Fertiliser firm starts up CO2 capture project with ExxonMobil

US fertiliser firm CF Industries has started up a carbon dioxide dehydration and compression facility at its Donaldsonville Complex in Louisiana, enabling the transportation and permanent sequestration of up to two million tonnes of CO2 annually.

The facility is expected to produce around 1.9 million tonnes of low-carbon ammonia each year, with oil and gas major ExxonMobil partnering on the carbon capture and storage (CCS) component.

ExxonMobil will handle the transportation and sequestration of the CO2, initially utilising enhanced oil recovery methods.

Pending permit approval, ExxonMobil plans to later switch to storing the CO2 in permanent underground sites, starting with its Rose CCS project in Jefferson County, Texas.

ExxonMobil submitted a permit application for the project to the US government’s Environmental Protection Agency (EPA) in 2024. The EPA is the country’s federal regulatory agency that oversees the underground storage of CO2 for states without primacy.

The EPA issued a draft Class VI permit for Rose in July, and final approval is expected later this year.

Tony Will, President and CEO of CF Industries, said that by starting sequestration now the company could reduce its emissions, accelerate the availability of low-carbon ammonia for its customers, and begin generating 45Q tax credits.

Last week, the Section 45Q tax credit for carbon dioxide utilisation was increased to match the $85 per tonne rate for sequestration, creating a level playing field in the merchant market.

Under the previous law, the tax credit favoured CO2 sequestration at $85 per tonne, while CO2 utilisation, which supports critical markets such as food, beverage, and medical, was only eligible for $60 per tonne.