CF Industries Holdings Inc. on Oct. 12 said that it has entered into the largest-of-its-kind commercial agreement with ExxonMobil to capture and permanently store up to 2 million mt of CO2 emissions annually from its Donaldsonville, La., manufacturing facility. Start-up for the project is scheduled for early 2025.
“CF Industries is pleased to partner with ExxonMobil through this definitive CO2 offtake agreement, accelerating our decarbonization journey and supporting Louisiana’s and the country’s climate goals,” said Tony Will, CF President and CEO.
“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 decarbonization goals,” he continued.
CF expects to market up to 1.7 million mt/y of blue ammonia.
As previously announced, CF is investing $200 million to build a CO2 dehydration and compression unit at the Donaldsonville facility to enable captured CO2 to be transported and stored (GM Aug. 12, p. 29). ExxonMobil will then transport and permanently store the captured CO2 in secure geologic storage it owns in Vermilion Parish. ExxonMobil plans to develop a 125,000-acre CO2 storage location in the parish.
As part of the project, ExxonMobil has signed an agreement with EnLink Midstream to use EnLink’s transportation network to deliver CO2 to storage. EnLink already has a system of over 4,000 miles of pipeline in the state.
The parties said the captured emissions will be equivalent to replacing approximately 700,000 gasoline-powered cars with electric vehicles.