Over the next 50 years global population will increase by 30% to 9 Billion people, food production will need to double to feed an increasingly hungry world and the demands placed on farmers and growers will be unprecedented.
All told CF Fertilisers has reduced the carbon footprint of Nitram production by 40% since 2010.
The international standard figure is 6.6kg Carbon dioxide emitted for every 1.0kg of Nitrogen produced. With CF ammonium nitrate (Nitram) it is almost half this at 3.4kg for every 1.0kg of N.
Our company’s commitment to the clean energy economy – an exciting new strategic focus that we believe will provide a growth platform for the company in the years ahead.
Our commitment includes a set of significant steps to support a global hydrogen and clean fuel economy by producing green and low-carbon ammonia. It also involves establishing comprehensive environmental, social and governance (ESG) goals, including a 25% reduction in CO2e emissions intensity by 2030 and net-zero carbon emissions by 2050.
We are taking these actions because the world needs clean energy, and hydrogen is a key to meeting this need. Low-carbon ammonia is the critical enabler for storage and transport of hydrogen and is an efficient clean fuel in its own right, and thus has a major role to play in the development of this part of the clean energy economy. As the world’s largest producer of ammonia, we are uniquely situated to meet the opportunity we see ahead: significantly growing demand over the next decade and a substantial market value premium for hydrogen contained in green and low-carbon ammonia.
Over the coming years, we will decarbonize our ammonia production network, positioning our company at the forefront of clean hydrogen supply. We have launched this effort in a number of ways:
- The Board of Directors has approved a green ammonia project at the Donaldsonville Nitrogen Complex, where we expect to produce approximately 20,000 tons per year of green ammonia. It will feature a state-of-the-art electrolysis system to generate carbon-free hydrogen from water that will then be supplied to an existing plant to produce green ammonia.
- The company is developing carbon capture and storage and other carbon abatement projects across our production facilities. The implementation of these projects will enable CF to produce low-carbon ammonia. We estimate that over time we could produce approximately 3.5 million tons of low-carbon ammonia per year, which represents about one-third of our annual ammonia production capacity, without affecting our current product mix.
- We are collaborating with leading technology companies and have signed Memorandums of Understanding with ThyssenKrupp and Haldor Topsoe to support the execution of these initiatives.
- We are also in discussions with global utilities and maritime transportation providers that have announced their intention to use low-carbon ammonia directly as a fuel.
These are just the first steps we will take as part of our commitment to the clean energy economy, with more to come in the months and years ahead. While others will see this opportunity as well, our unparalleled manufacturing and distribution network creates competitive advantages in producing low-carbon ammonia at scale that is measured in terms of years.