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Nutrien Announces Intent to Build World’s Largest Clean Ammonia Production Facility

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Evaluation of existing site in Geismar, Louisiana to produce 1.2 million tons of clean ammonia annually

SASKATOON, Saskatchewan — Nutrien Ltd. (TSX and NYSE: NTR) announced today that it is evaluating Geismar, LA as the site to build the world’s largest clean ammonia plant. Building on the company’s expertise in low-carbon ammonia production, clean ammonia will be produced using innovative technology to reduce CO2 emissions by at least 90 percent. The project will progress to the front-end engineering design (FEED) phase, with a final investment decision expected to follow in 2023. If approved, construction on the approximately US$2 billion facility would begin in 2024 and full production is expected in 2027.

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The new clean ammonia plant would leverage low-cost natural gas, access to tidal water to global markets and high-performance carbon capture and capture infrastructure at its existing facility in Geismar, LA to meet growing demand in the agricultural, industrial and emerging energy markets . The plant is expected to have an annual production capacity of 1.2 million tons of clean ammonia and capture at least 90 percent of CO2 emissions, with more than 1.8 million tons of CO2 being permanently captured in dedicated geological storage each year. The new factory will use automatic thermal reform technology to achieve the lowest carbon footprint of any factory on this scale and has the potential to move towards net-zero emissions with future modifications.

“Our commitment to the development and use of both low-carbon and clean ammonia is prominent in our strategy to provide solutions that will help meet global decarbonisation goals while sustainably addressing global food insecurity. Leadership in clean ammonia production will play a key role in achieving our Scope 1 and 2 emissions reduction targets for 2030, as part of our Feeding the Future Plan,” said Ken Seitz, Interim President and CEO of Nutrien.

Nutrien has signed a term sheet with Denbury Inc., a trusted partner for nearly a decade, that would allow expansion of the existing volume of carbon capture capacity in the immediate vicinity of its Geismar facility, if selected as the final construction site.

“Nutrien is optimally positioned to serve the global emerging markets for clean ammonia and to develop a path for a low-carbon supply chain,” said Raef Sully, Nutrien’s Executive Vice President and CEO of Nitrogen and Phosphate. “We are delighted to partner with Denbury on this initiative, given our established track record of collaboration. It is another example of how we are building on our expertise in low-carbon ammonia to decarbonize the agricultural sector while helping to sustainably feed and fuel the future.”

Nutrien has also signed a letter of intent to partner with Mitsubishi Corporation to purchase up to 40 percent of the plant’s projected output for delivery to the Asian fuel market, including Japan, once construction is complete.

Nutrien is committed to leading the way in developing low-carbon and clean ammonia to rapidly accelerate the decarbonization of hard-to-reduce sectors such as agriculture, industrial ammonia use, power generation, and marine fuel. As one of the world’s largest ammonia merchants for marine transportation, Nutrien announced a partnership agreement with EXMAR in 2021 to jointly develop and build one of the first low-carbon, ammonia-fired ocean vessels to decarbonize shipping. Nutrien is also engaged with the US Department of Energy and other partners to explore flexible, clean ammonia production using air, water and variable renewable electricity.

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Visit our Clean Ammonia webpage for more information.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) under applicable securities laws, including our expectations for a clean ammonia production facility (and timing thereof), production capacity, use of technologies, partnerships, carbon capture and capture, reduction of greenhouse gases and carbon footprint, as well as potential for net-zero emissions, projected capital expenditures, statements about future operating results and off-take agreements, and our expectations for low-carbon ammonia-fueled marine vessels. Forward-looking statements in this press release are based on certain important expectations and assumptions of Nutrien, many of which are beyond our control. While Nutrien believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, the forward-looking statements should not be relied upon undue reliance on the forward-looking statements, as Nutrien makes no representation that they will prove correct. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from any anticipated results or expectations expressed in this press release. For information about the assumptions made and the risks and uncertainties that could cause actual results to differ from those anticipated, please refer to our reports filed with the Canadian securities regulators and the US Securities and Exchange Commission.

The forward-looking statements in this press release are made as of the date of this press release and Nutrien disclaims any intent or obligation to update or revise any forward-looking statements in this press release, except to the extent required by applicable law.

About Nutrien

Nutrien is the world’s largest supplier of crop inputs and services and plays a vital role in helping growers increase food production in a sustainable way. We manufacture and distribute approximately 27 million tons of potassium, nitrogen and phosphate products worldwide. With this capability and our industry-leading agricultural retail network, we are well positioned to meet the needs of our customers. We operate with a long-term vision and are committed to working with our stakeholders to address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple opportunities for growth and the ability to return capital to shareholders.

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About Denbury

Denbury is an independent energy company with operations and assets focused on Carbon Capture, Use and Storage (CCUS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For more than two decades, the company has had a unique strategic focus on the use of CO2 in its EWC activities and since 2012 it has also been active in CCUS through the injection of captured industrially-derived CO2. The company currently injects more than four million tons of captured industrial CO2 annually, with the goal of fully offsetting Scope 1, 2 and 3 CO2 emissions by 2030, primarily by reducing the amount of captured industrial CO2 used in its operations. to increase . For more information about Denbury, visit www.denbury.com.

About Mitsubishi Corporation:

Mitsubishi Corporation is a global integrated business company that develops and operates companies in virtually every industry, including natural gas, industrial materials, petroleum and chemical solutions, mineral resources, industrial infrastructure, automotive and mobility, food industry, consumer industry, energy solutions and urban development. For more information about Mitsubishi, please visit https://www.mitsubishicorp.com/jp/en.

Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20220518006099/en/

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Contacts

FOR MORE INFORMATION:

Nutrien
Investor Relations
Jeff Holzman
Vice Chairman, Investor Relations
(306) 933-8545

Media relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015

Contact us at: www.nutrien.com

Denbury
Investor Relations
Brad Whitmarsh
Vice Chairman, Investor Relations
(972) 673-2020

Beth Bierhaus
Investor Relations Analyst
(972) 673-2554

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