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Researched by Industrial Info Resources (Sugar Land, Texas)--Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) will store up to 2 million metric tons per year of captured carbon dioxide (CO2) emissions from CF Industries Holdings Incorporated's (NYSE:CF) (Deerfield, Illinois) manufacturing complex in Louisiana under a deal announced this week.
CF Industries, which produces hydrogen and nitrogen products, is investing $200 million to build a CO2 dehydration and compression unit at its Donaldsonville, Louisiana, nitrogen complex to enable captured CO2 to be transported and stored. Under the deal announced on Wednesday, ExxonMobil will transport and permanently store the captured CO2 in the company's geologic storage it owns in Vermilion Parish. As part of the project, ExxonMobil has signed an agreement with EnLink Midstream (NYSE:ENLC) (Dallas, Texas) to use EnLink's transportation network to deliver CO2 to permanent geologic storage. Operational start-up for the storage facility is scheduled for early 2025.
Industrial Info is tracking a $600 million project that includes the CO2 capture unit and a unit to produce 1.7 million tons per year of blue ammonia. A chemical process is considered "blue" when CO2 emissions are captured before their release into the air, making the process more carbon-neutral. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing project and plant databases can click here for the project report and click here for the plant profile.
The 2 million metric tons of emissions captured annually will be equivalent to replacing about 700,000 gasoline-powered cars with electric vehicles, the companies said in a press release.
"As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia," said Tony Will, president and chief executive officer of CF Industries. This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonization goals."
Dan Ammann, president of ExxonMobil Low Carbon Solutions, said "ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we're ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We're encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the Inflation Reduction Act."
According to the Clean Air Task Force, the Inflation Reduction Act of 2022 provides updates to the 45Q tax credit, which incentivizes the use of carbon capture and storage (CCS). "By expanding and enhancing 45Q, Congress has made the tax credit significantly more accessible to a broad array of investors and developers," the task force said.
Industrial Info is tracking 16 active CCS-related projects in Louisiana, worth $11.89 billion. Subscribers can click here for the list of project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
CF Industries, which produces hydrogen and nitrogen products, is investing $200 million to build a CO2 dehydration and compression unit at its Donaldsonville, Louisiana, nitrogen complex to enable captured CO2 to be transported and stored. Under the deal announced on Wednesday, ExxonMobil will transport and permanently store the captured CO2 in the company's geologic storage it owns in Vermilion Parish. As part of the project, ExxonMobil has signed an agreement with EnLink Midstream (NYSE:ENLC) (Dallas, Texas) to use EnLink's transportation network to deliver CO2 to permanent geologic storage. Operational start-up for the storage facility is scheduled for early 2025.
Industrial Info is tracking a $600 million project that includes the CO2 capture unit and a unit to produce 1.7 million tons per year of blue ammonia. A chemical process is considered "blue" when CO2 emissions are captured before their release into the air, making the process more carbon-neutral. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing project and plant databases can click here for the project report and click here for the plant profile.
The 2 million metric tons of emissions captured annually will be equivalent to replacing about 700,000 gasoline-powered cars with electric vehicles, the companies said in a press release.
"As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia," said Tony Will, president and chief executive officer of CF Industries. This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonization goals."
Dan Ammann, president of ExxonMobil Low Carbon Solutions, said "ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we're ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We're encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the Inflation Reduction Act."
According to the Clean Air Task Force, the Inflation Reduction Act of 2022 provides updates to the 45Q tax credit, which incentivizes the use of carbon capture and storage (CCS). "By expanding and enhancing 45Q, Congress has made the tax credit significantly more accessible to a broad array of investors and developers," the task force said.
Industrial Info is tracking 16 active CCS-related projects in Louisiana, worth $11.89 billion. Subscribers can click here for the list of project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
