Wedoany.com Report-Jul. 20, CF Industries Holdings, Inc., based in Deerfield, Illinois, has initiated operations at its new carbon dioxide (CO2) dehydration and compression facility at the Donaldsonville Complex in Louisiana. The facility enables the capture and permanent geological sequestration of up to 2 million metric tons of CO2 annually, preventing its release into the atmosphere. ExxonMobil, the company’s partner in this carbon capture and sequestration (CCS) project, handles the transportation and storage of the captured CO2.

Currently, ExxonMobil stores the CO2 from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Once necessary permits are obtained, ExxonMobil plans to transition to dedicated permanent storage, starting with its Rose CCS project along the Gulf Coast. The U.S. Environmental Protection Agency issued a draft Class VI permit for the Rose project in July, with final permits anticipated later this year.

Tony Will, president and chief executive officer of CF Industries Holdings, Inc., stated: “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. 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 Donaldsonville CCS project is expected to enable CF Industries to produce approximately 1.9 million tons of low-carbon ammonia annually. This initiative supports the company’s sustainability goals by significantly reducing emissions associated with ammonia production. Additionally, CF Industries anticipates qualifying for tax credits under Section 45Q of the Internal Revenue Code, which provides financial incentives for each metric ton of CO2 sequestered.

The partnership with ExxonMobil strengthens the project’s impact by leveraging ExxonMobil’s expertise in CO2 transportation and storage. The Rose CCS project is part of ExxonMobil’s broader efforts to develop an integrated CCS network along the Gulf Coast, enhancing the region’s capacity for sustainable industrial solutions.

This facility marks a significant step in advancing low-carbon ammonia production, meeting growing demand for sustainable products in agriculture and other industries. By capturing and storing CO2, CF Industries contributes to environmental sustainability while maintaining operational efficiency at its Donaldsonville Complex. The project aligns with industry efforts to adopt cleaner technologies, supporting both economic and environmental objectives in Louisiana and beyond.