CF Industries, a leading global manufacturer of hydrogen and nitrogen products, has entered into the largest-of-its-kind commercial agreement with ExxonMobil to capture and permanently store up to 2 million t of CO2 emissions annually from its manufacturing complex in Louisiana. Start-up for the project is scheduled for early 2025 and supports Louisiana’s objective of net-zero CO2 emissions by 2050.
As previously announced, CF Industries is investing US$200 million to build a CO2 dehydration and compression unit at its Donaldsonville, Louisiana, facility to enable captured CO2 to be transported and stored. ExxonMobil will then transport and permanently store the captured CO2 in secure geologic storage it owns in Vermilion Parish. As part of the project, ExxonMobil has signed an agreement with EnLink Midstream to use EnLink’s transportation network to deliver CO2 to permanent geologic storage. The 2 million t of emissions captured annually will be equivalent to replacing approximately 700 000 gasoline-powered cars with electric vehicles.
“CF Industries is pleased to partner with ExxonMobil through this definitive CO2 offtake agreement, accelerating our decarbonisation journey and supporting Louisiana’s and the country’s climate goals,” said Tony Will, President and CEO, CF Industries Holdings, Inc. “This agreement also ensures that we remain at the forefront of the developing clean energy economy. As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia. This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonisation goals.”
“This landmark project represents large-scale, real-world progress on the journey to decarbonise the global economy,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we’re ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We’re encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the Inflation Reduction Act.”
“EnLink has a system of over 4000 miles of pipeline already in the ground in Louisiana,” said Jesse Arenivas, CEO of EnLink. “Utilising this extensive network enables us to provide the most timely and cost-effective solution to CO2 transportation, with a significantly lower environmental impact. Because of this, EnLink is uniquely positioned to be the CO2 transportation provider of choice in Louisiana's Mississippi River corridor, which is a hub of industrial activity that is important to our economy. We look forward to working with ExxonMobil to help CF Industries and the State of Louisiana reach their decarbonisation goals.”