CF Industries, JERA, a 50-50 joint venture between TEPCO Fuel & Power, a wholly owned subsidiary of Tokyo Electric Power Company, and Chubu Electric Power, and Mitsui have reached a final investment decision on a $4 billion low-carbon ammonia production facility in Louisiana’s Ascension Parish. Called “Blue Point,” the project will create the world’s largest ammonia production facility with a nameplate capacity of 1.4 million tons annually when it begins operations in 2029.
The venture will use natural gas as feedstock and implement carbon capture and sequestration (CCS) technology to prevent over 95% of emissions from escaping into the atmosphere. Occidental Petroleum’s 1PointFive will transport and sequester approximately 2.3 million metric tons of CO2 annually at its Pelican Sequestration Hub under a 25-year agreement.
Under the joint venture structure, CF Industries will hold 40% ownership, JERA 35%, and Mitsui 25%. Each company will handle product offtake according to their ownership percentage. JERA plans to sell 490,000 tonnes primarily to its Hekinan Thermal Power Station in central Japan, where it aims to co-fire coal with 20% ammonia by 2030.
Yukio Kani, JERA Global CEO and Chair, emphasized that collaboration is central to the company’s strategy. “While the U.S. remains the cornerstone market for JERA, this Blue Point project underscores our long-term commitment to expanding our presence with diversified and reliable energy projects,” he noted.
CF Industries will be responsible for the operation and maintenance of the ammonia production facility and will invest approximately $550 million in infrastructure at the Blue Point site to supply services including product storage and loading.
The project is expected to create 103 direct new permanent jobs with an average salary of $110,000 plus 311 indirect new jobs in Louisiana’s Capital Region.
