CF Industries Announces Start-up of Donaldsonville Complex CO2 Dehydration and Compression Unit for Permanent Sequestration

CF Industries has started up a carbon dioxide (CO2) dehydration and compression facility at its Donaldsonville Complex in Louisiana, enabling the transportation and permanent geological sequestration of up to 2 million metric tons of CO2 annually. ExxonMobil, the Company's CCS partner, will transport and store the CO2. CF Industries expects to produce 1.9 million tons of low-carbon ammonia annually and qualify for tax credits under Section 45Q of the Internal Revenue Code.

CF Industries Holdings, Inc. (NYSE: CF) has announced the start-up of its carbon dioxide (CO2) dehydration and compression facility at the Donaldsonville Complex in Louisiana. This facility will enable the transportation and permanent geological sequestration of up to 2 million metric tons of CO2 annually, which would otherwise have been emitted into the atmosphere [1].

ExxonMobil, CF Industries' carbon capture and sequestration (CCS) partner, will be responsible for transporting and permanently storing the CO2. Initially, ExxonMobil will store CO2 from the Donaldsonville Complex in permanent geologic sites through enhanced oil recovery. Once the necessary permits are obtained, ExxonMobil plans to transition to dedicated permanent storage, starting with its Rose CCS project [1].

The U.S. Environmental Protection Agency has issued a draft Class VI permit for Rose, with final permits expected later this year. This marks a significant milestone in CF Industries' decarbonization journey, as the company aims to reduce emissions, accelerate the availability of low-carbon ammonia for its customers, and begin generating valuable 45Q tax credits [1].

As a result of this project, CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia annually. Additionally, the company anticipates qualifying for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 stored [1].

CF Industries' mission is to provide clean energy to feed and fuel the world sustainably. The company's manufacturing complexes in the United States, Canada, and the United Kingdom, along with its unparalleled storage, transportation, and distribution network in North America, underpin its strategy to leverage its unique capabilities to accelerate the world's transition to clean energy [1].

References:
[1] https://www.businesswire.com/news/home/20250713409457/en/CF-Industries-Announces-Start-up-of-Donaldsonville-Complex-CO2-Dehydration-and-Compression-Unit-Permanent-CO2-Sequestration