CF Industries has announced the successful start-up of its CO2 dehydration and compression unit at the Donaldsonville Complex in Louisiana, marking a significant step towards decarbonization.
In a pivotal move towards sustainable industrial practices, CF Industries Holdings today confirmed the operational launch of its state-of-the-art carbon dioxide (CO2) dehydration and compression facility at its sprawling Donaldsonville Complex in Louisiana. This critical infrastructure is designed to facilitate the transportation and permanent geological sequestration of a substantial volume of CO2 – up to 2 million metric tons annually – that would otherwise be released into the atmosphere. The project underscores a significant collaboration with ExxonMobil, the designated carbon capture and sequestration (CCS) partner, responsible for the long-term storage of the captured CO2.
Tony Will, President and CEO of CF Industries Holdings, Inc., lauded the achievement, emphasizing its immediate and long-term benefits. "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," Will stated. This initiative is not merely an environmental commitment but also a strategic business decision, positioning CF Industries at the forefront of the low-carbon economy.
Initially, ExxonMobil will utilize enhanced oil recovery techniques for the interim storage of CO2 from the Donaldsonville Complex within permanent geologic sites. Looking ahead, ExxonMobil is poised to transition to dedicated permanent storage solutions, with its Rose CCS project earmarked as the primary destination once the necessary permits are secured. The Rose project is a cornerstone of ExxonMobil's broader strategy to develop an extensive integrated CCS network along the Gulf Coast, featuring multiple dedicated permanent storage sites. The U.S. Environmental Protection Agency (EPA) issued a draft Class VI permit for the Rose project in July, with final permits anticipated later this year, signaling regulatory progress for this vital infrastructure.
The successful commissioning of the Donaldsonville CO2 dehydration and compression facility and the commencement of sequestration by ExxonMobil represents a "historic milestone" in CF Industries’ ongoing decarbonization journey, as reiterated by Will. This project is expected to enable CF Industries to produce approximately 1.9 million tons of low-carbon ammonia annually, a product increasingly sought after by industries aiming to reduce their carbon footprint. Furthermore, this endeavor is set to qualify CF Industries for significant tax credits under Section 45Q of the Internal Revenue Code, which provides a credit for each metric ton of CO2 stored, offering a financial incentive that supports the environmental objectives. This synergistic approach of environmental stewardship and economic foresight positions CF Industries as a leader in the evolving landscape of sustainable industrial production.
