Midwest Pilot Links Fertilizer to Fuel Scores

CF Industries and POET test low carbon ammonia, tying farm inputs to ethanol carbon scores as fuel rules tighten

24 Feb 2026

A partnership between CF Industries and biofuel producer POET is testing whether lower carbon ammonia can strengthen the position of US ethanol in markets that reward cleaner fuels.

The companies have launched a pilot programme in the US Midwest focused on ammonia, a key input in nitrogen fertiliser. Working with WinField United and regional farm cooperatives, the initiative links ammonia production, on-farm application and ethanol processing into a single supply chain with shared carbon tracking.

Initial field applications began in autumn 2025. The pilot uses ammonia produced with lower emissions, including output supported by carbon capture and related technologies designed to reduce the carbon intensity of manufacturing. The partners are pairing these inputs with more detailed monitoring and verification systems intended to connect fertiliser use to the carbon profile of finished ethanol.

The effort comes as pressure grows on both fertiliser producers and ethanol plants to reduce emissions. California and other states operate low carbon fuel programmes that assign a carbon score to fuels and offer credits to those with lower intensity. Additional states are considering similar schemes.

By reducing emissions at the fertiliser stage, the companies aim to lower the overall carbon score of corn-based ethanol. Fertiliser production and use account for a significant share of ethanol’s lifecycle emissions, making upstream changes increasingly relevant for producers seeking access to premium fuel markets.

Nitrogen fertiliser manufacturing is energy intensive and typically relies on natural gas. Emissions also occur after application in the field. The pilot seeks to address both sources by supplying lower carbon ammonia and improving data systems that trace inputs from soil to refinery.

For the fertiliser sector, the programme signals a possible shift in competition. Carbon performance may become a differentiating factor alongside price and yield, particularly if verified lower carbon inputs allow ethanol producers to meet evolving regulatory standards.

The model faces practical hurdles. Measuring emissions across multiple stages is complex, farmers require clear financial incentives, and uncertainty over federal climate policy complicates long-term investment decisions.

Even so, companies across the agricultural chain are placing greater emphasis on transparent carbon accounting as fuel standards continue to develop.