Mitsui & Co. and CF Industries Holdings, Inc. announced the signing of a memorandum of understanding that will lead the companies’ cooperative exploration of blue ammonia development opportunities in the United States.

Blue ammonia is a term that refers to the process of producing ammonia (NH3) and removing its byproduct carbon dioxide (CO2) via carbon capture and sequestration (CCS). Demand for blue ammonia as a decarbonized energy source is predicted to increase dramatically, either for its hydrogen content or as a fuel in and of itself.

“As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “CF Industries and Mitsui share a belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully. We are pleased to collaborate with Mitsui and leverage the world class expertise of both companies to explore the development of blue ammonia capacity in the United States to meet this expected demand.”

Under the memorandum of understanding, CF Industries and Mitsui plan to execute various preliminary studies on the feasibility of blue ammonia production in the United States. Among the areas that the companies will study include establishing blue ammonia supply and supply chain infrastructure, CO2 transportation and storage, expected environmental impacts, and blue ammonia economics and marketing opportunities in Japan and in other countries.

Nedim Husomanovic

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