Green hydrogen project to decarbonize ag supply chain
25 April 2023
CF Industries Holdings, Inc. and NextEra Energy Resources, LLC, have signed a memorandum of understanding (MoU) for a joint venture to develop a zero carbon intensity hydrogen project at CF Industries’ Verdigris Complex in Oklahoma.
CF Industries is a major U.S.-based ammonia producer focused on developing green and blue hydrogen products for energy, fertilizer, emissions abatement and other industrial activities. It has manufacturing complexes in the United States, Canada and the UK. NextEra Energy Resources is a wholesale generator of electric power in the U.S., with approximately 27,400 MW of total net generating capacity in the U.S. and Canada.
The proposed project between the two companies would consist of a jointly owned 100 MW electrolysis plant at the Verdigris Complex that would be powered by a dedicated 450 MW renewable energy facility developed by NextEra Energy Resources. CF Industries would be the sole offtaker of 100% of the zero-carbon green hydrogen output from the site’s electrolyzers.
The green hydrogen produced at the facility would be used to produce up to 100,000 tons per year of zero-carbon green ammonia, which CF Industries expects to support the transition of U.S. agriculture to low- and zero-carbon fertilizers. The result, the company said, will be removal of up to 130,000 metric tons of carbon dioxide emissions from the agriculture supply chain each year.
“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable and verifiable way to reduce the life-cycle carbon footprint of the food we eat,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “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.”
Rebecca Kujawa, president and CEO, NextEra Energy Resources, said the company is committed to decarbonization of the U.S. economy, and that the agriculture industry is fundamental to that goal. “We are honored to work with CF Industries to bring green hydrogen production to its Verdigris Complex while also creating additional jobs and economic benefits for the state of Oklahoma,” she added.
The proposed project was included in the funding application submitted to the U.S. Department of Energy (DOE) in April 2023 by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program. CF Industries and NextEra Energy Resources anticipate that support for the project from the DOE program will be a key aspect of their evaluation process. A final investment decision has not yet been made for the project.