The company is evaluating a site in Louisiana for the plant, which could produce 1.2 million metric tonnes a year and capture at least 90% of carbon emissions, Nutrien said in a statement.

Nutrien signed a letter of intent with Mitsubishi Corporation for offtake of up to 40% of the expected production to deliver to the Asian fuel market, including Japan, the statement said.

Another fertilizer producer, CF Industries Holdings, recently announced plans with Mitsui & Co to build a roughly $2 billion U.S. plant to produce low-carbon ammonia for fuel.

(Reporting by Tom Polansek; Editing by Aurora Ellis)