1. CF Industries launched CO2 dehydration facility in Louisiana. 2. The facility captures and stores 2 million tons of CO2 annually. 3. CF expects 1.9 million tons of low-carbon ammonia production. 4. Tax credits from Section 45Q are anticipated with CO2 sequestration. 5. Partnership with ExxonMobil enhances their carbon capture strategy.
The launch of the CO2 facility signals CF's commitment to sustainability and growth. Historical precedents show that green technology initiatives often boost stock prices due to increasing investor interest in sustainable practices.
The article highlights significant operational advancements and potential revenue growth through tax credits, attracting investor interest.
The tax incentives and production increases will have enduring implications on profitability and market position. Aligning with the global shift towards sustainability can secure CF's long-term growth.
NORTHBROOK, Ill.--(BUSINESS WIRE)-- CF Industries Holdings, Inc. (NYSE: CF) today announced the start-up of the carbon dioxide (CO2) dehydration and compression facility at its Donaldsonville Complex in Louisiana. The facility will enable the transportation and permanent geological sequestration of up to 2 million metric tons of CO2 annually that would otherwise have been emitted into the atmosphere. ExxonMobil, the Company’s carbon capture and sequestration (CCS) partner for this project, will be transporting and permanently storing the CO2.
"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," said Tony Will, President and CEO, CF Industries Holdings, Inc.
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On an interim basis, ExxonMobil is storing CO2 from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Upon receiving its applicable permits, ExxonMobil plans to transition to dedicated permanent storage, starting with its Rose CCS project. Rose is one of many dedicated permanent storage sites ExxonMobil is developing along the Gulf Coast to expand its integrated CCS network. The U.S. Environmental Protection Agency issued a draft Class VI permit for Rose in July, and final permits are expected later this year.
“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,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “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 CCS project, CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia on an annual basis. CF Industries also expects to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 stored.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company’s website at www.cfindustries.com and encourages those interested in the Company to check there frequently.