CF Industries Holdings Inc. announced on July 25 that it is moving forward with a carbon capture and sequestration (CCS) project at its Yazoo City, Miss., complex that is expected to reduce CO2 emissions from the facility by up to 500,000 mt/y.
As part of the project, CF has signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of the CO2. Sequestration is expected to start in 2028.
CF said it will invest approximately $100 million to build a CO2 dehydration and compression unit at the complex. Once sequestration by ExxonMobil has commenced, CF expects the project to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 sequestered.
“We are pleased to advance another significant decarbonization project that will keep CF Industries at the forefront of low-carbon ammonia production while also helping us achieve our 2030 emissions intensity reduction goal,” said Tony Will, CF President and CEO. “This decarbonization project also will increase the availability of nitrogen products with a lower-carbon intensity for customers focused on reducing the carbon footprint of their businesses.”
Once sequestration has begun, CF said the Yazoo City complex will be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites. Most of the ammonia produced at Yazoo City is upgraded into nitrogen fertilizers such as UAN and ammonium nitrate, or upgraded into diesel exhaust fluid to reduce NOx emissions from diesel trucks.
The Yazoo City project is CF’s second major decarbonization project leveraging CCS technologies, as well as its second CCS project with ExxonMobil. The companies are progressing a CCS project at CF’s Donaldsonville, La., facility that will sequester up to 2 million mt/y of CO2. Sequestration for the Donaldsonville project is expected to begin in 2025.