CF Industries Eyes 400,000-Ton Urea Expansion at Sarnia Plant by 2027

For supply chain and logistics planners, CF Industries' proposed 400,000-ton-per-year urea liquor expansion at Courtright is more than a local industrial story—it is a forward indicator of where nitrogen and DEF capacity may be headed in the Great Lakes region. If the final capital decision lands in 2027, buyers, carriers, and suppliers will need to map sourcing, rail/truck flows, and inventory positions for a market that has seen tightness around emissions-control fluids. The project also signals near-term demand for construction, fabrication, and industrial services across Lambton County.

CF Industries has opened a potential new chapter at its Courtright nitrogen complex near Sarnia, Ontario, announcing an engineering and design study agreement for a new urea liquor upgrade plant. The company said in its recent earnings release, as reported by local media on August 15, 2026, that the project would add more than 400,000 tons per year of capacity, with a final capital decision expected in 2027. The existing 283-hectare (700-acre) site, south of Sarnia in St. Clair Township, currently has capacity to produce up to one million tons annually of nitrogen products, including ammonia and urea ammonium nitrate. Urea liquor produced there is an ingredient in diesel exhaust fluid, a product used to cut emissions from diesel engines.

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Adding more than 400,000 tons per year of urea liquor capacity at Courtright would give CF Industries greater flexibility to serve both agricultural and industrial buyers, improving the product mix from its existing ammonia and UAN operations.

Local economic development voices framed the study as a signal of operational stability and long-term intent. Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership, called the potential capacity addition 'a rather significant increase' and a positive potential development for the community. Jeff Agar, mayor of St. Clair Township, said the project would likely be 'a big project, if it gets going,' with local jobs in construction, fabrication shops and industry suppliers. The township already hosts a refinery and several chemical production facilities, reinforcing the Sarnia-Lambton energy and chemical complex's role in Ontario's industrial economy.

The project's product focus deserves attention. Urea liquor is not simply fertilizer; it is a precursor in the production of diesel exhaust fluid, which is consumed in selective catalytic reduction systems on heavy-duty trucks, agricultural equipment and some off-road diesel engines. With tightened nitrogen oxide emissions standards across North America, DEF has become a steady demand market. Adding more than 400,000 tons per year of urea liquor capacity at Courtright would give CF Industries greater flexibility to serve both agricultural and industrial buyers, improving the product mix from its existing ammonia and UAN operations. The timing of a 2027 final decision suggests the company is aligning with long-term demand rather than reacting to a near-term shortage.

For supply chains, the announcement matters because incremental nitrogen and DEF ingredient capacity is not built quickly. A final capital decision in 2027 implies engineering, permitting, procurement, construction and commissioning would stretch into the late 2020s or early 2030s. In the interim, distributors, fleet operators and agricultural buyers will be watching whether Canadian and U.S. DEF markets remain adequately supplied. The study could also trigger pre-FID contracts for local fabrication, industrial services and logistics providers once the project is approved. However, the company has not yet committed to capital, and the announcement is an early-stage engineering and design study, not a guaranteed build.