DONALDSONVILLE, La. (BRPROUD) — An ammonia production plant in Donaldsonville is set to receive $198.5 million to reduce carbon emissions, according to a Friday announcement from the governor.

Governor John Bel Edwards’ announcement said CF Industries plans to use the money to build a CO2 compression and dehydration unit to reduce emissions. The project itself is expected to create 12 new direct jobs with average salaries of $100,000 a year plus benefits while retaining 521 existing jobs.

“To achieve our goal of net zero emissions by 2050, Louisiana must simultaneously increase new clean energy investments and decrease current greenhouse gas emissions,” Gov. Edwards said. “CF Industries’ plan to add carbon capture capabilities to its Donaldsonville plant accomplishes that, while stimulating economic activity and creating high-paying jobs in Ascension Parish. We applaud the company’s commitment to sustainability and encourage other industry leaders to recognize that decarbonization is good for both our economy and our climate.” 

According to Gov. Edwards, CF Industries estimates the project would enable up to 6,000 tons of process CO2 per day to be captured, liquefied and transported while allowing the company to produce up to 1.7 million tons of blue ammonia annually. 

“We believe that ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia for this purpose will grow meaningfully in the coming years,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We are pleased to be able to leverage our previous investments in Louisiana to add CO2 processing technology to our Donaldsonville complex that will enable a significant volume of blue ammonia production by the middle of the decade. This will position CF Industries and Louisiana at the forefront of this emerging global market.”

In October 2021, the governor announced the Race to Zero initiative to help Louisiana fight climate change by reducing greenhouse gas emissions. He pledged to have net-zero carbon emissions by 2050.