LSB Industries Inc. and Lapis Energy LP, Dallas, on Feb. 21 announced that they have jointly filed a permit application with the US EPA to construct a Class VI well as part of their project to capture and permanently sequester CO2 at LSB’s El Dorado, Ark., facility.
Class VI wells are used to inject CO2 into deep rock formations. The long-term underground storage – known as geological sequestration – reduces CO2 emissions.
LSB and Lapis entered into an agreement last April to develop the project at the El Dorado plant (GM April 29, 2022). The sequestration of some 450,000 mt of CO2 annually will enable LSB to produce over 375,000 mt/y of blue ammonia.
Upon approval of the Class VI permit, Lapis will begin construction on the infrastructure required to capture and sequester CO2 at El Dorado. The project is targeting the Houston and the Cotton Valley geological formations to permanently store CO2.
Operations are targeted to start in 2025, and once in operation, LSB expects the sequestered CO2to reduce the company’s direct greenhouse gas emissions by approximately 25% from current levels.
The permanently sequestered CO2 generated from the facility’s ammonia production is expected to qualify for federal tax credits under IR Code Section 45Q, which are currently up to $85/mt of CO2 captured beginning in 2026.