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CF Industries Announces Commitment to Clean Energy Economy

By October 31, 2020 4   min read  (708 words)

October 31, 2020 |

CF Industries Announces Commitment to Clean Energy Economy
  • Low-carbon ammonia key enabler for clean hydrogen energy
  • World’s largest producer of ammonia decarbonizing global production base
  • Board approves green ammonia project at Donaldsonville Nitrogen Complex
  • Comprehensive ESG goals including net-zero carbon emissions by 2050

DEERFIELD, Ill.–CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced significant steps to support a global hydrogen and clean fuel economy, which is expected to grow significantly over the next decade, through the production of green and low-carbon ammonia.

Highlights:

  • Board-authorized green ammonia project to be built at the Donaldsonville Nitrogen Complex
  • Carbon dioxide (CO2) sequestration and other carbon abatement projects to enable low-carbon ammonia production in development
  • Announces comprehensive ESG goals, covering critical environmental, societal, and workforce imperatives, including a dramatic reduction in carbon emissions across its global network
  • 25% reduction in CO2e emissions intensity by 2030 and net-zero carbon emissions by 2050
  • Executive compensation tied directly to ESG goals
  • Briefing call to outline clean energy commitment at 4:00 pm Eastern today, Thursday, Oct. 29, 2020

“The world needs clean energy and hydrogen is a key to meeting this need. Low-carbon ammonia is the critical enabler for storage and transport of hydrogen and thus has a major role to play,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Today’s commitment to decarbonize the world’s largest ammonia production network positions CF Industries at the forefront of clean hydrogen supply. Due to our unparalleled manufacturing and distribution network, our competitive advantage in producing low-carbon ammonia at scale is measured in terms of years and billions of dollars.”

Significant Long-term Global Growth

Green hydrogen and ammonia are expected to be critical contributors to the world achieving net-zero carbon emissions by 2050. Industry experts project hydrogen will meet approximately 20% of the world’s energy need by 2050, up from less than 1% today. Ammonia, which is composed of three-parts hydrogen and one-part nitrogen, is a highly efficient transport and storage mechanism for hydrogen as well as a fuel in its own right.

As the world’s largest ammonia producer, CF Industries’ current asset base and technical expertise are well-situated to meet the anticipated demand for hydrogen and ammonia from green and low-carbon sources. The company’s approach will focus on green ammonia production, which refers to ammonia produced through a carbon-free process, and low-carbon ammonia, which relates to ammonia produced by conventional processes but with CO2 removed through carbon capture and sequestration (CCS) and other certified carbon abatement projects.

“Our existing scale and commitment to produce green and low-carbon ammonia establishes CF Industries as the clear leader in providing clean fuels for a sustainable world, while also providing a growth platform to drive long-term shareholder value,” added Will.

Initial Investments in a Clean Energy Future

CF Industries’ Board of Directors approved an initial green ammonia project at the company’s flagship Donaldsonville Nitrogen Complex to produce approximately 20,000 tons per year of green ammonia. The company will install a state-of-the-art electrolysis system at Donaldsonville to generate carbon-free hydrogen from water that will then be supplied to an existing plant to produce green ammonia. The cost of the initial project is expected to fit within the company’s annual capital expenditure budget, which has ranged from $400-$450 million per year.

Additionally, the company is developing CCS and other carbon abatement projects across its production facilities. The implementation of these projects will enable CF to produce low-carbon ammonia. The company estimates that over time it could produce approximately 3.5 million tons of low-carbon ammonia per year, which represents about one-third of its annual ammonia production capacity, without affecting its current product mix.

In order to execute these initiatives, CF is collaborating with leading technology companies, and has signed Memorandums of Understanding with ThyssenKrupp and Haldor Topsoe. The Company is also in discussions with global utilities and maritime transportation providers that have announced their intention to use low-carbon ammonia directly as a fuel.

New Committee of the Board

The CF Board of Directors has established a new committee, the Environmental Sustainability and Community Committee, to oversee all aspects of the progress toward net-zero carbon emissions and the company’s active involvement in the communities in which it operates.

To learn more about CF Industries’ commitment to a clean energy future, visit www.cfindustries.com.

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