CF Industries Holdings Inc. (CF Industries), the world’s largest producer of ammonia, and NextEra Energy Resources LLC (NEER), the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage, announced a memorandum of understanding (MoU) for a joint venture to develop a zero-carbon-intensity hydrogen project at CF Industries’ Verdigris Complex in Oklahoma. The proposed project was included in the funding application submitted to the US Department of Energy (DOE) this month by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana, and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program. CF Industries and NEER anticipate that support for the project from the DOE program will be a key aspect of their evaluation process. A final investment decision has not been made for this project.
The proposed project envisions a jointly owned 100-MW electrolysis plant at the Verdigris Complex that would be powered by a dedicated 450-MW renewable energy facility developed by NEER. CF Industries would be the sole offtaker of 100% of the zero-carbon green hydrogen output from the site’s electrolyzers. The green hydrogen would be used to produce up to 100,000 tons (90,718 tonnes) per year of zero-carbon green ammonia, which would be facilitated by debottlenecking Verdigris’ ammonia plants. CF Industries expects the resulting green ammonia production to support the transition of American agriculture to low- and zero-carbon fertilizers, helping to remove up to 143,300 (130,000 tonnes) of carbon dioxide emissions from the agriculture supply chain each year.
“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable, and verifiable way to reduce the lifecycle carbon footprint of the food we eat,” said Tony Will, president and chief executive officer of CF Industries. “We are pleased to work with NEER to explore how green hydrogen could help accelerate the adoption of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the United States and contribute to decarbonizing the agriculture supply chain.”
“NEER is committed to leading the decarbonization of the American economy, and the agriculture industry is fundamental to that goal,” said Rebecca Kujawa, president and chief executive officer of NEER. “We are honored to work with CF Industries to bring green hydrogen production to its Verdigris Complex while also creating additional jobs and economic benefits for the state of Oklahoma.”
