US-based CF will own 40%, Jera 35%, and Mitsui 25%. CF will operate and maintain the plant in Ascension Parish, while all three will have a stake in offtaking the blue ammonia product.

The greenfield autothermal reforming (ATR) ammonia plant with an equipped carbon capture unit is estimated to cost $4bn, with the three partners funding the development based on their ownership percentage of the JV.

CF says it will invest around $550m – separate from the $4bn plant cost – to build and operate “scalable infrastructure” at the Blue Point site for ammonia storage and loading.

The plant is expected to begin operating in 2029, with up to 95% of CO2 emissions generated by the plant expected to be captured – some 2.3 million tonnes of CO2.

Carbon capture, utilisation and sequestration (CCUS) firm 1PointFive will transport and store the plant’s CO2 output to its Pelican Sequestration Hub in Louisiana.

The companies estimate that around 50% of the project’s cost will be related to materials “imported to the US” – opening the development up to rising costs due to the unfolding trade war.

But the development is likely to benefit from the US Inflation Reduction Act’s (IRA) 45Q CO2 sequestration tax credit.

“Our JV represents tangible progress towards building a reliable and affordable low-carbon ammonia value chain to meet what we expect to be robust global demand for low-carbon ammonia,” said CF President and CEO, Tony Will.

Technip Energies has already been awarded an engineering, procurement and modules fabrication contract. Topsoe has also been awarded a process license for its low-carbon ammonia plant technology.