CF Industries has officially commenced operations at its new carbon dioxide (CO₂) dehydration and compression unit at the Donaldsonville Complex in Louisiana.
The initiative is designed to transport and permanently sequester up to two million tonnes per annum (mtpa) of CO₂ that would otherwise be emitted into the atmosphere.
The facility marks a significant collaboration with ExxonMobil, which is responsible for the transportation and long-term geological storage of the captured CO₂.
For the time being, ExxonMobil is using enhanced oil recovery as an interim storage method while it pursues permitting for dedicated permanent storage solutions.
The first step in this transition will be the Rose Carbon Capture and Sequestration (CCS) project.
The US Environmental Protection Agency (EPA) issued a draft Class VI permit for the Rose facility this month, with final approval anticipated later this year.
The Rose project is key to ExxonMobil’s expansion of its CCS network along the Gulf Coast, supporting a broader shift toward dedicated geologic storage of captured carbon.
According to CF Industries, the Donaldsonville CCS initiative will enable the production of approximately 1.9 mtpa of low-carbon ammonia and positions the company to benefit from Section 45Q tax credits, which incentivise the storage of CO₂ with a per-tonne credit.
CF Industries Holdings president and CEO Tony Will commented: “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.
“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.”
The CCS partnership between CF Industries and ExxonMobil was established in July 2024 and also covers the Yazoo City facility in Mississippi.
The Yazoo City site, which manufactures nitrogen products for agricultural fertilisers and other necessities, is projected to see up to a 50 per cent reduction in CO₂ emissions as a result of this collaboration.
This development underscores a significant advance in industrial-scale carbon capture and sequestration, supporting both emission reductions and the advancement of low-carbon production capacity for the US chemical and fertiliser sector.
