**CF Industries Seals Major Ammonia Expansion: $1.675B Deal Reshapes North American Production Landscape**

CF Industries has officially closed its acquisition of Incitec Pivot Limited's ammonia production complex in Waggaman, Louisiana—a $1.675 billion transaction that fundamentally strengthens the company's position as North America's ammonia leader. This strategic move combines world-class infrastructure with the company's ambitious low-carbon energy agenda.

**The Deal Breakdown: What's Really at Stake**

The transaction includes not just the Waggaman facility itself, but a sophisticated offtake arrangement: CF Industries allocated approximately $425 million to secure a long-term supply agreement delivering up to 200,000 tons of ammonia annually to IPL's Dyno Nobel subsidiary. The remaining capital came from cash reserves, signaling management's confidence in the deal's immediate profitability.

What makes this acquisition strategically compelling is the asset itself—Waggaman hosts one of North America's newest ammonia production units, meaning CF Industries gains cutting-edge capacity without building from scratch. The company's network integration playbook suggests significant operational synergies ahead: consolidated logistics, optimized supply chains, and streamlined distribution across existing channels.

**Beyond the Numbers: The Green Ammonia Angle**

The real game-changer lies in CF Industries' roadmap for the Waggaman site. The company plans to accelerate deployment of carbon capture and sequestration (CCS) technologies, positioning the facility as a cornerstone of its low-carbon ammonia production network. This isn't just environmental posturing—it's revenue generation through 45Q tax credits for sequestered CO₂.

As the energy transition accelerates, low-carbon ammonia increasingly functions as a clean energy carrier for hydrogen applications, emissions abatement, and industrial decarbonization. Waggaman, integrated into CF Industries' ecosystem, becomes a competitive moat in this emerging market segment.

**What Comes Next**

CF Industries assumes existing medium and long-term offtake agreements with two established customers. The company expects gross margins per ton to align with its ammonia segment benchmarks, with upside potential as greater capacity utilization and operational optimization materialize post-integration.

The Waggaman acquisition represents CF Industries' commitment to scale its clean energy production capabilities while maintaining the industry's largest global ammonia footprint. It's a textbook example of capital deployed for both immediate profitability and long-term strategic positioning in the low-carbon economy.