April 8 (Reuters) - CF Industries ( CF ) said on Tuesday

it had formed a joint venture with Japan's largest energy firm,

JERA, and investment firm Mitsui to construct low-carbon ammonia

facility for about $4 billion.

WHY IS IT IMPORTANT

Former President Joe Biden passed the largest climate change

legislation in U.S. history in 2022, meant to kick off a boom in

American clean energy development including low carbon emission

products.

Ammonia producer CF Industries ( CF ) said it is expected to

qualify for 45Q tax credit on sequestration of about 2.3 million

metric tons of carbon dioxide (CO2) per year.

CONTEXT

The joint venture will construct an autothermal reforming

(ATR) ammonia production facility with a CO2 dehydration and

compression unit at CF Industries' ( CF ) Blue Point Complex in

Louisiana, to prepare captured CO2 for transportation and

sequestration.

Occidental's carbon capture firm, 1PointFive, will

provide transportation and sequestration of CO2 for the joint

venture.

Production of low-carbon ammonia is expected to begin in

2029.

BY THE NUMBERS

After formation, CF Industries ( CF ) will hold a 40% stake in the

joint venture. JERA will own a 35% stake and Mitsui the rest.

The facility will have a production capacity of about 1.4

million metric tons, which would be the largest ammonia

production facility by nameplate capacity in the world, CF

Industries ( CF ) said.

The cost for the facility will be funded by each partner

according to their ownership percentage.