Exxon, CF Industries, and EnLink Midstream will collaborate with the Government of Louisiana on a large-scale decarbonization project in the U.S. state. The partnership, announced by Gov. John Bel Edwards on Oct. 13, is described as a potential business prototype for industrial-scale carbon capture and sequestration (CCS) projects.
Following the largest-ever commercial agreement of this type, the three companies will capture CO2 emissions for the CF Industries’ Ascension Parish manufacturing site, transport the carbon through EnLink’s transportation network and store it permanently underground on an Exxon-owned property in Vermilion Parish.
“Today’s announcement of this unprecedented, large-scale, low-carbon partnership is a key milepost on Louisiana’s path toward a brighter future for our climate, our economy and our people,” Edwards said. “The collaboration and innovation to bring carbon capture and storage technology forward at this scale reaffirms our state’s ability to grow our economy without sacrificing our long-term emission-reduction goals to net zero by 2050.”
CF Industries, a global hydrogen and nitrogen products manufacturer, recently announced a $198.5 million plan to launch a carbon dehydration and compression unit at its ammonia production site in Donaldsonville.
The project’s start is scheduled for the beginning of 2025. The three companies estimate that the collaboration will allow them to capture and sequester as much as 2 million metric tons of carbon per year, or the equivalent of converting 700,000 gasoline-powered vehicles to EV’s.
CF Industries expects to market as much as 1.7 million metric tons of blue ammonia per year, as demand for this decarbonized energy source is expected to grow significantly.
ExxonMobil Low Carbon Solutions is looking to bring lower-emission technologies to market, targeting hard-to-abate industries in the U.S. and abroad.
EnLink has a system of over 4,000 miles of pipeline in Louisiana, offering a timely and cost-effective solution to carbon transportation.