Partnerships Sustainable Agriculture

CF Industries and POET Launch Pilot to Develop Low-Carbon Fertilizer and Ethanol Supply Chain

CF Industries posts $353M Q3 profit, advances low-carbon ammonia projects, earns 45Q credits, and starts $2B share repurchase.

Key Takeaways:

  • CF Industries and POET have launched a pilot program to develop a low-carbon fertilizer-to-ethanol supply chain.
  • The initiative involves major agricultural cooperatives across the U.S. Midwest.
  • Low-carbon ammonia fertilizer is being used to reduce the carbon intensity of corn and ethanol production.
  • POET expects to produce 5–6 million gallons of lower-carbon-intensity ethanol from the pilot.
  • The program tracks carbon intensity certification from fertilizer production through ethanol output.

CF Industries and POET Collaborate on Low-Carbon Agriculture Pilot

CF Industries Holdings, Inc. and POET have launched a pilot project aimed at jointly developing a low-carbon fertilizer supply chain to support lower-carbon ethanol production. The initiative brings together fertilizer production, agricultural retail, corn growers, and biofuel processing to demonstrate how low-carbon nitrogen fertilizer can reduce emissions across the corn-to-ethanol value chain.

The pilot includes WinField United, the crop inputs and insights business of Land O’Lakes, Inc., along with agricultural cooperatives NuWay-K&H, New Cooperative, and Farmer’s Cooperative. Participating growers are located across Iowa, Minnesota, Missouri, and Nebraska.


Tracking Carbon Intensity From Fertilizer to Ethanol

As part of the program, participants are tracking carbon intensity certification of low-carbon fertilizer produced by CF Industries and distributed through its retail network to corn growers. The corn grown using this fertilizer is then supplied to POET facilities in Minnesota, Iowa, and Nebraska for ethanol production.

The consortium completed its first distribution and application of low-carbon ammonia fertilizer in fall 2025. POET expects that corn produced under the pilot will enable the production of approximately 5–6 million gallons of ethanol with a lower carbon intensity.

“Fertilizers manufactured with a lower carbon intensity provide a quantifiable and certifiable method of decarbonizing bioethanol inputs,” said Bert Frost, Executive Vice President and Chief Commercial Officer at CF Industries.


Low-Carbon Ammonia Production at Scale

CF Industries produces low-carbon ammonia at its Donaldsonville Complex in Louisiana by capturing carbon dioxide emissions generated during ammonia production and permanently storing them underground. At full capacity, the facility can produce up to 1.9 million tons of low-carbon ammonia annually, enough to support fertilizer needs for an estimated 19–22 million acres of corn.

“At POET, we’re always working to expand markets for farmers and support Midwest economies,” said Christian McIlvain, President of POET Grain. “This trial provides an additional pathway to reduce the carbon intensity of our bioethanol.”


Role of Agricultural Cooperatives in the Pilot

WinField United and its cooperative partners play a central role in connecting low-carbon fertilizer production with on-farm adoption. The cooperatives manage distribution, application, and grower engagement across the participating states.

“Collaborating on this pilot program that aims to build a sustainable supply chain from production to the end user was an immediate yes,” said Paul Barr, Senior Director of Procurement, Operations and Transportation at WinField United Crop Nutrients.

The companies involved stated that the pilot is intended to demonstrate the viability of a low-carbon ethanol value chain that links fertilizer producers, cooperatives, farmers, and biofuel processors, while generating measurable emissions reductions across the system.

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