ExxonMobil signs second carbon capture agreement with CF Industries

ExxonMobil Corp. has signed a second carbon capture and storage (CCS) agreement with CF Industries Holdings Inc., the energy major’s first in Mississippi.  

The agreement is ExxonMobil’s fourth emissions-capturing deal, bringing its total CCS customer commitments to 5.5 million tonnes/year (tpy), the company said in a release July 25.

In this recent deal, ExxonMobil agreed to remove up to 500,000 tpy of CO₂ emissions from CF Industries’ industrial site in Yazoo City, Miss., where the company makes nitrogen products for agricultural fertilizer and other essential products.

The deal with ExxonMobil is expected to enable CF Industries to reduce the site’s CO₂ emissions by up to about 50%. CF Industries will invest about $100 million into its Yazoo City complex to build a CO₂ dehydration and compression unit to enable CO2 generated as a byproduct of the ammonia production process to be captured for transport and storage, the company said in a separate release.

Startup is planned for 2028. Once sequestration has begun, CF Industries expects the project to qualify for tax credits under Section 45Q of the Internal Revenue Code.   

This is the second CCS agreement signed between ExxonMobil and Illinois-based CF Industries.

In October 2022, ExxonMobil, EnLink Midstream LLC, and CF Industries agreed to a partnership to store as much as 2 million tpy of industrial CO₂ emissions from CF Industries’ Ascension Parish, La., complex. Emissions are to be transported via EnLink’s network and stored underground at a 125,000-acre property owned by ExxonMobil in Vermilion Parish, about 100 miles southwest of the complex (OGJ Online, Oct. 13, 2022). Startup remains on track for 2025.