Representatives from JERA, Mitsui, and CF Industries sign a partnership agreement to jointly develop low-carbon ammonia. (Photo: JERA)
Japanese energy company JERA, trading house Mitsui & Co., and U.S.-based fertilizer giant CF Industries are teaming up to build one of the world’s largest blue ammonia plants in Louisiana. The facility is projected to have an annual production capacity of 1.4 million tons.
Low-carbon ammonia set to supply Japan, Europe, Asia
The plant will use natural gas to produce ammonia and apply CCS technology to capture and store CO₂, preventing it from entering the atmosphere, said JERA. Occidental subsidiary 1PointFive will handle the capture, transport, and storage of the CO₂, according to Reuters.
Construction is scheduled to begin this year, with operations starting in 2029. The total investment is expected to reach $4 billion. A joint venture formed by the three companies will operate the plant, with CF Industries holding the largest stake. JERA and Mitsui will hold 35% and 25%, respectively, and production will be shared proportionally.
Despite inflation and tariff uncertainties in the U.S. market, expectations remain high for the role of low-carbon ammonia in the energy transition. Yuichiro Kato, head of JERA’s low-carbon fuel value chain division, said that President Trump’s support for fossil fuels could help maintain tax incentives for CCS. Japan, Asia, and Europe are expected to be the main export markets for the plant’s output.
Fertilizer giant CF Industries' CCS facility in the United States. (Image: CF Industries)
JERA scales up low-carbon fuel strategy to decarbonize thermal power
JERA aims to achieve net-zero emissions by 2050, focusing on decarbonizing thermal power, expanding renewable energy, and increasing its liquefied natural gas (LNG) portfolio. It plans to ramp up its low-carbon hydrogen and ammonia capacity to 7 million tons per year by 2035. Starting in 2028, the company also intends to source low-carbon ammonia from ExxonMobil.
Because ammonia can be burned without emitting CO₂, it is seen as a viable alternative fuel for power plants and ships. JERA is therefore expanding its low-carbon ammonia capabilities to reduce emissions from its coal-fired power plants, which collectively have the largest installed capacity in Japan—over 10 GW.
In addition to switching fuels, JERA plans to shut down select plants during the low-demand spring and fall seasons starting in 2026. This approach will both reduce emissions and cut costs in response to the return of nuclear energy to Japan’s grid.
According to BloombergNEF, global supply of low-carbon ammonia is expected to grow 22 to 30 times over the next decade, reaching 32 million tons annually by 2030. North America, China, and the Middle East will lead production, with the U.S. expected to account for one-third of the global total, positioning itself as a dominant player in the sector.
Source: JERA、Nikkei Asia(1)、(2)、Reuters
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