The disruption to global fertilizer supplies caused by the Iran war and the wider Gulf crisis is prompting the United States to accelerate efforts to expand domestic fertilizer production and reduce its dependence on overseas supplies. Against this backdrop, two major fertilizer projects worth a combined $4.15 billion have been announced in Louisiana.
CF Industries, the largest U.S. nitrogen fertilizer producer, has broken ground on its $3.7 billion Blue Point ammonia project, while farmer-owned cooperative CHS and Morocco’s OCP North America have announced plans for a $450 million phosphate fertilizer production facility.
The projects come as geopolitical tensions and disruptions to shipping routes have heightened concerns over the reliability and cost of global fertilizer supplies. The CHS-OCP project, in particular, is designed to reduce U.S. exposure to international shipping bottlenecks, including risks associated with the Strait of Hormuz.
Located along the Mississippi River in Louisiana, the proposed CHS-OCP facility will produce more than 1 million metric tonnes of phosphate-based fertilizer annually. The companies expect the plant to reduce U.S. reliance on imported phosphate fertilizer by at least 48%.
Agriculture Secretary Brooke Rollins has made expanding domestic fertilizer production a key priority, arguing that the country's dependence on foreign supplies leaves American farmers vulnerable to geopolitical disruptions and price shocks.
“America imports currently roughly 50% of the 20 million tons of fertilizer that we use each year,” Rollins said at the Blue Point groundbreaking. She described the project as a major step toward “American fertilizer independence.”
The Blue Point facility is expected to produce 1.4 million metric tonnes of low-carbon ammonia annually. Once operational, it is projected to be the world’s largest ammonia plant by nameplate capacity. Construction is expected to create about 3,900 jobs over four years, with more than 100 permanent manufacturing and related positions.
The Louisiana phosphate project is the first facility of its kind planned in the United States since 1984. OCP will supply phosphoric acid from Morocco, while CHS and OCP North America will distribute finished fertilizers through their respective networks.
The plant’s location on the Mississippi River will allow fertilizer to be transported by barge and then distributed by rail and truck to major farming regions, reducing dependence on vulnerable overseas shipping routes.
Construction of the CHS-OCP facility could begin by the end of 2026, with production potentially starting in late 2028, subject to project and funding approvals.