Low-Carbon Fertilizer Initiative Advances Cleaner Ethanol with CF Industries, POET, and Ag Co-Ops
CF Industries Holdings, Inc. (NYSE: CF), a global leader in hydrogen and nitrogen manufacturing, has joined forces with POET, the world’s largest biofuel producer, to launch an ambitious pilot program designed to establish a low-carbon fertilizer supply chain that could significantly reduce the environmental footprint of corn farming and ethanol production.
The initiative brings together major agricultural cooperatives and retail partners to demonstrate how low-carbon nitrogen fertilizers can lower greenhouse gas emissions throughout the agricultural value chain—from fertilizer production and farm application to corn cultivation and renewable fuel processing. By linking climate-friendly fertilizer inputs with ethanol production, the project aims to accelerate the commercialization of low-carbon biofuels while supporting sustainability goals across rural America.
Building a New Model for Low-Carbon Agriculture
The pilot program includes participation from WinField United, the crop inputs and agronomic insights division of Land O’Lakes, Inc., one of the most influential agribusiness and food companies in the United States. Several prominent agricultural cooperatives—NuWay-K&H Cooperative, New Cooperative, and Farmer’s Cooperative—are also involved, representing a wide network of farmers and grain producers across the Midwest.
Together, these organizations are creating an integrated supply chain that tracks low-carbon fertilizer from production through distribution, farm application, corn harvesting, and ultimately ethanol production. The goal is to establish a transparent and verifiable system that certifies the carbon intensity of agricultural inputs and outputs, helping farmers, fuel producers, and end markets meet growing climate and sustainability standards.
Under the pilot, CF Industries supplies low-carbon nitrogen fertilizer through its established distribution network, ensuring the product reaches agricultural retailers and corn growers across Iowa, Minnesota, Missouri, and Nebraska. Farmers participating in the project apply the fertilizer to their fields, and the carbon footprint of both the fertilizer and resulting corn crop is tracked using certification tools designed to measure lifecycle emissions.
The corn grown using this lower-carbon fertilizer is then delivered to POET’s ethanol production facilities in Minnesota, Iowa, and Nebraska, where it is converted into renewable fuel with a reduced carbon intensity compared to conventional ethanol.
First Phase Successfully Completed
The consortium reported that the first distribution and application of low-carbon ammonia fertilizer were successfully completed in the fall of 2025. This milestone marks a key step in demonstrating that climate-friendly fertilizer solutions can be deployed at commercial scale without disrupting existing agricultural logistics or farm operations.
POET expects the pilot program to produce enough corn grown with low-carbon ammonia to generate approximately 5 to 6 million gallons of lower-carbon ethanol, offering a meaningful reduction in emissions compared to traditional production methods.
This volume represents a tangible proof-of-concept for how decarbonized agricultural inputs can help transform renewable fuel production and strengthen the climate credentials of ethanol in domestic and international markets.
Reducing Carbon Intensity Across the Bioethanol Value Chain
Executives from both companies emphasized that the project is designed to deliver measurable climate benefits while creating economic opportunities for farmers and rural communities.
“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. “We are proud to collaborate with POET, WinField United, NuWay-K&H, New Cooperative, and Farmer’s Cooperative to demonstrate the viability of a low-carbon ethanol value chain that links low-carbon fertilizers to retailers, to farmers, and ultimately to ethanol production.”
Frost highlighted that agriculture represents a significant portion of greenhouse gas emissions in fuel production, and reducing fertilizer-related emissions is one of the most effective ways to lower the overall carbon footprint of ethanol.
Expanding Market Opportunities for Farmers
POET leaders underscored the economic benefits of the pilot, noting that sustainability-driven markets are opening new revenue opportunities for growers while strengthening the long-term competitiveness of ethanol.
“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, delivering both environmental and economic benefits for rural communities.”
As regulatory frameworks and global fuel standards increasingly reward low-carbon energy, ethanol produced with reduced emissions could command premium pricing in domestic clean-fuel programs and international export markets. This creates new incentives for farmers to adopt climate-smart inputs while maintaining productivity and profitability.
Low-Carbon Ammonia Production at Donaldsonville
A critical foundation of the pilot is CF Industries’ production of low-carbon ammonia at its Donaldsonville Complex in Louisiana, one of the largest ammonia manufacturing facilities in the world.
At the site, CF Industries captures carbon dioxide (CO₂) emissions generated during the ammonia production process and permanently stores the captured carbon underground through carbon sequestration technology. This process significantly reduces the greenhouse gas footprint of ammonia, a key component in nitrogen fertilizers used to grow corn and other major crops.
At full production capacity, CF Industries can manufacture up to 1.9 million tons of low-carbon ammonia per year, enough to meet the fertilizer needs of approximately 19 to 22 million acres of planted corn annually. This scale positions the company as a major enabler of agricultural decarbonization in North America and beyond.
By combining carbon capture with fertilizer production, CF Industries is advancing a model that allows farmers to lower emissions without sacrificing crop yields—a critical requirement for ensuring food security while meeting climate targets.
Strengthening Cooperative-Driven Sustainability
WinField United and its cooperative partners emphasized that the project aligns with their long-standing commitment to environmental stewardship and innovation in agriculture.
“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. “Together with CF Industries and our member-owners, we are driving innovation and growth for the future of agriculture.”
Barr noted that the cooperative system plays a crucial role in implementing best-in-class agronomic practices and scaling sustainability initiatives that benefit farmers nationwide.
“Our cooperative system has a commitment to environmental stewardship and leadership in low-carbon initiatives, applying best-in-class practices to benefit American farmers and advance agricultural sustainability,” he added.
A Blueprint for the Future of Low-Carbon Fuels
Beyond its immediate impact, the pilot program is designed to serve as a blueprint for future low-carbon agricultural and energy systems. If successful, the model could be expanded to additional crops, regions, and renewable fuel pathways, including sustainable aviation fuel (SAF) and hydrogen-based energy solutions.
The initiative also supports broader climate and energy policy goals, including reducing lifecycle emissions from transportation fuels, improving the competitiveness of U.S. biofuels in global markets, and strengthening the resilience of rural economies.
By integrating low-carbon fertilizer production, certified supply chain tracking, climate-smart farming practices, and renewable fuel manufacturing, CF Industries and POET are demonstrating how cross-industry collaboration can drive meaningful progress toward decarbonization.
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