Occidental’s Blue Point Ammonia Project

Ammonia (NH₃), a hydrogen-based fuel is synthesised using the century-old Haber–Bosch process and is a globally significant and strategically important commodity. While it is used across a wide range of industries, including chemicals, refrigeration, mining, and pharmaceuticals, its most critical role lies in the production of synthetic nitrogen fertilisers. This function underpins global food security, with estimates suggesting that half the current global population could not be fed without synthetic ammonia.[1]^,[2]

However, the flip side of this lifeline is its environmental impact: current production methods are highly carbon-intensive, releasing between 1.9 and 2.6 metric tonnes of carbon dioxide (CO₂) for every tonne of ammonia produced[3]. This environmental footprint is driving efforts to decarbonise ammonia production through low-carbon hydrogen, renewable energy integration, and advanced process technologies.

The IEAGHG has actively contributed to this space through a series of studies on low-carbon hydrogen and ammonia production. These include Low-Carbon Hydrogen from Natural Gas: Global Roadmap (2022-07, August 2022)[4], Blue Hydrogen: Beyond the Plant Gate (2022-06, August 2022)[5], a Comparative Analysis of Electrolytic Hydrogen Production Technologies with Low-Carbon (CCS-abated) Hydrogen Pathways (2024-08, November 2024), the Feasibility Study on Achieving Deep Decarbonisation in Worldwide Fertiliser Production (2022-05, March 2022)[6] and the Insight Paper Low-Carbon Ammonia Roadmap (2023-03). These publications provide peer-reviewed, in-depth technical assessments of the cost and environmental performance of low-carbon hydrogen and ammonia pathways.
According to a recent BloombergNEF analysis, clean ammonia supply could grow 22- to 30-fold by 2030, reaching up to 32 million metric tonnes of capacity.[7] This surge underscores the accelerating momentum behind low-carbon ammonia as both a decarbonisation solution and a key enabler of future clean energy systems.

Reflecting this drive, Occidental’s subsidiary 1PointFive, in collaboration with CF Industries, JERA Co., Inc., and Mitsui & Co., Ltd., announced the Final Investment Decision (FID) for the Blue Point low-carbon ammonia project in Louisiana on April 8, 2025.[8] With an estimated investment of $4 billion, the facility is designed to produce approximately 1.4 million metric tonnes of low-carbon ammonia annually, positioning it as the world’s largest ammonia production plant by nameplate capacity,[9] albeit representing less than 1% of current global ammonia output (global ammonia output was approximately 185.6 Mt in 2023).[10] Production is slated to commence in 2029.

The project aims to capture and store about 2.3 million tonnes of CO₂ annually, produced almost entirely during the hydrogen production stage of ammonia synthesis using autothermal reforming (ATR). This effort is expected to reduce CO₂ from production by more than 95%.

Fossil-based hydrogen production via thermochemical processes results in a CO₂ byproduct stream with a high concentration, making it efficient to capture. 1PointFive will manage the transportation and permanent sequestration of the captured CO₂ at its Pelican Sequestration Hub in Louisiana, utilising a Class VI well for deep saline aquifer storage. Further decarbonisation of ammonia production can be achieved by replacing fossil-derived hydrogen with hydrogen produced via water electrolysis using low-carbon electricity.

This project plans to export ammonia to international markets, including Asia and Europe. Given the growing emphasis on decarbonising global supply chains, ensuring that shipping practices are clean and sustainable will be critical to maintaining the climate integrity of the value chain.

Scaling up near-zero-emission ammonia production is essential for industry decarbonisation. Under the Sustainable Development Scenario pathway, nearly all new ammonia capacity from the early 2030s onward should adopt low-carbon technologies, requiring the deployment of four CCS-equipped and five electrolytic ammonia plants annually through 2050.[11]

Given the scale of this transition, early and decisive action with sustained regional and international collaboration will be vital to ensuring the ammonia sector aligns with clean energy goals by 2050 and beyond.

As the sector evolves, IEAGHG continues to provide authoritative analysis and technical leadership in decarbonisation efforts, by generating robust evidence, informing decision-making, and supporting international collaboration.


[1] Clean Ammonia in the Future Energy System. Hydrogen Europe
[2] IEAGHG, Low-Carbon Ammonia Roadmap (2023-03)
[3] From Green Ammonia to Lower-Carbon Foods. McKinsey & Company
[4] IEAGHG, Low-Carbon hydrogen from Natural Gas: Global Roadmap, 2022-07, August 2022
[5] IEAGHG, Blue Hydrogen: Beyond the Plant Gate, 2022-06, August 2022
[6] IEAGHG, Study on Achieving Deep Decarbonization in Fertilizer Production, 2022-05, March 2022
[7] Ammonia Supply Outlook 2024: A Clean Takeover. BloombergNEF
[8] Oxy. 1PointFive Signs 25-Year Sequestration Agreement for CF Industries
[9] CF Industries Announces Joint Venture. CF Industries.
[10] Summary Report Medium-Term Fertilizer Outlook 20024 – 20028. International Fertilizer Association
[11] Ammonia Technology Roadmap. IEA