CF Industries Commences Operations at Its CO₂ Compression Facility, Louisiana
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CF Industries has commenced operations at its carbon dioxide (CO₂) dehydration and compression facility at its Donaldsonville Complex in Louisiana.
The facility will enable the transportation and permanent geological sequestration of up to 2 million metric tons of CO₂ annually that would otherwise have been emitted into the atmosphere. ExxonMobil, the company’s carbon capture and sequestration (CCS) partner for this project, will be transporting and permanently storing the CO₂.
“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, president and chief executive officer, CF Industries Holdings.
“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,” added Will.
On an interim basis, ExxonMobil is storing CO₂ from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Upon receiving its applicable permits, ExxonMobil plans to transition to dedicated permanent storage, starting with its Rose CCS project. Rose is one of many dedicated permanent storage sites ExxonMobil is developing along the Gulf Coast to expand its integrated CCS network. The U.S. Environmental Protection Agency issued a draft Class VI permit for Rose in July, and final permits are expected later this year.
As a result of its Donaldsonville CCS project, CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia on an annual basis. CF Industries also expects to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO₂ stored.
At CF Industries, their mission is to provide clean energy to feed and fuel the world sustainably. With its employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, they are on a path to decarbonize its ammonia production network — the world’s largest — to enable low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities. Their manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation, and distribution network in North America, and logistics capabilities enabling a global reach underpin their strategy to leverage its unique capabilities to accelerate the world’s transition to clean energy.
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