Ammonia and fertilizer producer CF Industries will collaborate with independent renewable developer NextEra Energy Resources on a hydrogen project at CF’s complex in Oklahoma.
The project involves a jointly owned 100-MW electrolysis plant at the Verdigris Complex that will be powered by a dedicated 450-MW renewable energy facility developed by NextEra Energy Resources. CF Industries is a Deerfield, Illinois-based manufacturer and distributor of agricultural fertilizers, including ammonia, urea and ammonium nitrate products.NextEra Energy Resources is a renewable energy firm based in Juno Beach, Florida, and part of NextEra Energy, which also owns utility Florida Power & Light.
CF Industries will be the sole purchaser of the 100-percent zero-carbon green hydrogen output from the electrolyzers at the site. The green hydrogen will be utilized to produce up to 100,000 tons of zero-carbon green ammonia per year by debottlenecking ammonia plants at Verdigris.
CF Industries anticipates that the production of green ammonia will aid in the shift towards low- and zero-carbon fertilizers in American agriculture, thereby reducing up to 130,000 metric tons of CO2 emissions annually from the agriculture supply chain.
“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 CEO of CF Industries Holdings. “We are pleased to work with NextEra Energy Resources to explore how best 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.”
The proposed initiative, part of a memorandum of understanding reached earlier, was included in a funding application submitted to the US Department of Energy (DOE) this month by the HALO Hydrogen Hub, a collaborative effort between Arkansas, Louisiana and Oklahoma, to compete for funding from the DOE’s regional clean hydrogen hub program.
According to the two companies, support from the DOE program will be a crucial factor in evaluating the project. However, a final investment decision for the project has not been made yet.