CF Industries’ Donaldson, Louisiana Ammonia 6 plant. (Photo from company website)
- It is the second major decarbonization project undertaken by CF Industries Holdings, Inc., the world’s largest producer of ammonia.
A carbon capture and sequestration (CCS) project is moving forward in Yazoo City. That was the word Thursday from CF Industries Holdings, Inc., the world’s largest producer of ammonia.
The company announced that the project at its Delta facility, its second major decarbonization project, is expected to reduce carbon dioxide (CO2) emitted to the atmosphere from the facility by up to 500,000 metric tons annually. As part of the project, the CF Industrial Holdings signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of the CO2, with sequestration expected to start in 2028.
“We are pleased to advance another significant decarbonization project that will keep CF Industries at the forefront of low-carbon ammonia production while also helping us achieve our 2030 emissions intensity reduction goal,” said Tony Will, President and CEO of CF Industries Holdings said in a statement. “This decarbonization project also will increase the availability of nitrogen products with a lower-carbon intensity for customers focused on reducing the carbon footprint of their businesses.”
CF Industries Holdings said it is investing approximately $100 million into its Yazoo City Complex. Once sequestration by ExxonMobil has commenced, the company expects the project to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 sequestered.
The Yazoo City Complex is expected to be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites.
According to the company, most of the ammonia produced at the Yazoo City Complex is upgraded into nitrogen fertilizers such as urea ammonium nitrate (UAN) solutions and ammonium nitrate (AN), or upgraded into diesel exhaust fluid, which is used to reduce NOx emissions from diesel trucks.
AN produced at Yazoo City is used as fertilizer and also by the mining industry as a component of explosives. The company anticipates demand for these products manufactured with a lower carbon intensity to increase significantly as the agriculture and mining industries work to lower carbon emissions in their supply chains.
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