Ammonia producer CF Industries has started up the CO2 dehydration and compression facility at its Donaldsonville complex in Louisiana, but the carbon is being used for EOR until partner Exxon Mobil secures its final permit for dedicated permanent storage.
The facility enables the transport and permanent geologic sequestration of up to 2 million metric tons of CO2 annually, CF Industries said July 14.
“On an interim basis, Exxon Mobil is storing CO2 from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Upon receiving its applicable permits, Exxon Mobil plans to transition to dedicated permanent storage, starting with its Rose CCS project,” CF Industries said in a news release. “Rose is one of many dedicated permanent storage sites Exxon Mobil is developing along the Gulf Coast to expand its integrated CCS network.”
An 18-mile pipeline will connect the captured CO2 to the Rose CCS storage area in Jefferson County, Texas, where CO2 will be stored between 0.5 and 1.5 miles below the surface, according to Exxon’s website. The project includes three CO2 storage wells and CO2 monitoring systems.
The U.S. Environmental Protection Agency issued a draft Class VI permit for the Rose CCS project in July, and final permits are expected later this year, according to CF Industries.
CF Industries Holdings CEO Tony Will called the startup of the Donaldsonville facility and initiation of sequestration by Exxon a “historic milestone” on CF Industries’ decarbonization journey.
“By starting permanent sequestration now, we reduce our emissions, accelerate the availability of low-carbon ammonia for our customers and begin generating valuable 45Q tax credits,” Will said.
CF Industries said it expects to produce approximately 1.9 million tons of low-carbon ammonia annually because of its Donaldsonville CCS project. The company said it also expects to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 stored.