CF Industries Holdings, Inc, a leading global manufacturer of hydrogen and nitrogen products and the world’s largest producer of ammonia, and POET LLC, the world’s largest producer of biofuel and a global leader in sustainable bioproducts, announced a collaboration to pilot the use of low-carbon ammonia fertilizer to reduce the carbon intensity of corn production and ethanol. Demand for ethanol with a lower carbon intensity is expected to increase significantly to meet low-carbon fuel standards.
Ammonia is commonly used as a direct application fertilizer for U.S. corn production, but the conventional ammonia production process is emissions intensive. As a result, ammonia production is a significant contributor to the lifecycle carbon intensity of corn production and thus ethanol production. Producing ethanol with corn grown using low-carbon ammonia can reduce the carbon intensity of ethanol up to 10 percent. The companies are targeting the fall of 2024 for the first applications of low-carbon ammonia with subsequent applications in spring of 2025, to produce a first crop to be harvested in the fall of 2025.
“We are pleased to collaborate with POET on this important step forward in developing a low-carbon ethanol value chain that links low-carbon fertilizers to farmers to ethanol production,” said Bert Frost, executive vice president, sales, supply chain and market development, CF Industries. “Fertilizers manufactured with a lower carbon intensity provide a quantifiable and certifiable method of decarbonizing bioethanol inputs. We look forward to demonstrating these benefits not just for ethanol production but for corn growers as well.”
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“At POET, we have always striven to bring new value to our producers and our partnership with CF Industries continues this mission,” said Christian McIlvain, President of POET Grain. “We want to prepare and educate our corn producers on the realities of the impact of the carbon in their grain. This initiative not only gives producers a low-carbon ammonia option but also provides the opportunity to educate them on their farm’s carbon score and what that could mean for their grain value.”
The companies intend to jointly develop a low-carbon fertilizer supply chain to track, validate and certify carbon intensity reduction originating from low-carbon ammonia manufacturing at CF Industries’ Donaldsonville Complex in Louisiana, through ethanol production at POET’s locations in Bingham Lake, MN, Emmetsburg, IA, Fairmont, NE and North Manchester, IN. This includes implementing supply plans with fertilizer retailers serving farms that supply corn to these POET bioprocessing plants and developing monetization opportunities for farmers who use this low-carbon fertilizer. Producers can reach out to their local POET grain merchandiser for more information.
For the demonstration project’s fall 2024 and spring 2025 low-carbon ammonia applications, the companies will leverage green ammonia produced at CF Industries’ Donaldsonville Complex. Green ammonia refers to ammonia produced with hydrogen sourced from an electrolysis-based production process that produces no carbon dioxide emissions but is otherwise identical to commodity ammonia. CF Industries recently completed installation of a 20MW electrolyzer at its Donaldsonville Complex. Start-up of the electrolyzer is imminent and the Company intends to purchase renewable energy certificates to pair with the start-up to enable green ammonia production.
SOURCE: Businesswire