CF Industries Holdings, Inc. (NYSE: CF), a global leader in hydrogen and nitrogen products and the largest producer of ammonia worldwide, has partnered with POET LLC, the largest biofuel producer globally and a leader in sustainable bioproducts. Together, they announced a collaboration to pilot low-carbon ammonia fertilizer aimed at reducing the carbon intensity of corn production and ethanol.
The initiative responds to growing demand for ethanol with lower carbon intensity to meet stringent low-carbon fuel standards. While ammonia is widely used as a fertilizer in U.S. corn production, its conventional production process is emissions-intensive, contributing significantly to the lifecycle carbon intensity of both corn and ethanol production. By adopting low-carbon ammonia, ethanol’s carbon intensity can be reduced by up to 10%. The companies plan to commence initial applications of low-carbon ammonia in fall 2024, followed by broader implementation in spring 2025, targeting the first harvest in fall 2025.
Bert Frost, Executive Vice President of Sales, Supply Chain, and Market Development at CF Industries, expressed enthusiasm about the collaboration: “We are pleased to partner with POET to advance a low-carbon ethanol value chain that integrates low-carbon fertilizers from farmers to ethanol production. Fertilizers with lower carbon intensity offer a tangible way to decarbonize bioethanol inputs, benefiting ethanol producers and corn growers alike.”
Christian McIlvain, President of POET Grain, highlighted the initiative’s educational component for corn producers: “At POET, we are committed to delivering added value to our producers. This collaboration not only introduces a low-carbon ammonia option but also educates producers on their farm’s carbon footprint and its implications for grain value.”
The companies aim to develop a robust supply chain for low-carbon fertilizers, ensuring traceability, validation, and certification of carbon intensity reductions from CF Industries’ low-carbon ammonia production at the Donaldsonville Complex in Louisiana to ethanol production at POET’s facilities across multiple states. This includes collaborating with fertilizer retailers serving farms supplying corn to POET’s bioprocessing plants and exploring monetization opportunities for farmers adopting low-carbon fertilizer.
For the initial project phases in 2024 and 2025, CF Industries will utilize green ammonia from its Donaldsonville Complex. Green ammonia is produced using hydrogen sourced from an electrolysis-based process that emits no carbon dioxide, making it environmentally friendly while maintaining commodity ammonia properties. CF Industries has installed a 20MW electrolyzer at the Donaldsonville Complex and plans to begin green ammonia production soon, supported by renewable energy certificates. Additionally, CF Industries anticipates further scaling of low-carbon ammonia production from 2025 through a large-scale carbon capture and sequestration project at the Donaldsonville Complex.
