CF Industries and POSCO Evaluating Joint U.S.-Based Clean Ammonia Project and Long-Term Clean Ammonia Offtake Agreement into South Korea

Companies to Initiate FEED Study on Autothermal Reforming (ATR) Ammonia Facility

CF Industries Holdings, Inc., the world’s largest producer of ammonia, and POSCO Holdings Inc. (POSCO), South Korea’s largest steelmaker as well as a leader in energy trading and power generation, announced today that the companies are evaluating a joint venture to construct a low-carbon clean ammonia plant at CF Industries’ Blue Point Complex in Ascension Parish, Louisiana, United States, along with long-term low-carbon clean ammonia offtake into South Korea.

As part of their evaluation, CF Industries and POSCO will initiate a front-end engineering and design (FEED) study on autothermal reforming (ATR) ammonia production technology. ATR technology, when combined with carbon capture and sequestration (CCS), is expected to reduce carbon dioxide (CO₂) emissions from the ammonia production process by more than 90% compared to conventional ammonia plants without CCS, enabling the resulting low-carbon clean ammonia to comply with the South Korean government’s Clean Hydrogen Energy Portfolio Standard.

Should the project move forward, POSCO expects to import low-carbon clean ammonia from the facility to South Korea to support decarbonization of POSCO's own and third-party coal-based power generation facilities. Additionally, POSCO intends to convert low-carbon clean ammonia into hydrogen in order to use low-carbon hydrogen in gas-based power plants and in the steel-making process itself.

“We are pleased to collaborate with POSCO to support both their decarbonization goals as well as those of South Korea,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “POSCO’s concrete plans to use low-carbon ammonia to accelerate decarbonization in steel manufacturing and power generation in South Korea represent significant new demand for low-carbon ammonia as a clean energy source. We look forward to leveraging our two companies’ industry-leading expertise to advance our shared commitment to a more sustainable future.”

Yoo Byeong-ok, Chief Green Materials & Energy Business Officer at POSCO Holdings, stated, "The United States is one of the key strategic regions for POSCO Group as it is actively pursuing the establishment of an economically and reliably overseas hydrogen and ammonia supply network through the IRA support policy." He further explained, "We plan to establish a production hub for clean ammonia in the United States in collaboration with CF Industries, the largest ammonia producer, and secure a stable supply network to timely provide clean hydrogen necessary for domestic power generation and hydrogen reduction steelmaking."

The FEED study is expected to be completed in the second half of 2024, with a final investment decision by CF Industries and POSCO to follow.

Since 2020, CF Industries has advanced industry-leading projects to decarbonize its ammonia production network and position the Company to supply a substantial volume of low-carbon clean ammonia within the next few years. This includes leveraging CCS technologies at its Donaldsonville Complex where CF Industries is constructing a CO₂ dehydration and compression facility to enable the capture and permanent sequestration of up to 2 million tons of CO₂ per year with ExxonMobil, starting in 2025. The Company has also commenced a front-end engineering and design study with Mitsui & Co., Ltd. to construct a greenfield low-carbon clean ammonia facility utilizing steam methane reforming (SMR) ammonia technology along with CCS at its Blue Point Complex in Louisiana. Additionally, CF Industries is constructing North America’s first commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 tons of green ammonia production beginning in 2024.

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 POSCO Holdings, Inc.

Posco Group plans to establish a "clean hydrogen business model" by leveraging the capabilities of its subsidiary companies engaged in various aspects of hydrogen production, transportation, storage, and utilization, aiming to establish a hydrogen production capacity of 7 million tons by 2050. In order to achieve this, Posco Holdings is actively promoting the development of various green and blue hydrogen projects, with a focus on strategic regions such as Australia, the Middle East, Southeast Asia, and North America.

Cautionary Statement: All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), 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 Company’s control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about strategic plans and management’s expectations with respect to the production of green and blue (low-carbon) hydrogen and ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a clean energy economy, greenhouse gas reduction targets, projected capital expenditures, statements about future financial and operating results, and other items described in this communication.

More detailed information about factors that may affect the Company’s performance and could cause actual results to differ materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.’s filings with the Securities and Exchange Commission, including CF Industries Holdings, Inc.’s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company’s web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our 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 our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company disclaims 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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