CF Industries Holdings, Inc., a leading ammonia producer, announced that it is proceeding with its planned carbon capture and sequestration (CCS) project at its facility in Yazoo City, Mississippi.
The CCS project is said to reduce 500,000 carbon metric tons of carbon emissions annually.
The transportation and sequestration of the emissions will be done in partnership with ExxonMobil. The sequestration of the CO2 will reportedly begin in 2028.
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CF Industries plans to invest around $100 million in its Yazoo City Complex to construct a CO2 dehydration and compression unit.
This unit will capture up to 500,000 metric tons of CO2 produced as a byproduct of ammonia manufacturing, enabling its transport and storage.
Once ExxonMobil begins sequestration, CF Industries anticipates that the project will be eligible for tax credits under Section 45Q of the Internal Revenue Code, which offers a credit per metric ton of CO2 sequestered.
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Tony Will, president and chief executive officer of CF Industries Holdings, Inc., said, “We are pleased to advance another significant decarbonization project that will keep CF Industries at the forefront of low-carbon ammonia production while also helping us achieve our 2030 emissions intensity reduction goal.”
He added, “This decarbonization project also will increase the availability of nitrogen products with a lower-carbon intensity for customers focused on reducing the carbon footprint of their businesses.”
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Once sequestration starts, the Yazoo City Complex will be able to produce products with significantly lower carbon intensity compared to conventional ammonia production facilities.
Most of the ammonia produced at the Yazoo City Complex is converted into nitrogen fertilizers, such as urea ammonium nitrate (UAN) solutions and ammonium nitrate (AN), or into diesel exhaust fluid, which helps reduce NOx emissions from diesel trucks.
The ammonium nitrate produced at Yazoo City is used as fertilizer and in explosives by the mining industry.
As the agriculture and mining sectors aim to reduce carbon emissions within their supply chains, the demand for these lower-carbon-intensity products is anticipated to rise substantially.
