US CF Industries announces $100 million emissions reduction project at Mississippi facility

HOUSTON (ICIS)–US fertilizer producer CF Industries announced that it is moving forward with a carbon capture and sequestration (CCS) project at its Yazoo City, Mississippi complex that is expected to reduce carbon dioxide (CO2) emitted to the atmosphere from the facility by up to 500,000 tonnes annually.

As part of the project the company has 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.

The producer is going to spend approximately $100 million at Yazoo City to build a CO2 dehydration and compression unit to enable CO2 to be generated as a byproduct of ammonia production and subsequently be captured to be transported and stored.

Once sequestration by ExxonMobil has commenced, CF said expects the project to qualify for tax credits which provides a credit per metric ton of CO2 sequestered.

“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, CF Industries Holdings president and CEO.

“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.”

The producer added that once sequestration starts, the Yazoo City complex will be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites.

Most of the ammonia produced at the Yazoo City Complex is upgraded into nitrogen fertilizers such as urea ammonium nitrate solution (UAN) and ammonium nitrate (AN) or upgraded into diesel exhaust fluid.

AN produced at Yazoo City is used as fertilizer and by the mining industry as a component of explosives.

CF said demand for these products with lower carbon intensity is expected to increase significantly as agriculture and mining industries work to lower emissions in their supply chains.