CF Industries has initiated operations at its newly established carbon dioxide (CO₂) dehydration and compression unit within the Donaldsonville Complex in Louisiana, US.
This development aims to transport and permanently sequester up to two million tonnes per annum (mtpa) of CO₂.
The facility’s operation is a collaborative effort with ExxonMobil, which will oversee the transportation and permanent geological storage of the captured CO₂.
ExxonMobil currently utilises an interim solution, employing enhanced oil recovery methods to store CO₂ from the Donaldsonville Complex in permanent geological formations.
The company is in the process of securing permits for a transition to dedicated permanent storage solutions, beginning with the Rose carbon capture and sequestration (CCS) project.
ExxonMobil’s Rose project is among several dedicated permanent storage sites being developed along the Gulf Coast and is integral to expanding the company’s integrated CCS network.
The US Environmental Protection Agency issued a draft Class VI permit for the Rose project this month, with the anticipation of final permits later in the year.
This CCS initiative at the Donaldsonville Complex is expected to enable CF Industries to produce approximately 1.9mtpa of low-carbon ammonia.
Furthermore, the company anticipates eligibility for tax credits under Section 45Q of the Internal Revenue Code, which incentivises CO₂ storage with a credit for each metric tonne sequestered.
CF Industries Holdings president and CEO Tony Will said: “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 decarbonisation journey.
“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.”
The CCS partnership arrangement between CF Industries and ExxonMobil was established in July 2024.
The partnership includes CF Industries’ Yazoo City facility, which manufactures nitrogen products for agricultural fertilisers and other essential goods. The collaboration is projected to reduce CO₂ emissions by up to 50% at the Yazoo City site.
