Construction begins on Louisiana clean ammonia plant

(The Center Square) – U.S. fertilizer producer CF Industries and a pair of Japanese industrial conglomerates began construction Wednesday on a low-carbon ammonia plant in Modeste, Louisiana, which could provide domestic supplies of fertilizer for American farmers and power electric grids in Asia.

The Blue Point complex, near Donaldsonville in Ascension Parish, is designed to produce 1.4 million tons of ammonia annually, potentially making it the largest plant of its kind in the world. The facility is engineered to permanently sequester 98% of total CO₂ emissions underground.

Ammonia, used primarily as a component in nitrogen fertilizer, is emerging as a clean-burning fuel for heavy industry and power generation. Japanese partners JERA and Mitsui & Co. will ship their share of Blue Point’s ammonia production overseas to displace coal and lower emissions in Asian power plants.

The ammonia produced at Blue Point will be allocated according to ownership levels, with CF Industries set to receive 40% and JERA 35%, while Mitsui has a 25% ownership stake. Beyond the core $3.7 billion joint investment at the Bluepoint complex, CF Industries plans to independently spend another $550 million over four years to further increase in fertilizer production.

The groundbreaking ceremony was attended by U.S. Secretary of Agriculture Brooke Rollins, U.S. Deputy Secretary of Agriculture Stephen Vaden, Assistant Secretary of the Army (Civil Works) Adam Telle, U.S. Representative Julia Letlow, and state government and local officials in Louisiana.

“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,” said CF Industries President and Chief Executive Officer Chris Bohn. “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.”

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Irtiza Sayyed, CEO of JERA Global Energy Solutions, said the energy transition must be supported by “practical projects” and strong partnerships across the value chain. “Today’s groundbreaking marks an important milestone for Blue Point One and brings us one step closer to establishing a reliable low-carbon ammonia value chain,” Sayyed said.

Japan’s Ministry of Economy, Trade and Industry certified JERA and Mitsui for subsidies that offset differences in the costs of conventional fossil fuels and low-carbon alternatives as part of hydrogen price-gap subsidy program. JERA plans to blend the ammonia with coal at its Hekinan Thermal Power Station, while Mitsui has secured supply agreements with regional utilities and manufacturers, including Hokkaido Electric Power and Tosoh Corporation.

Mitsui & Co. President and Chief Executive Officer Kenichi Hori said the project “advances a low-carbon ammonia value chain that contributes to supply chain resilience in the U.S., Japan, and beyond.”

In June, Air Products cancelled its Louisiana Clean Energy Complex, a project also planned in Ascension Parish, after determining that the projected financial returns failed to meet the company’s investment criteria. Woodside Energy in August announced that it was delaying a planned investment in ammonia facility in Beaumont, Texas, citing changes in the market for lower-carbon ammonia and a changing policy environment.

A joint venture between Occidental subsidiary 1PointFive and Enbridge will transport and permanently sequester the carbon dioxide captured at the Blue Point Complex, according to the project developers.

The Blue Point project is expected to generate approximately 3,900 construction jobs over a four-year period and 100 permanent manufacturing positions, with first production anticipated in 2029.