How CF Industries and POET Partner to Build America's Low-Carbon Ethanol Future

In a move that underscores the growing convergence between agricultural inputs and renewable energy, CF Industries Holdings, Inc. and POET LLC—the world’s largest biofuel producer—have launched an innovative partnership to establish a certified low-carbon fertilizer supply chain. This strategic collaboration, supported by major U.S. agriculture cooperatives, marks a significant turning point in decarbonizing both the farming sector and the biofuel industry.

Strategic Partnership Tackles Emissions Across the Value Chain

The initiative brings together CF Industries, a leading fertilizer manufacturer, with POET and four prominent agricultural cooperatives: WinField United, NuWay-K&H, New Cooperative, and Farmer’s Cooperative. Their shared objective is to create a transparent, traceable system for low-carbon nitrogen fertilizer that starts at the production facility and extends through distribution channels to farmers across Iowa, Minnesota, Missouri, and Nebraska.

What sets this partnership apart is its end-to-end focus. Rather than addressing emissions in isolation, the collaborative approach tracks environmental impact across the entire agricultural value chain—from the nitrogen fertilizer applied by growers to the final ethanol output destined for fuel use and export markets. This comprehensive model reflects a mature understanding of how carbon reduction requires coordinated efforts across multiple stakeholders.

Innovative Technology: From Low-Carbon Nitrogen to Clean Fuel

At the heart of this operation lies CF Industries’ Donaldsonville Complex, which employs advanced CO2 emission capture and storage technology to produce the low-carbon nitrogen fertilizer. The captured carbon is permanently sequestered, meaning the environmental benefit is built into the product from day one. Once distributed through retail channels, this certified nitrogen enables farmers to cultivate corn with demonstrably lower carbon intensity.

POET then transforms this low-carbon corn into cleaner ethanol at its Midwest bioprocessing facilities, with the partnership projected to generate 5–6 million gallons of reduced-intensity biofuel. This closed-loop approach ensures that environmental gains accumulate throughout production, rather than being diluted by downstream processes.

First Project Results Show Measurable Environmental Gains

The collaboration reached a critical milestone in late 2025 when it completed its first full-scale low-carbon ammonia distribution and field application cycle. This achievement moves the partnership beyond the pilot phase and into practical, commercially viable operations. Early results demonstrate that the approach delivers genuine emissions reductions across the entire chain—improved farmer economics through more sustainable practices, cleaner ethanol for consumers, and progress toward federal low-carbon fuel mandates.

By validating that low-carbon fertilizer can be produced, distributed, and applied at scale without economic penalties, this project opens a blueprint for similar initiatives across the agricultural sector.

Market Position and Investment Outlook

CF Industries’ stock has gained 1.6% over the past year, underperforming the Basic Materials industry’s 13.9% rise. Nevertheless, the company’s low-carbon innovation positioning suggests longer-term competitive advantages in an increasingly carbon-conscious market. Within the industry, peer companies like LSB Industries have shown stronger momentum, with shares up 17.5% over the past year, while Intrepid Potash and Novozymes have also delivered solid gains.

The success of CF and POET’s partnership sends a clear signal: companies that can merge operational excellence with environmental responsibility—becoming true partners in building sustainable infrastructure—will likely attract both investor confidence and policy support as regulatory frameworks for low-carbon fuels continue to tighten.