Fertilizers

Jera's option to reduce stake in US NH3 project expires

Jera's option to reduce stake in US NH3 project expires

London, 14 January (Argus) — Japanese power producer Jera has not exercised a right to reduce its ownership stake in fertilizer producer CF Industries' planned $4bn carbon capture and storage (CCS) enabled ammonia facility on the US Gulf coast, known as Blue Point. The 1.4mn t/yr plant is a joint venture between CF, Jera and Japanese trading firm Mitsui. CF holds 40pc, Jera 35pc and Mitsui 20pc in the development. Jera had an option to reduce its stake below 35pc to a minimum of 20pc, with CF having to increase its stake by the same amount that Jera reduced its holding. That option expired on 31 December 2025 and can no longer be exercised, according to a report that CF filed with the US Securities and Exchange Commission in January. Jera's decision to retain its 35pc stake comes soon after it was selected to receive subsidies from the Japanese government's hydrogen and ammonia contracts for difference (CfD) scheme on 19 December. Mitsui was also selected for 15-year government subsidies under the CfD scheme's second round. Partners of the Blue Point venture will have offtake rights according to the size of their stake in the project, meaning that Jera will export around 490,000 t/yr from the Louisiana plant to Japan. Most volumes will be used for ammonia co-firing at its 1GW No.4 unit at the Hekinan coal-fired power plant in Japan, which the firm has said is on track to reach a sustained 20pc co-firing rate in 2029. Blue Point's first volumes are also expected in 2029 following a final investment decision in April . Jera retaining its 35pc stake in the project is a positive sign for the developing low-carbon ammonia industry after multiple recent setbacks. Indications that South Korea's new government could push away from ammonia co-firing had undermined some confidence in the future of ammonia co-firing in Asia, while delays to the International Maritime Organisation's net-zero framework has slowed investment decisions in the maritime sector. Funding cuts for low-carbon initiatives, particularly in the US, and slim demand signals, have seen a spate of project cancellations in recent months, with the latest cancellation announced as recently as last week. By Lizzy Lancaster Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.