Phelps Advises CF Industries on Development of New $4B Low-Carbon Ammonia Facility

A team of Phelps lawyers advised CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, on a joint venture with JERA Co., Ltd. (JERA) Japan’s largest energy company and Mitsui & Co, a global investment and trading company, to build a $4 billion low-carbon ammonia production facility in Ascension Parish, Louisiana.

CF Industries will build and operate a scalable infrastructure at its Blue Point site to supply the facility with services, including product storage and loading. The company will invest approximately $550 million for these facilities and receive ongoing services revenue from the ammonia production facility that will have an annual nameplate capacity of nearly 1.4 million metric tons. In addition, the facility will have a carbon dioxide (CO2) dehydration and compression unit to prepare captured CO2 for transportation and sequestration.

Baton Rouge partners Jeff Tomlinson and Kelsey Kornick Funes led the Phelps team, which acted as local counsel to CF Industries.  Phelps advised the client on Louisiana land lease, servitude, and construction contract matters.

The Phelps team included Baton Rouge partners Madison DeWitt, Randy Roussel, Anthony Gambino and Ryan Moon, Baton Rouge senior partner Jonathan Benda, and Baton Rouge associates Paxson Guest, Caroline Broussard Sehon and Alexandra Saliba.

Construction of the low-carbon ammonia facility is expected to begin in 2026 and production of low-carbon ammonia is expected in 2029.

Read more from the company press release.