ExxonMobil has struck an agreement with CF Industries to capture and store up to 500,000 metric tons of carbon dioxide from CF’s facilities in Yazoo City, Mississipi.
Dan Ammann, president of ExxonMobil Low Carbon Solutions, said, “We’re serious about expanding carbon capture – a safe, proven solution for hard-to-decarbonize industries. Our agreement with CF Industries is the latest example of how we can help industrial customers make significant progress, quickly and economically.”
The project will capture up to 50% of the site’s carbon emissions and is expected to begin operations in 2028.
“We’ve set ambitious goals to reduce our emissions from our operations, and CCS will play a key role in getting us there. We are really pleased to expand our relationship with ExxonMobil for our second CCS project together as their leading expertise helps accelerate our decarbonization journey,” said Tony Will, president and CEO of CF Industries.
CF Industries will be investing $100 million in the project and expects it will be able to qualify for up to $85 per ton of captured CO2 under the 45Q tax credit mechanism.
This is the fourth major carbon capture agreement Exxon has signed and the oil giant is looking to build on the 5.5 million tons of CO2 it has already agreed to capture, transport and store.
In September 2022 the two companies announced another project involving carbon capture, with plans for a $200 million investment in building a capture unit at CF’s nitrogen plant located just south of Baton Rouge. Exxon, partnering with pipeline company EnLink is set to transport the captured CO2 to Exxon’s geological storage site in Western Louisiana. The project has a target of becoming operational by 2025.
Carbon capture appears to be a growing segment for the oil company which acquired Denbury, the largest U.S. company in the space, for $4.9 billion in November 2023. Exxon also applied for CO2 storage approval in the English Channel last week.
Read more: Exxon Completes Acquisition Of Carbon Capture Leader Denbury For $4.9 Billion
