CF Industries announced the launch of the carbon dioxide dehydration and compression facility at its Donaldsonville complex.
The facility, located along the west bank of the Mississippi River in Ascension Parish, will enable the transportation and permanent geological sequestration of up to two million metric tons of carbon dioxide annually, according to a news release.
ExxonMobil, which has partnered with the company for the carbon capture and sequestration project, will be transporting and permanently storing the carbon dioxide, per the release.
The company expects to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of carbon dioxide stored.
“The start-up of the Donaldsonville carbon dioxide dehydration and compression facility and initiation of sequestration by ExxonMobil is a historic milestone in our company’s decarbonization journey,” Tony Will, president and chief executive officer, said in the release. “By starting permanent sequestration now, we reduce our emissions, accelerate the availability of low-carbon ammonia for our customers and begin generating valuable 45Q tax credits.”
As a result of its Donaldsonville project, the company expects to produce about 1.9 million tons of low-carbon ammonia every year.
Gonzales Weekly Citizen and Donaldsonville Chief, part of the USA Today Network of Louisiana, cover Ascension Parish and the greater Baton Rouge area. Follow at facebook.com/WeeklyCitizen and facebook.com/DonaldsonvilleChief.
