CF Industries Holdings, Inc., the world’s largest producer of ammonia and its partners have announced an approximately $4 billion final investment decision to establish a low-carbon ammonia facility.
Upon completion, this new facility on the West Bank of Ascension Parish will be the largest facility of its kind in the world.
The investment is a joint venture with JERA Co., Inc., Japan’s largest energy company, and Mitsui & Co., Inc., a leading global investment company. The project is expected to create 103 direct new permanent jobs with an average salary of $110,000. Louisiana Economic Development (LED) estimates the project will result in 311 indirect new jobs, for a total of 414 potential new jobs in the Capital Region.
“This project demonstrates that Louisiana is continuing to lead the world in innovative energy and manufacturing processes, and I am proud that we are creating even more new, high-paying jobs that will ensure Louisianans will not have to leave the state looking for work,” Governor Jeff Landry said. “This project moves us even closer to announcing $50 billion in projects since I took office by the end of this summer, continuing a historic run of investments that are changing the narrative about Louisiana as an outstanding place to do business.”
The facility is expected to export approximately 1.4 million metric tons of low-carbon ammonia annually to international markets, playing a significant role in the global energy market. The facility will utilize cutting-edge carbon reduction and carbon capture and sequestration technology, with carbon sequestered by 1PointFive, a subsidiary of Occidental.
“CF Industries and our partners are proud to bring the world’s most advanced low-carbon ammonia production facility to Louisiana and the West Bank of Ascension Parish,” said CF Industries Holdings, Inc. President and CEO Tony Will. “Our project will be uniquely advantaged to meet global customer demand for low-carbon ammonia thanks to Louisiana’s skilled workforce, strong business environment, ample natural resources, and access to carbon capture and sequestration. We appreciate the support from Governor Landry and his team, as well as from Ascension Parish and local leaders, that enabled this industry-leading project to become a reality.”
For more than 50 years, CF Industries has invested in Louisiana. The company’s existing Donaldsonville Complex on 1,400 acres on Highway 3089 is currently the world’s largest and most flexible ammonia and nitrogen production facility and has more than 500 employees.
The $4 billion project is the final investment decision for CF Industries’ 2022 announcement that it was evaluating the site in Ascension Parish for the world-scale facility.
“Louisiana is experiencing an unprecedented wave of momentum that is fostering innovation, creating opportunities and putting our state on the global stage,” said LED Secretary Susan B. Bourgeois. “When forward-thinking manufacturing leaders like CF Industries make investments in new energy technology, the world sits up and takes notice. We thank CF Industries for choosing to expand its footprint in Louisiana, and we look forward to many more years of partnership ahead that will drive industry advancements and impact.”
The new production facility will be located at the RiverPlex MegaPark on the West Bank in Ascension Parish, the same industrial park where Hyundai Steel Company will establish its nearly $6 billion clean steel manufacturing facility.
“Entergy Louisiana is proud to power this transformative project, bringing one of the world’s first low-carbon ammonia production facilities to life in Louisiana,” said Entergy Louisiana President and CEO Phillip May. “Our collaboration underscores the critical role strong partnerships play in advancing global energy technology while creating meaningful economic opportunities here at home. Together, we’re not only fueling innovation, we’re building a more sustainable future for our communities and our customers.”
“CF Industries has been an incredible community ally and their continued investment in Ascension is a testament to their commitment to our shared future,” said Ascension Parish President Clint Cointment.
To win the project, LED offered CF Industries a competitive incentives package that includes the comprehensive workforce development solutions of LED FastStart and a $6 million performance-based grant for project development and infrastructure expenditures. The company is also participating in the state’s Industrial Tax Exemption Program and is expected to utilize the Quality Jobs program.
“This is the kind of win we work toward every day — bringing meaningful, lasting opportunities to the areas that need them most,” said Ascension Economic Development Corporation President and CEO Kate MacArthur. “It’s a sign that our local economy is on the rise and that clean energy innovation is happening right here in our backyard.”
“This project’s progression from feasibility to full realization is a significant win for our region,” said Baton Rouge Area Chamber President and CEO Lori Melancon. “We are committed to supporting CF Industries’ growth in the Baton Rouge area and anticipate significant economic benefits from the continued development of the RiverPlex MegaPark.”
