CF Industries Ships Its First Low-Carbon Ammonia to Europe

CF Industries Holdings, Inc. CF recently announced shipment of 23,500 metric tons of certified low-carbon ammonia from its Donaldsonville, LA, facility. The shipment was purchased by Trafigura, a global commodities market leader.  It is destined for Antwerp, Belgium, for supply to Envalior, a leader in Engineering Materials. The low-carbon ammonia will be used in the production of low-carbon caprolactam.

The ammonia is certified under the Verified Ammonia Carbon Intensity (VACI) Program, which confirms a significantly lower well-to-gate carbon footprint than conventional natural gas-based ammonia production. The VACI Program is developed by The Fertilizer Institute to certify greenhouse gas emissions by calculating the carbon intensity of the facility’s ammonia production.

The milestone marked CF Industries’ first low-carbon premium offering to Europe. The partnership of the three market leaders helped develop a low-carbon ammonia supply chain prior to the implementation of the European Union’s carbon border adjustment mechanism. The companies also share a vision to develop low-carbon solutions for industrial use.

CF Industries’ Donaldsonville Complex has a carbon capture and storage project set to sequester up to 2 million metric tons of CO2 annually, enabling the production of VACI-certified low-carbon ammonia. It is expected to produce 1.9 million tons per year and can also be used to upgrade into low-carbon nitrogen fertilizer products.

CF’s shares have gained 8.5% over the past year compared with the industry’s 27.2% rise.

CF’s Zacks Rank & Key Picks

CF currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Contango Ore, Inc. CTGO, Methanex Corporation MEOH and The Mosaic Company MOS. CTGO sports a Zacks Rank #1 (Strong Buy), while MEOH and MOS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CTGO’s current-year earnings is pegged at 67 cents per share, indicating a rise of 119.20%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3409.95%. Its shares have gone up by 35.3% in the past year.

The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.7 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 41.1% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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