CF Industries Kicks Off Louisiana CCS Project with Exxon

CF Industries has started CO2 capture and storage at its Donaldsonville Complex in Louisiana, working with ExxonMobil to sequester up to 2 million metric tons of carbon dioxide annually.

(P&GJ) — CF Industries has started operating a new carbon dioxide dehydration and compression unit at its Donaldsonville Complex in Louisiana, marking a major step in the company’s carbon capture and storage (CCS) efforts.

The facility is designed to process up to 2 million metric tons of CO2 annually, diverting emissions that would have otherwise entered the atmosphere. ExxonMobil, CF’s CCS partner, is responsible for transporting and storing the captured CO2.

Currently, ExxonMobil is using enhanced oil recovery to permanently store the CO2, but the company plans to shift to dedicated geological storage once regulatory approvals are secured. ExxonMobil’s Rose CCS project, one of several permanent storage sites it is developing along the Gulf Coast, received a draft Class VI permit from the U.S. Environmental Protection Agency in July. Final permits are expected later this year.

“The start-up of the Donaldsonville carbon dioxide dehydration and compression facility and initiation of sequestration by ExxonMobil is a historic milestone in our Company’s decarbonization journey,” said Tony Will, president and CEO of CF Industries. “By starting permanent sequestration now, we reduce our emissions, accelerate the availability of low-carbon ammonia for our customers and begin generating valuable 45Q tax credits.”

CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia annually through the Donaldsonville CCS project. The company also anticipates qualifying for federal tax credits under Section 45Q, which provides incentives for each metric ton of CO2 stored.