LSB Industries secures 100% ownership pathway for El Dorado blue ammonia CCS project in Arkansas

LSB Industries has reached an agreement with Lapis Carbon Solutions that establishes a pathway for LSB to acquire 100% ownership of Project Blue, a carbon capture and sequestration project under construction at its ammonia plant in El Dorado, Arkansas, the company said in a May 19 press release.

Under the agreement, LSB will gain full operational control and commercial flexibility over the project without any upfront cash payment at closing. Lapis will continue to manage Class VI permitting and regulatory engagement with the U.S. Environmental Protection Agency, which is currently reviewing the injection well permit application.

Project Blue, initially announced in April 2022, is designed to permanently capture and sequester between 400,000 and 500,000 metric tons of CO₂ per year from the El Dorado facility’s ammonia production process. Sequestered CO₂ qualifies for federal tax credits of $85 per metric ton under Section 45Q of the U.S. Internal Revenue Code. The project will enable LSB to produce between 305,000 and 380,000 metric tons per year of low-carbon blue ammonia, opening additional revenue opportunities including environmental attribute sales.

The project remains on track for completion by the end of 2026 or early 2027, according to LSB. El Dorado is the first CCS project in the state of Arkansas and only the third of its kind at a U.S. ammonia facility. Full ownership would reduce LSB’s Scope 1 greenhouse gas emissions by approximately 25%.