CF Industries will buy Louisiana ammonia plant

Abstract

CF Industries has agreed to buy an ammonia plant in Waggaman, Louisiana, from the Australian fertilizer and explosives maker Incitec Pivot for nearly $1.7 billion. The plant is relatively new; Incitec’s Dyno Nobel subsidiary built it in 2016. It has a capacity of 800,000 metric tons (t) per year. CF says that the plant is connected by pipeline to its own large ammonia complex in Donaldsonville, Louisiana. The company is considering adding carbon capture and storage infrastructure to the Waggaman site. As part of the deal, CF will supply Dyno Nobel with 180,000 t of ammonia per year. Incitec says it is selling off excess ammonia capacity and that the supply agreement will allow it to expand its site in Louisiana, Missouri, where it makes ammonium nitrate.