DEERFIELD, Ill., April 24, 2023--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, and NextEra Energy Resources, LLC, the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage, today announced a memorandum of understanding (MOU) for a joint venture to develop a zero-carbon-intensity hydrogen project at CF Industries’ Verdigris Complex in Oklahoma.
The proposed project was included in the funding application submitted to the U.S. Department of Energy (DOE) this month by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program. CF Industries and NextEra Energy Resources anticipate that support for the project from the DOE program will be a key aspect of their evaluation process. A final investment decision has not been made for this project.
The proposed project envisions a jointly owned 100-megawatt (MW) electrolysis plant at the Verdigris Complex that would be powered by a dedicated 450-MW renewable energy facility developed by NextEra Energy Resources. CF Industries would be the sole offtaker of 100% of the zero-carbon green hydrogen output from the site’s electrolyzers. The green hydrogen would be used to produce up to 100,000 tons per year of zero-carbon green ammonia, which would be facilitated by debottlenecking Verdigris’ ammonia plants. CF Industries expects the resulting green ammonia production to support the transition of American agriculture to low- and zero-carbon fertilizers, helping to remove up to 130,000 metric tons of carbon dioxide emissions from the agriculture supply chain each year.
"The use of decarbonized ammonia in agriculture offers the most certain, quantifiable and verifiable way to reduce the lifecycle carbon footprint of the food we eat," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "We are pleased to work with NextEra Energy Resources to explore how best green hydrogen could help accelerate the adoption of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the United States and contribute to decarbonizing the agriculture supply chain."
"NextEra Energy Resources is committed to leading the decarbonization of the American economy, and the agriculture industry is fundamental to that goal," said Rebecca Kujawa, president and chief executive officer of NextEra Energy Resources. "We are honored to work with CF Industries to bring green hydrogen production to its Verdigris Complex while also creating additional jobs and economic benefits for the state of Oklahoma."
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company’s website at www.cfindustries.com and encourages those interested in the Company to check there frequently.
About NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated entities, "NextEra Energy Resources") is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 27,400 megawatts of total net generating capacity, primarily in 40 states and Canada as of year-end 2022. NextEra Energy Resources is the world's largest generator of renewable energy from the wind and sun, a world leader in battery storage and is driving the development of the green hydrogen economy. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire and Wisconsin as part of the NextEra Energy nuclear fleet. NextEra Energy Resources offers a wide range of clean energy solutions to help businesses and customers across the country meet their emissions reduction goals. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.NextEraEnergyResources.com.
Cautionary Statement: All statements in this communication by CF Industries and/or NextEra Energy Resources (collectively, the "companies"), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" or "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond the companies’ control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about the companies’ strategic plans and management expectations with respect to the production of green hydrogen and green ammonia, the transition to and growth of a clean energy economy, greenhouse gas reduction targets, projected capital expenditures, the ability to receive DOE funding, statements about future financial and operating results and other items described in this communication.
More detailed information about factors that may affect CF Industries’ or NextEra Energy Resources’ performance and could cause actual results to differ materially from those in any forward-looking statements may be found in the applicable company’s filings with the Securities and Exchange Commission, including each company’s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of each company’s respective web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of forward-looking statements and, consequently, the descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the companies’ respective businesses, results of operations, cash flows, financial conditions and future prospects. Forward-looking statements are given only as of the date of this communication and CF Industries and NextEra Energy Resources disclaim any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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