US fertiliser producer in certified gas supply deal
CF Industries, a leading global producer of ammonia-based fertilisers, said February 14 it had entered into an agreement with global major BP for the supply of 2.2bn ft3 of certified natural gas in 2023.
The natural gas has been certified as ‘A’ grade under MiQ’s methane standard, which represents methane emissions associated with its production as 90% lower than industry production averages. It is the first known purchase of MiQ certified gas by an industrial company for use in ammonia production.
“CF Industries is the first industrial giant to use MiQ-independently certified natural gas to significantly reduce scope 3 emissions from its production processes,” MiQ CEO Georges Tijbosch said. “We’ve seen multiple utilities across in the US purchase independently certified gas to reduce their emissions, and this key commitment by CF Industries should be a trigger for other natural gas users in hard to abate industries to prioritize the minimisation of their supply chain emissions through certification.”
BP was awarded the ‘A’ grade certification on its South Haynesville production, about 200mn ft3/day, in December 2021, and is pursuing additional certifications at its other US onshore production sites.
MiQ has said that using ‘A’ grade certified natural gas as a feedstock in ammonia production would lower the purchaser’s natural gas supply chain-related scope 3 emissions by 90% and reduce the lifecycle carbon intensity by up to 20%, using a 100-year global warming potential. And using certified natural gas alongside carbon capture and storage (CCS) technologies could eliminate up to 94% of CO2emissions associated with ammonia production.
“This initial purchase of certified natural gas is an important step in CF Industries’ decarbonisation journey and reinforces our commitment to be at the forefront of low-carbon ammonia production,” CF Industries CEO Tony Will said.