Blue Point One, which is a joint venture between the world’s largest producer of ammonia, CF Industries Holdings, Inc.; Japan’s largest energy company, JERA Co., Inc. – JERA; and a leading global investment and trading company, Mitsui & Co., Ltd. – Mitsui on August 26, officially started world-largest low-carbon ammonia plant construction that will cater to both traditional agricultural customers as well as emerging energy applications.
It is worth noting that world-largest low-carbon ammonia plant construction after its completion will generate a capacity of 1.4 million metric tonnes per year.
Brooke Rollins, U.S. Secretary of Agriculture, Stephen Vaden, U.S. Deputy Secretary of Agriculture, Adam Telle, Assistant Secretary of the Army – Civil Works, Julia Letlow, the U.S. Representative, along with senior Louisiana state government and local officials, attended the event.
The project highlights include –
- Blue Point One joint venture member’s investment of $3.7 billion with contributions assigned by ownership. CF Industries has 40%, JERA 35%, and Mitsui 25%.
- The Blue Point One facility in Modeste, Louisiana, is expected to be online by 2029.
- The mean annual production capacity of the ammonia plant is 1.4 million metric tonnes.
- Once operational, the plant will generate over 100 high-paying manufacturing jobs.
- Creating approximately 3,900 construction jobs over a period of four years.
- CF Industries is committing another $550 million through a period of four years in shared, scalable infrastructure allowing Blue Point One for future ammonia production and fertilizer upgrades.
- Linde will build a new on-site air separation unit in order to provide oxygen and nitrogen to the Blue Point One ammonia plant at a cost of over $400 million.
- The plant’s carbon dioxide is going to be safely transported and permanently sequestered through a joint venture between 1PointFive, which is a subsidiary of Occidental and Enbridge, Inc., the energy delivery company.
Blue Point One is scheduled to be online in 2029 and will be among the first ammonia plants in the world to make use of autothermal reforming – ATR production technology, which is a process that aids in the generation of hydrogen for synthesis with nitrogen in the ammonia production process.
The plant is projected to capture and indefinitely sequester 98% of the CO2 generated in production, thereby providing the minimal environmental footprint when it comes to any large-scale ammonia production facility in the world, thereby meeting client demands and enabling expanded ammonia manufacturing in the United States.
Blue Point Complex from CF Industries, where an ammonia plant, Blue Point One, is under construction, does have room for expansion in the future.
As per Chris Bohn, the President and Chief Executive Officer of CF Industries, “We are proud to break ground on the Blue Point One joint venture, a transformative project that brings together American energy resources, world-class engineering and partnerships, and trusted global allies. Most importantly, this facility will serve people, growing access to the reliable, domestic nitrogen supply American farmers need to feed the world, expanding our nation’s export capacity through shipping American-made energy to global markets and creating jobs in Louisiana.”
Susan Bourgeois, the Secretary of Louisiana Economic Development says that “Louisiana has always been a state that produces what America and the world depend on, and Blue Point One builds directly on that legacy. From helping provide American farmers with a reliable domestic supply of fertilizer to expanding our ability to manufacture and export critical products here at home, this project strengthens industries that matter to our economy and our national security. This is Louisiana doing what we do best: putting our resources, workers and industrial expertise to work for America.”
Chief Executive Officer, JERA Senior Managing Executive Officer, Chief Operating Officer of Low Carbon Fuels Business Irtiza Sayyed from JERA Global Energy Solutions, says that “Today’s groundbreaking marks an important milestone for Blue Point One and brings us one step closer to establishing a reliable low-carbon ammonia value chain. At JERA, we believe that energy transition must be supported by practical projects and strong partnerships across the value chain. Blue Point One reflects this belief, bringing together partners with a shared commitment to build the foundation needed to scale lower-carbon ammonia for the future.”
Kenichi Hori who is the President and Chief Executive Officer, Mitsui & Co., Ltd. opines that “We are delighted to celebrate the groundbreaking of Blue Point One and sincerely thank our partners, the State of Louisiana, the local community, and all stakeholders whose support has made this milestone possible. Building on Mitsui’s long-term commitment to Louisiana, this project further strengthens the enduring partnership between the United States and Japan and advances a low-carbon ammonia value chain that contributes to supply chain resilience in the U.S., Japan, and beyond. We look forward to working closely with our partners to deliver this project safely and successfully, while contributing to the long-term prosperity of the region and its communities.”
As per Clint Cointment, the President of Ascension Parish, “CF Industries has long been more than an industry partner in Ascension Parish. They consistently step up to support our schools, parks, and community initiatives, and the CF Blue Point project represents an even deeper investment in our people and our future. This groundbreaking is about far more than turning dirt. It is about creating good-paying jobs, strengthening our local economy, and positioning Ascension Parish at the forefront of the next generation of industry. Ascension Means Business and today is another powerful example of what that means.”
Leroy L. Sullivan, Donaldsonville Mayor says that “CF Industries has been a valued partner in our community for nearly 60 years. Their continued investment has created meaningful opportunities for families and businesses throughout Donaldsonville and now the Modeste community. The Blue Point One investment further demonstrates CF Industries’ long-standing commitment to our area, and we look forward to the jobs, economic growth, and lasting ripple effects this investment will generate for our communities and future generations.”