Global trading and investment company Mitsui & Co and nitrogen fertilizer manufacturer and distributor CF Industries announced an agreement to jointly explore the development of blue ammonia projects across the U.S.

Hydrogen, and related materials like ammonia, are viewed as one of the key building blocks of the transition to a cleaner energy future, given their ability to act both as clean energy carriers and fuels, as well as CO2-neutral feedstocks for the production of green chemicals. Extracting hydrogen from other materials, however, often generates pollutants and GHG emissions. Blue ammonia is produced from nitrogen and hydrogen from natural gas with its byproduct carbon dioxide removed through carbon capture and long-term storage.

Under the new agreement, the two companies plan to conduct a range of preliminary studies on the feasibility of blue ammonia production in the U.S. across areas including blue ammonia supply and supply chain infrastructure, CO2 transportation and storage, expected environmental impacts, and blue ammonia economics and marketing opportunities in Japan and in other countries.

Tony Will, President and Chief Executive Officer at CF Industries Holdings, Inc, said:

“As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs. CF Industries and Mitsui share a belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully.”