CF Industries starts CO2 dehydration and compression operations at Donaldsonville complex

CF Industries Holdings has commenced operations at its new carbon dioxide (CO₂) dehydration and compression unit at the Donaldsonville Complex in Louisiana. The facility will allow for the annual transport and permanent geological sequestration of up to 2 million metric tons of CO₂ that would otherwise be released into the atmosphere.

The captured CO₂ will be handled by ExxonMobil, CF Industries’ carbon capture and sequestration (CCS) partner. ExxonMobil will initially store the CO₂ through enhanced oil recovery and, once regulatory approvals are in place, shift to dedicated permanent storage, beginning with its Rose CCS project. The U.S. Environmental Protection Agency issued a draft Class VI permit for Rose in July, with final authorization expected later in 2025.

“This is a historic milestone in our decarbonization journey,” said CF Industries President and CEO Tony Will. “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 initiative is expected to yield approximately 1.9 million metric tons of low-carbon ammonia per year. Under Section 45Q of the Internal Revenue Code, CF Industries qualifies for tax credits tied to the amount of CO₂ sequestered, enhancing the project’s commercial viability.

The Donaldsonville project is part of CF Industries’ broader effort to decarbonize its ammonia production network, the largest of its kind globally, and to supply low-carbon hydrogen and nitrogen-based products for agricultural and industrial use.