake agreement from CF Industries' Donaldsonville Complex in Louisiana.
The MOU follows a supplier comparison and evaluation process for the procurement of clean ammonia that JERA initiated in February 2022 for the world's first commercial scale ammonia co-firing operations.
The company noted that the clean ammonia will be required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia. It will be co-fired with coal at JERA's Hekinan Thermal Power Station in order to reduce carbon dioxide or CO2 emissions from the facility. Ammonia does not emit CO2 when combusted.
CF Industries noted that JERA has successfully concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at its Hekinan power plant.
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