1PointFive Signs 25-Year CO2 Offtake Agreement for Louisiana Low-Carbon Ammonia Project

1PointFive, an Occidental subsidiary, has completed a major 25-year offtake deal to handle approximately 2.3 million metric tons of carbon dioxide (CO2) emissions per year from the new Bluepoint low-carbon ammonia plant in Ascension Parish, Louisiana. The facility, a joint venture between CF Industries, JERA Co., Inc., and Mitsui & Co., Inc., will promote low-carbon ammonia production by incorporating carbon capture technology into its operations.

The deal will see Bluepoint's CO2 emissions sent to and securely stored in 1PointFive's Pelican Sequestration Hub. Already blessed with a final investment decision, the Pelican project is now making progress through development to emerge as one of the dominant figures in the carbon management infrastructure in the US Gulf Coast.

A Boost to Low-Carbon Manufacturing and Industrial Decarbonisation

The transaction puts the spotlight on 1PointFive's Gulf Coast sequestration network as a driver of large-scale, low-carbon industrial initiatives. With cutting-edge sequestration technology, the CO2 that is captured makes natural gas use even more sustainable, making it a cleaner feedstock for ammonia manufacture by sharply lowering emissions intensity.

Jeff Alvarez, President of 1PointFive Sequestration, said, “CF Industries’ and its partners confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner.”

He added, “By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth.”

Also read: 1PointFive and Enterprise Partner to Develop CO2 Transportation Network for Texas Sequestration Hub

Pelican Sequestration Hub: Preparing for Large-Scale Storage

Once operational, the Pelican Sequestration Hub in Louisiana will feature advanced infrastructure capable of storing industrial CO2 emissions deep underground, more than a mile beneath the surface. Leveraging Occidental’s extensive experience in CO2 management, the hub aims to handle up to 20 million metric tons of carbon dioxide annually, contributing to the broader decarbonization of energy-intensive industries.