Hot on the heels of securing EPA approval for its Stratos direct air capture plant’s CO2 storage wells, 1PointFive has signed a 25-year agreement to store about 2.3 million metric tons of carbon dioxide (CO2) each year. The CO2 will come from CF Industries‘ new $4 billion Bluepoint ammonia plant in Ascension Parish, Louisiana, which is being developed in partnership with JERA Co. and Mitsui & Co.
“CF Industries’ and its partners confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner,” said Jeff Alvarez, President of 1PointFive Sequestration. “By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth.”
Under the deal, CO2 captured from the plant will be transported to and stored at 1PointFive’s Pelican Sequestration Hub in Louisiana. This facility, which has officially moved into development, will store CO2 deep underground, over a mile beneath the surface.
A Boost for Low-Carbon Manufacturing
The project highlights how carbon capture and storage (CCS) is playing a key role in reducing emissions from industries that are difficult to decarbonize. Storing carbon emissions allows companies like CF Industries to produce lower-carbon ammonia, a chemical widely used in fertilizer and energy production.
“CF Industries and its partners are proud to have 1PointFive and Occidental provide carbon dioxide transport and sequestration for our Bluepoint low-carbon ammonia production facility in Louisiana,” said Tony Will, president and CEO of CF Industries Holdings, Inc. “Having a proven carbon capture and sequestration partner was essential to enabling our industry-leading project and the manufacturing jobs it will create.”
CF Industries Expanding It’s Carbon Partnerships
The agreement is now part of a growing list of partnerships for storing the CO2 emissions CF Industries generates. In mid-2024 the company partnered with ExxonMobil to capture and store up to 500,000 metric tons of CO2 annually from CF’s Yazoo City, Mississippi plant, starting in 2028.
The project aimed to cut the site’s emissions by 50%, with CF investing $100 million and benefiting from 45Q tax credits which are currently under threat of being axed.
The agreement marked Exxon’s fourth major carbon capture deal as it expanded its low-carbon solutions portfolio. Exxon acquired Denbury—which had developed a CO2 pipeline network of over 1,300 miles—for $4.9 billion and continues pursuing CO2 storage globally though it has recently suffered setbacks in the UK and Australia.
Read more: Occidental And 1PointFive Secure EPA Class VI Permits For Stratos DAC In Texas
