KEY TAKEAWAYS: Blue Point One broke ground Aug. 26 on a $3.7 billion low-carbon ammonia plant in Ascension Parish. The facility is expected to produce 1.4 million metric tons of ammonia annually beginning in 2029. The project is expected to create 3,900 construction jobs and more than 100 perm anent manufacturing jobs. The plant is designed to capture and permanently sequester 98% of the carbon dioxide generated during production.   A joint venture led by CF Industries has broken ground on a $3.7 billion low-carbon ammonia plant in Ascension Parish that is expected to create thousands of construction jobs and become the world’s largest ammonia production facility when completed. Blue Point One, a partnership among CF Industries Holdings Inc., Japan-based JERA Co. and Mitsui Co. Ltd., began construction Aug. 26 in Modeste, Louisiana. The plant is expected to begin production in 2029 with annual capacity of 1.4 million metric tons of ammonia. The project is expected to create more than 100 permanent manufacturing jobs and an estimated 3,900 construction jobs over four years, according to the companies. CF Industries owns 40% of the joint venture, while JERA owns 35% and Mitsui owns 25%. The partners’ contributions toward the $3.7 billion investment will be allocated according to their ownership stakes. CF Industries also plans to invest another $550 million over four years in shared infrastructure at its Blue Point Complex, where the plant is being built. The infrastructure is designed to support the new facility as well as potential future ammonia production and fertilizer upgrades. Linde plans to invest more than $400 million in an on-site air-separation unit that will provide oxygen and nitrogen for the ammonia facility. Blue Point One is being developed to supply ammonia for traditional agricultural uses, including fertilizer production, while also targeting growing demand for ammonia in energy applications and international markets. The companies said the facility will be among the first ammonia plants to use autothermal reforming technology, which produces hydrogen that can be combined with nitrogen during ammonia production. Blue Point One is designed to capture and permanently sequester 98% of the carbon dioxide generated during production, according to the joint venture. A partnership between Occidental subsidiary 1PointFive and Enbridge Inc. will transport and permanently store the captured carbon dioxide. The companies said the technology is expected to give the plant a substantially lower carbon footprint than conventional large-scale ammonia production. “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,” CF Industries President and CEO Chris Bohn said. “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.” The groundbreaking drew federal, state and local officials, including U.S. Agriculture Secretary Brooke Rollins, Deputy Agriculture Secretary Stephen Vaden, Assistant Secretary of the Army for Civil Works Adam Telle and U.S. Rep. Julia Letlow. Louisiana Economic Development Secretary Susan Bourgeois said the investment builds on the state’s longstanding role in agriculture, manufacturing and energy production. “Louisiana has always been a state that produces what America and the world depend on, and Blue Point One builds directly on that legacy,” Bourgeois said. “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.” The project also expands CF Industries’ presence in Ascension Parish. The company’s nearby Donaldsonville Complex is a major nitrogen fertilizer production facility, and local officials said the new investment is expected to generate additional economic activity for surrounding communities. “This groundbreaking is about far more than turning dirt,” Ascension Parish President Clint Cointment said. “It is about creating good-paying jobs, strengthening our local economy, and positioning Ascension Parish at the forefront of the next generation of industry.” The Blue Point Complex includes additional space for future expansion, potentially allowing CF Industries and its partners to add ammonia production or related facilities. JERA, established in 2015, is Japan’s largest power generation company and one of the world’s major buyers of liquefied natural gas. Mitsui is a global investment and trading company operating across more than 60 countries. CF Industries operates ammonia and nitrogen manufacturing facilities in the United States, Canada and the United Kingdom. The company has been investing in lower-carbon ammonia production as it seeks to serve both its traditional fertilizer markets and emerging demand for hydrogen and ammonia as lower-carbon energy sources. ...read more read less