CF Industries announced a partnership with Japan's leading power generator, JERA, and trading company Mitsui & Co to construct a large low-carbon ammonia plant for around $4 billion. This venture is significant as it aligns with President Joe Biden's climate legislation, promoting clean energy growth in the U.S. The project is set to be eligible for a 45Q tax credit due to its expected sequestration of 2.3 million metric tons of CO2 annually. Additionally, Japan is anticipated to offer price support to bridge the gap between ammonia and coal prices for 15 years. Hydrogen and ammonia play vital roles in Japan's energy security plan by helping reduce reliance on traditional fossil fuels. The facility, located at CF Industries' Blue Point Complex in Louisiana, will produce low-carbon ammonia through autothermal reforming (ATR) and CO2 dehydration and compression processes. Operational by 2029, the annual capacity will be 1.4 million tons, making it the largest such production site globally based on nameplate capacity. Each partner will contribute funding proportional to their stake and receive ammonia according to their agreement. JERA intends to offload 490,000 tons, considering supplying its Hekinan thermal power station in central Japan. Both JERA and Mitsui anticipate rising ammonia demand in Europe as environmental standards tighten.