Denbury Inc. has made a preliminary agreement to transport and store CO2 captured from a green ammonia project in Geismar, Louisiana.
Nutrien Ltd.’s PCS Nitrogen Fertilizer LP is looking at the capacity of the project to expand by 1.2 million metric tons per year using carbon capture utilization and storage (CCUS) to decrease CO2 emissions. The increased ammonia capacity will aid agriculture, industrial and emerging energy markets.
Denbury Carbon Solutions, part of Denbury Inc., plans to use carbon capture tech to transfer as much as 1.8 mmty of carbon from the new space.
“CCUS-enabled clean ammonia will be an important source of energy in a lower-carbon future, and we are honored by the confidence and trust that Nutrien has continued to place in Denbury to provide this important service,” said Denbury CEO Chris Kendall.
A carbon capture utilization and storage expert in exploration and production, Denbury has long employed carbon in oil recovery operations. In the fall of 2021, the company partnered with Mitsui & Co. Ltd. to assess Gulf Coast carbon-negative oil initiatives.
The final investment decision on the Louisiana project will be taken in 2023, and if approved production will likely start in 2027.
Nutrien would pay an undisclosed amount to Denbury over 12 years (with as much as two five-year extensions) to transport and store carbon underground.
“Nutrien is optimally positioned to supply global emerging clean ammonia markets and grow a pathway for a decarbonized supply chain,” said Nutrien’s Raef Sully, CEO of Nitrogen and Phosphate.
Back in 2013, Denbury started transporting carbon captured from Nutrient’s Geismar facilities. Almost 3 mmty of carbon have been stored and over 2 million bbl of carbon-negative oil have been produced as part of this project in the past nine years.
In total, Denbury reported it has carbon transport and storage agreements for about 7 mmty, and additional agreements for underground CCUS facilities that could reach over 1.4 billion metric tons.
Denbury is reportedly moving over 14 mmty of carbon across the U.S., while Nutrien produces and distributes roughly 27 mmty of nitrogen, phosphate and potash products globally.