Massive firms partner on $4 billion facility that will produce key industrial material in US: 'A crucial building block'

An American manufacturing company has teamed up with Japan to build a low-carbon ammonia production facility, and the venture will bring hundreds of jobs to the Bayou State.

On April 8, CF Industries Holdings announced its new partnership with Japan's largest energy company, JERA, and global investment and trading company Mitsui & Co.

Each partner will pour funds into the $4 billion project in Louisiana based on its ownership percentage: 40% for CF Industries, 35% for JERA, and 25% for Mitsui.

According to Louisiana Economic Development, the partners' investment will create more than 100 direct permanent jobs with an average salary of over $100,000 and more than 300 indirect jobs as the state capitalizes on a growing global demand for low-carbon ammonia.

Ammonia is "a crucial building block for a variety of industrial processes" that is used to produce fertilizers and chemicals, among other things, as S&P Global explained. Ammonia is also gaining traction as an alternative shipping fuel.

Whereas traditional ammonia production relies on dirty fuels and accounts for up to 2% of heat-trapping emissions worldwide, ammonia can be considered "low carbon" if companies produce it with renewable energy or use other processes to reduce its associated pollution.

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When complete, Louisiana's low-carbon ammonia production facility will sequester around 2.5 million tons of carbon each year with the assistance of carbon capture, utilization, and sequestration company 1PointFive, an Occidental subsidiary, per the press release.

Ultimately, the investment demonstrates how clean energy developments in the U.S. — sparked in 2022 by the nation's largest investment in climate in its history, per Reuters — can pay dividends not only for the health of the planet but also for our communities.

"Louisiana is continuing to lead the world in innovative energy and manufacturing processes, and I am proud that we are creating even more new, high-paying jobs that will ensure Louisianans will not have to leave the state looking for work," Gov. Jeff Landry said in a statement, per Louisiana Economic Development.

"This is the kind of win we work toward every day — bringing meaningful, lasting opportunities to the areas that need them most," added Ascension Economic Development Corporation President and CEO Kate MacArthur. "It's a sign that our local economy is on the rise and that clean energy innovation is happening right here in our backyard."