CF Industries has officially launched operations at its new carbon dioxide dehydration and compression facility at the Donaldsonville Complex in Louisiana. This milestone project enables the capture, transport, and long-term underground storage of up to two million metric tons of CO2 annually
ExxonMobil Leads Geological Storage
The CO2 will be handled by ExxonMobil, CF Industries’ strategic partner for this carbon capture and sequestration (CCS) initiative. The two companies are also working together on capturing and storing up to 500,000 metric tons of carbon dioxide from CF’s facilities in Yazoo City, Mississipi.
“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, CF Industries’ President and CEO. “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.”
ExxonMobil is currently utilizing enhanced oil recovery (EOR) as a temporary storage method until full permitting is granted for dedicated geological storage. The transition is expected to begin with the Rose CCS project, which recently received a draft Class VI permit from the U.S. Environmental Protection Agency. Final permits are anticipated later this year.
CF Industries Drive Toward Low-Carbon Ammonia with Carbon Capture
With this infrastructure in place, CF Industries is set to produce approximately 1.9 million tons of low-carbon ammonia per year. This output supports the company’s broader sustainability goals while also positioning it to benefit from federal incentives under Section 45Q of the Internal Revenue Code, which offers tax credits for every metric ton of CO2 securely stored underground.
This move underscores CF Industries’ commitment to decarbonizing ammonia production and solidifies its position in the evolving low-carbon energy economy.
In April the company also signed a 25-year agreement to store about 2.3 million metric tons of CO2 each year with direct air capture developer 1PointFive. The CO2 will come from CF Industries‘ $4 billion Bluepoint ammonia plant in Ascension Parish, Louisiana, which is being developed in partnership with JERA Co. and Mitsui & Co.
Read more: 1PointFive Inks 25-Year Carbon Storage Deal With CF Industries
