Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — ESG Presentation (October 2020)
16 slides from Cf Industries's sustainability presentation, Oct 29, 2020
Slide 1: CF Commitment to Clean Energy Economy
1 CF Commitment to Clean Energy Economy Clean Fuels for a Sustainable World October 29, 2020 NYSE: CF
Slide 2: Safe harbor statement
2 Safe harbor s tatement All statements in this communication, other than those relating to historical facts, are forward - looking statements, including, but not limited to, statements as to strategic plans and management’s expectations with respect to the production of green and low - carbon ammon
Slide 3: Executive summary: commitment to clean energy economy
3 Executive summary : c ommitment to clean energy economy • Hydrogen has emerged as a leading clean energy source to help the world achieve net - zero carbon emissions by 2050 • Ammonia is one of the most efficient ways to transport and store hydrogen and is also a fuel in its own right • CF is the
Slide 4: Investment thesis: low-carbon ammonia
4 Investment thesis: l ow - carbon ammonia • The global focus on climate change and GHG emissions has created a push to decarbonize economies. To accomplish this, the world needs a clean energy/fuel source • Renewable energy (solar and wind) are growing rapidly, supported by governmental incentives
Slide 5: Potential long-term demand for hydrogen
5 Source: IEA, Wood Mackenzie, Bernstein: Hydrogen Highway 2020: Ready for Prime Time Deloitte: Australian and Global Hydrogen Demand Growth Scenario Analysis, prepared for COAG Energy Council – National Hydrogen Strategy Ta skforce, November 2019 (1) Deloitte (DT) Scenarios: Energy of the Future –
Slide 6: Low-carbon ammonia: the key enabler for clean hydrogen energy
6 Low - carbon ammonia : the key e nabler f or c lean h ydrogen e nergy • 180 million tons of ammonia safely produced, stored, transported and consumed globally • Ammonia’s energy density is ~1.5x that of liquid hydrogen, ~3.0x that of gaseous hydrogen, and ~14.0x that of lithium ion batteries, allo
Slide 7: CF has the leading asset base
7 CF has the leading asset base Ideally positioned to lead h ydrogen economy by leveraging existing network • 10 million tons produced annually • 9 manufacturing complexes • 23 distribution facilities • 1.5 million tons of storage • 5 deep water docks able to load ocean - going vessels • Additional
Slide 8: Ammonia as a fuel
8 Ammonia as a fuel CF has numerous initiatives underway in support of clean energy Developing numerous carbon capture and sequestration (CCS) projects near CF production facilities In discussions for supplying ammonia as marine fuel and for global power generation Evaluating certified CO 2 abatemen
Slide 9: Market value of hydrogen in low-carbon ammonia
9 Market value of hydrogen in low - carbon ammonia (1) Estimate provided by S&P Global Platts , retail price of hydrogen in California Value of hydrogen (1) Hydrogen content in ammonia Market v alue of hydrogen in low - carbon ammonia ~$12 kg 160 kg/ st ~$2,000 per ton
Slide 10: CF's long-term growth trajectory dramatically enhanced with clean energy
10 C F $/st 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 • Production of blue ammonia achieved through carbon capture and sequestration or certified carbon abatement projects expected to have similar production costs as conventional ammonia • U.S . tax credits expected to offset CF’s increm
Slide 11: Clean Fuel: The growth platform for long-term shareholder value
11 Clean Fuel: The growth platform for long - term s hareholder v alue • Clean energy production significantly enhances CF’s long - term growth trajectory • Ability to achieve higher margins over time by capturing clean energy value of ammonia rather than the nutrient value of ammonia • Projected de
Slide 12: ESG priorities and goals
12 ESG priorities and goals
Slide 13: Clean energy enhances comprehensive ESG priorities
13 Clean e nergy enhances c omprehensive ESG p riorities • We have identified 16 ESG issues that are material to our business based on potential for material financial or reputational impact, alignment with our mission, values and strategy, relevance across our industry, importance to internal and e
Slide 14: ESG material issues and goals: emissions, climate, water
14 Dimension Material Issue Goal UN Sustainable Development Goals GHG EMISSIONS; ENERGY MANAGEMENT; CLIMATE CHANGE Reduce carbon emissions • During 2021, develop and prioritize a list of viable GHG reduction capital projects • Reduce total CO 2 equivalent emissions by 25% per ton of product by 2030
Slide 15: ESG material issues and goals: safety, diversity and inclusion
15 Dimension Material Issue Goal UN Sustainable Development Goals WORKFORCE HEALTH & SAFETY Strengthen and improve behavioral safety practices that support the commitment to safety excellence • At least 95% of the aggregated safety grades of all employees at manufacturing and distribution sites must
Slide 16: ESG material issues and goals: food security, stewardship, ethics
16 Dimension Material Issue Goal UN Sustainable Development Goals FOOD SECURITY; ENVIRONMENTAL COMPLIANCE Be a driving force to increase adoption of enhanced conservation practices and nutrient management practices that promote sustainable agriculture • Reach 90,000 farmers with 4R Plus program by 2
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