CF Industries signs major carbon dioxide storage deal with Exxon Mobil

By Medicine Hat News on August 1, 2024.

@MedicineHatNews

CF Industries has signed a final agreement with Exxon Mobil to store 500,000 metric tonnes of a carbon dioxide per year from a fertilizer production site in Yazoo City, Miss.

The Illinois-based ammonia producer with substantial plant in Medicine Hat made the announcement July 25, stating it will spend US$100 million to build a CO2 dehydration and compression facility at the site near the U.S. Gulf Coast.

The major oil company and fertilizer maker have signed a definitive commercial agreement to transport and permanently sequester underground the CO2, potentially starting in 2028 and be eligible for U.S. tax credits.

“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, president and CEO of CF Industries Holdings, Inc. “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.”

The Yazoo City plant produces ammonia that is upgraded into urea ammonium nitrate, for agricultural and ammonium nitrate, used in explosive production, or upgraded into diesel exhaust fluid.

This week’s announcement represents CF Industries’ second CCS project with ExxonMobil, including carbon storage at CF’s Donaldsonville, LA. facility. That project, with a stated capacity of two million tons of CO2 annually, is expected to begin in 2025.

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