CF Industries : Clean Energy Commitment Briefing Call

CF Commitment to Clean Energy Economy

Clean Fuels for a Sustainable World

October 29, 2020

NYSE: CF

Safe harbor statement

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 ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a hydrogen economy, greenhouse gas reduction targets, projected capital expenditures, and other items described in this communication. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" or "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the failure of cost competitive global renewable energy capacity to increase significantly; realization of technological improvements required to increase the efficiency and lower the costs of production of green and low-carbon ammonia; development and growth of end market demand and applications for low-carbon hydrogen and ammonia; government regulation, incentives, and initiatives; cost overruns; performance of third parties; permitting matters; and other unforeseen difficulties. Important factors that could cause actual results more generally to differ materially from our expectations are discussed in our filings with the Securities and Exchange Commission, including our most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the CF Industries web site.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Executive summary: commitment 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

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CF is the world's largest producer of ammonia and is uniquely positioned, with an unparalleled asset base and technical knowledge, to serve this anticipated demand

Company is announcing commitment to decarbonize the world's largest ammonia production network,

positioning CF at forefront of clean hydrogen supply

New green ammonia project announced at Donaldsonville Nitrogen Complex today expected to fit within normal $400-450 million annual capex budget

Establishing carbon emissions reduction targets of:

• • 25% reduction by 2030
  • net-zerocarbon emissions by 2050
• Clear pathways to growth in clean energy:
• • Green ammonia production - ammonia produced through a carbon-free electrolysis process using renewable electricity
  • • Renewable electricity accounts for approximately 25% of CF's total system consumption
  • Low-carbonammonia - ammonia produced by conventional processes but with CO2 removed through carbon capture and sequestration (CCS) and other certified carbon abatement projects
• Board has established a new Environmental Sustainability and Community Committee and is aligning executive compensation directly to ESG objectives

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Investment thesis: low-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
  • However, renewable energy is not consistently available and somewhat unpredictable creating the need to have a clean energy source that can be stored and transported
• Hydrogen has emerged as a clean energy source
• • Hydrogen can be produced with zero carbon emissions through the electrolysis of water, using renewable energy
  • However, hydrogen is difficult to store and transport given its combustible nature and extremely low boiling point temperature (-423 F)
• Ammonia (NH3) has a much higher boiling point (-28 F), is an efficient storage and transport medium for hydrogen
• • Significantly higher energy density than hydrogen and considerably more efficient than lithium ion batteries
  • Infrastructure to store and transport ammonia already exists with a presence in 120 seaports globally and seaborne trade of ~20 million tons annually
  • Ammonia can be used directly as a fuel, in addition to serving as a storage and transport medium for hydrogen
• The solution: produce low-carbon ammonia for use as a fuel and a hydrogen storage and transportation medium to assist decarbonizing economies
• • Green ammonia is produced through electrolysis of water to produce carbon free hydrogen and synthesis to ammonia
  • Low-carbonammonia can be produced by either carbon capture and sequestration where process-gas CO2 is removed and injected into geological storage, or through utilizing certified carbon abatement credits to offset produced CO2
    The result: exponential growth in low-carbon ammonia

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