CF Industries forms alliance with POSCO Holdings to set up an Ammonia Facility at Louisiana
CF Industries and POSCO Holdings are contemplating a joint enterprise to establish a low-carbon clean ammonia facility at the Blue Point Complex in Ascension Parish, Louisiana. This initiative will involve the integration of autothermal reforming (ATR) technology in ammonia production. By pairing ATR with carbon capture and sequestration (CCS), it is anticipated that the CO2 emissions from the ammonia production process can be curtailed by over 90%.
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The preliminary design and engineering aspects related to ATR technology will be managed through a front-end engineering and design (FEED) study, which is projected to wrap up in the latter half of 2024. A conclusive investment decision is expected thereafter.
Furthermore, the collaboration will explore the feasibility of transporting the manufactured product to South Korea. This is aimed at aiding the decarbonization efforts of POSCO's own coal-dependent power generation setups as well as those of third parties. POSCO's broader vision includes converting this low-carbon ammonia into hydrogen for utilization in its gas-driven power plants and in the steel production cycle.
Tony Will, the CEO of CF Industries, emphasized that POSCO's initiative to leverage low-carbon ammonia to hasten the decarbonization of steel production and power generation in South Korea paves the way for fresh demand avenues for low-carbon ammonia as an eco-friendly energy alternative. Annually, CF Industries has a production capacity ranging from 9.5 to 10 million tonnes of ammonia across its facilities.
Yoo Byeong-ok from POSCO pinpointed the US as a pivotal strategic region for the POSCO Group, especially in light of their active pursuit of a cost-effective and dependable international network for hydrogen and ammonia procurement, facilitated by the IRA support policy. He further elaborated on plans to synergize with CF Industries to set up a central hub for clean ammonia production in the US. This strategic move is aimed at ensuring a consistent supply chain to efficiently cater to the domestic requirements of power generation and hydrogen reduction steelmaking.
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According to the article by Procurement Resource, CF Industries and POSCO Holdings are partnering to create a low-carbon ammonia plant at Louisiana's Blue Point Complex. They aim to employ autothermal reforming (ATR) technology combined with carbon capture to significantly reduce CO2 emissions during ammonia production. An engineering study will conclude in 2024, post which an investment decision will be made. The collaboration may also facilitate ammonia exports to South Korea for POSCO's decarbonization goals. This partnership strengthens POSCO's vision of establishing a reliable ammonia supply network in the US.
