JERA Co., Inc. has announced its final investment decision for the Blue Point low-carbon ammonia production project in Ascension Parish, Louisiana, marking a major milestone in global efforts to accelerate the transition to cleaner fuels. The project, developed in partnership with CF Industries Holdings, Inc. and Mitsui & Co., Ltd., is set to become the largest ammonia production facility in the world, with a nameplate capacity of approximately 1.4 million tonnes annually.
Following the signing of a joint development agreement in April 2024, the partners have advanced their investment assessments, leading to this definitive commitment. The total investment in the project is expected to reach approximately USD 4 billion (around JPY 600 billion), with JERA taking a 35 percent stake. As part of its investment, JERA will also secure offtake rights, enabling the supply of low-carbon ammonia to markets across Europe, Asia, and other global regions.
The Blue Point facility will utilise natural gas as feedstock, integrating carbon capture and storage technology to capture, transport, and store CO₂ generated during production. Commercial operations are scheduled to commence in 2029.
Driving Forward Clean Energy Goals
Yukio Kani, JERA’s global CEO and chair, emphasised the strategic value of the partnership, stating: “Collaboration and partnership are at the heart of JERA’s strategy to achieve our business goals. While the U.S. remains the cornerstone market for JERA, this Blue Point project underscores our long-term commitment to expanding our presence with diversified and reliable energy projects. As we move forward, we will continue to accelerate the availability of fuel sources and develop their supply chains, driving meaningful progress toward a more stable and cleaner energy future.”
The Blue Point project forms a key part of JERA’s JERA Zero CO₂ Emissions 2050 initiative, which aims to fully decarbonise the company’s domestic and international operations. In addition to low-carbon fuels, JERA’s global strategy is built on a triad of clean energy solutions, including renewable energy and LNG.
Global Partnership to Build the Future of Energy
Tony Will, president and CEO of CF Industries, commented:
“CF Industries is proud to partner with global leaders JERA and Mitsui to build the leading low-carbon ammonia production facility in the world. Our joint venture represents tangible progress towards building a reliable and affordable low-carbon ammonia value chain to meet what we expect to be robust global demand for both traditional and new applications.”
Kenichi Hori, president and CEO of Mitsui & Co., Ltd., added:
“We are excited to announce the achievement of this significant milestone together with CF Industries and JERA. Mitsui will establish a low-carbon ammonia value chain worldwide by leveraging our presence in the US gas value chain—from natural gas to chemicals—and our proven track record in global ammonia trading. We aim to lower carbon emissions across various industries through investment in projects of this kind.”
With this final investment decision, JERA and its partners take a critical step toward building a commercially viable, low-carbon ammonia value chain—providing scalable solutions to decarbonise industrial processes and power generation, and strengthening global energy security for the decades ahead.
For more information visit www.jera.co.jp
