CF Industries Holdings, the world’s most prominent ammonia producer, and NextEra Energy Resources, the world’s largest renewable energy generator, have signed an MoU for a joint venture to create a net zero hydrogen project at CF Industries’ Verdigris Complex in Oklahoma.
The proposed project includes a 100 MW electrolysis plant powered by a dedicated 450 MW renewable energy facility developed by NextEra Energy Resources. CF Industries will be the sole off-taker of the green hydrogen output, which will be used to produce up to 100,000 tons per annum of zero-carbon green ammonia. As a result, CF Industries expects it to help diminish the carbon footprint of the food industry and agriculture supply chain by up to 130,000 metric tons of carbon dioxide emissions per year.
“Leveraging decarbonized ammonia in agriculture enables the most certain, quantifiable, and verifiable method to diminish the lifecycle carbon footprint of the food we consume,” said Tony Will, president, and CEO of CF Industries Holdings. “We are excited to collaborate with NextEra Energy Resources to investigate how best green hydrogen can assist in accelerating the usage of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the US, as well as contribute to decarbonizing the agriculture supply chain.”
The project was included in the funding application submitted to the US Department of Energy (DOE) by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana, and Oklahoma. CF Industries and NextEra Energy Resources expect that support from the DOE program will be a crucial aspect of their evaluation process. However, a final investment decision has not been made for this project.
“NextEra Energy Resources is devoted to leading the decarbonization of the American economy, and the agriculture industry is critical to that goal,” said Rebecca Kujawa, NextEra Energy Resources’ president and CEO. “We appreciate collaborating with CF Industries to introduce green hydrogen production to its Verdigris Complex while also developing additional jobs and economic benefits for Oklahoma.”
The partnership between CF Industries and NextEra Energy Resources is an exciting development in renewable energy and sustainable agriculture. The project has the potential to significantly reduce the carbon footprint of the agriculture industry while also creating jobs and economic benefits for the state of Oklahoma.
Image provided by CF Industries
