Clean Ammonia Supply : CF Industries and JERA Team Up
Here’s an article posted in Business Wire that talks about the collaboration of CF industries and JERA for clean Ammonia supply.
According to the article,
- CF Industries and JERA sign MOU for clean ammonia supply
- Up to 500,000 metric tonnes per year
- Joint study on sales and purchase, co-firing operations
- Hekinan Thermal Power Station targeted for 2027
- JERA to conduct international bidding for fuel ammonia
Let’s delve deeper into this development and its implications:
- Clean Ammonia Supply: CF Industries, the world’s largest producer of ammonia, has agreed to supply up to 500,000 metric tonnes per year of clean ammonia to JERA, Japan’s largest energy generator. This clean ammonia will be produced with at least 60% lower carbon emissions compared to conventionally produced ammonia.
- Ammonia Co-firing: JERA plans to co-fire the clean ammonia with coal at its Hekinan Thermal Power Station. This co-firing process aims to reduce carbon dioxide (CO2) emissions from the facility. Ammonia, when combusted, does not emit CO2, making it an attractive option for reducing greenhouse gas emissions.
- Pilot Tests and Demonstration Projects: Prior to this MOU, JERA conducted successful pilot tests on ammonia co-firing and is set to begin a demonstration project at its Hekinan power plant in fiscal year 2023. These tests and projects are crucial for validating the feasibility and effectiveness of clean ammonia as a fuel in power generation.
- Long-term Offtake Agreement: The MOU establishes a framework for a long-term offtake agreement between CF Industries and JERA. This agreement will ensure a stable supply of clean ammonia to JERA, supporting its transition towards cleaner energy generation.
- Supply Options: CF Industries and JERA will evaluate various supply options, including an equity investment in a greenfield clean ammonia facility in Louisiana. This investment highlights the commitment of both companies to scaling up clean ammonia production and meeting the growing demand for sustainable energy sources.
- Decarbonization Initiatives: CF Industries has been actively pursuing decarbonization initiatives since 2020. These initiatives include leveraging carbon capture and sequestration (CCS) technologies at its Donaldsonville Complex, which is expected to capture and sequester up to 2 million tons of CO2 per year starting in 2025. Additionally, the company is planning to construct a greenfield clean ammonia facility in Louisiana, further boosting clean ammonia production capacity.
- Global Impact: The collaboration between CF Industries and JERA reflects a broader trend towards decarbonizing the energy sector globally. As countries and companies strive to meet climate targets, clean ammonia could play a significant role in reducing greenhouse gas emissions from power generation and other industrial processes.
- Economic Opportunities: The transition to clean energy sources presents economic opportunities for companies involved in clean ammonia production and supply chains. With increasing demand for clean ammonia, there is potential for job creation, investment in infrastructure, and growth in related industries.
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