CF Industries Holdings, Inc. announced the start-up of a carbon dioxide dehydration and compression facility at its Donaldsonville Complex in Louisiana. The facility enabled the transportation and permanent geological sequestration of up to 2 million metric tonnes of CO2 annually that would otherwise have been emitted into the atmosphere.
ExxonMobil, the company’s carbon capture and sequestration partner for the project, began transporting and permanently storing the CO2 from the facility.
Storage Implementation
On an interim basis, ExxonMobil stored CO2 from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Upon receiving applicable permits, ExxonMobil planned to transition to dedicated permanent storage, beginning with its Rose CCS project. Rose represented one of many dedicated permanent storage sites ExxonMobil was developing along the Gulf Coast to expand its integrated CCS network.
The US Environmental Protection Agency had issued a draft Class VI permit for Rose in July, with final permits expected later in the year.
Strategic Milestone
Tony Will, president and chief executive officer of CF Industries Holdings, Inc., described the facility’s start-up as a historic milestone in the company’s decarbonisation journey.
“The start-up of the Donaldsonville carbon dioxide dehydration and compression facility and initiation of sequestration by ExxonMobil is a historic milestone in our Company’s decarbonisation journey,” Will said. “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.”
Production and Tax Benefits
As a result of its Donaldsonville CCS project, CF Industries expected to produce approximately 1.9 million tonnes of low-carbon ammonia on an annual basis. The company also expected to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provided a credit per metric tonne of CO2 stored.
For more information visit www.cfindustries.com
