CF Industries partners with POSCO for U.S. clean ammonia venture

CF Industries Holdings, Inc., globally recognised as the leading producer of ammonia, and POSCO Holdings Inc., South Korea’s premier steelmaker and energy trading powerhouse, have disclosed their intentions to explore a collaborative venture. This potential partnership aims to establish a low-carbon clean ammonia production facility at CF Industries’ Blue Point Complex in Ascension Parish, Louisiana, U.S.A. Additionally, there’s a prospective long-term agreement for supplying low-carbon clean ammonia to South Korea.

The collaboration will involve a comprehensive study on autothermal reforming (ATR) ammonia production technology by both companies. When integrated with carbon capture and sequestration (CCS), ATR technology is anticipated to curtail carbon dioxide emissions from the ammonia production process by more than 90%. This significant reduction will align with the Clean Hydrogen Energy Portfolio Standard set by the South Korean government.

If the project gains traction, POSCO envisions importing low-carbon clean ammonia from the Louisiana facility to South Korea. This import will aid in the decarbonisation of both POSCO’s and third-party coal-powered generation plants. Furthermore, POSCO plans to transform this low-carbon clean ammonia into hydrogen, which will be utilised in gas-based power plants and the steel production process.

Tony Will, president and chief executive officer of CF Industries Holdings, Inc., expressed his enthusiasm about the collaboration. He emphasised the potential of low-carbon ammonia in expediting decarbonisation in sectors like steel manufacturing and power generation in South Korea.

Yoo Byeong-ok, chief officer for Green Materials & Energy Business at POSCO Holdings, highlighted the strategic importance of the United States in POSCO Group’s vision. He underscored the group’s ambition to establish a robust production hub for clean ammonia in the U.S., in alliance with CF Industries.

The front-end engineering and design (FEED) study is slated for completion by the latter half of 2024. Subsequent investment decisions by both CF Industries and POSCO will follow this study.