October 13, 2022 | By Mary Bailey
CF Industries Holdings, Inc. (Deerfield, Illinois), entered into the largest commercial agreement of its kind with ExxonMobil Corp. (Houston) to permanently capture and store up to 2 million metric tons of CO2 emissions annually from its manufacturing complex in Louisiana. The project is scheduled to go live in early 2025 and supports Louisiana’s net-zero CO2 goal.2 emissions by 2050.
As previously announced, CF Industries is investing $200 million to build a CO2 dehydration and compression unit at its Donaldsonville, Louisiana facility to enable CO capture2 to be transported and stored. ExxonMobil will then permanently transport and store the captured CO2 in secure geological storage that he owns in Vermilion Parish. As part of the project, ExxonMobil signed an agreement with EnLink Midstream to use EnLink’s transportation network to deliver CO2 to permanent geological storage. The 2 million metric tons of emissions captured per year will be equivalent to replacing approximately 700,000 gasoline-powered cars with electric vehicles.
“CF Industries is pleased to partner with ExxonMobil through this definitive CO2 “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 the first to commercialize a significant volume of blue ammonia. This will allow us to supply this source of low-carbon energy to hard-to-reduce industries that increasingly see it as central to their own decarbonisation goals.
“This landmark project represents large-scale, real-world progress on the journey to decarbonize the global economy,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “ExxonMobil offers a critical and scalable solution to reduce CO2 and we stand ready to provide the same service to other large industrial customers in the state of Louisiana and around the world. We are encouraged by the momentum we see generating for projects of this type, thanks to supportive policies such as the Inflation Reduction Act.
“EnLink has a system of more than 4,000 miles of pipeline already in the ground in Louisiana,” said Jesse Arenivas, CEO of EnLink. “Using this extensive network allows us to provide the most timely and cost-effective solution for CO2 transport, with a significantly lower environmental impact. Because of this, EnLink is uniquely positioned to be the CO2 preferred transportation provider in Louisiana’s Mississippi River corridor, which is a major hub of industrial activity for our economy. We look forward to working with ExxonMobil to help CF Industries and the State of Louisiana achieve their decarbonization goals.”
“Today’s announcement of this unprecedented, large-scale, low-carbon partnership is a key milestone on Louisiana’s path to a brighter future for our climate, our economy and our people,” said Louisiana Governor, John Bel Edwards. “The collaboration and innovation to advance carbon capture and storage technology at this scale reaffirms our state’s ability to grow our economy without sacrificing our long-term goals of reducing emissions to zero by 2050.”
CF Industries expects to market up to 1.7 million metric tons of blue ammonia annually. A chemical process is considered “blue” when CO2 emissions are captured before they are released into the air, making the process more carbon neutral. Demand for blue ammonia is expected to grow significantly as a decarbonized energy source for hard-to-decline industries, both because of its hydrogen content and as a fuel itself, because the components of ammonia—nitrogen and hydrogen—do not emit carbon when burned.
ExxonMobil Low Carbon Solutions works to bring lower emission technologies to market, making them accessible to industries that are difficult to decarbonize in the United States and internationally. It is focusing its carbon capture and storage efforts on point emissions, the CO capture process2 of industrial activity that would otherwise be released into the atmosphere. Once captured, CO2 it is injected into deep underground geological formations for safe, secure and permanent storage. In the United States, these storage efforts are regulated by state and federal agencies.
Carbon capture and storage is a safe and proven technology that can enable some of the most emitting sectors to significantly reduce their emissions. These industries include manufacturing, power generation, refining, petrochemical, steel and cement operations. With effective government policies, widespread deployment of commercial-scale carbon capture and storage projects could create a new industry, resulting in job creation and economic growth.