CF Industries advances carbon capture project in Mississippi with ExxonMobil collaboration

CF Industries has unveiled plans for a significant carbon capture and sequestration (CCS) initiative at its Yazoo City, Mississippi facility. This ambitious project aims to curtail up to 500,000 metric tons of carbon dioxide emissions each year from its operations. The company has entered into a definitive commercial agreement with ExxonMobil. This partnership will facilitate the transportation and geological sequestration of CO2, with operations slated to commence in 2028.

The investment of approximately $100 million by CF Industries will be channeled into constructing a CO2 dehydration and compression unit at the Yazoo City Complex. This facility is designed to handle the CO2 generated as a byproduct of ammonia production, preparing it for transport and storage.

Once operational, this project is expected to qualify for tax incentives under Section 45Q of the Internal Revenue Code, which provides credits for each metric ton of CO2 sequestered.

The initiative promises to significantly reduce the carbon footprint of the ammonia and nitrogen products produced at the Yazoo City Complex. These products, which include urea ammonium nitrate solutions and ammonium nitrate, are essential in agriculture and mining, industries actively seeking to lower their environmental impact.

The Yazoo City project marks CF Industries’ second major foray into CCS technology and its second collaboration with ExxonMobil, following a similar project at the company’s Donaldsonville, Louisiana facility. This earlier project is set to sequester up to 2 million tons of CO2 annually, with sequestration expected to begin in 2025.