From Fertilizer to Fuel: Louisiana’s Clean Ammonia Leap

CF Industries joins Japan’s JERA and Mitsui to build a $4B low-carbon ammonia hub in Louisiana

9 Apr 2025

A new $4 billion ammonia plant on Louisiana’s Gulf Coast could reshape how the world makes and uses one of its most essential chemicals. CF Industries is teaming up with Japanese energy giants JERA and Mitsui to build a low-carbon facility in Ascension Parish that promises to capture nearly all its carbon emissions.

For decades, ammonia production has been synonymous with heavy pollution, largely because of its reliance on natural gas. This project aims to flip that script. By integrating carbon capture and storage at the source, the partners say the plant will slash emissions by over 95 percent and turn a long-standing environmental problem into a model for clean industrial manufacturing.

The project is set to break ground soon and begin full operations in 2029. Its location is no accident. With export terminals nearby and generous U.S. tax credits under the Inflation Reduction Act, Louisiana offers both logistical and financial advantages. Much of the output will likely head to Japan and other Asian markets, where clean ammonia is emerging as a vital part of plans to decarbonize power and heavy industry.

“This isn’t just a plant; it’s a launchpad for a new era of clean solutions,” a CF Industries spokesperson said.

Analysts see the partnership as a sign that ammonia, long valued for fertilizer, is evolving into a global energy carrier. Yet questions remain: Can the project attract long-term buyers and stay cost-competitive as new entrants race in?

If it succeeds, the Louisiana hub could redefine what’s possible in heavy industry. A sector once seen as too tough to clean up may soon become a cornerstone of the low-carbon economy.