CF Industries Announces Emissions Reduction Project at Yazoo City, MS, Facility, Agreement with ExxonMobil to Transport and Sequester Up to 500,000 Metric Tons CO2 Annually
July 25 2024 - 4:30PM
Business Wire
CF Industries Holdings, Inc. (NYSE: CF), the world’s largest
producer of ammonia, today 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
metric tons 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. Sequestration is expected to start in 2028.
CF Industries will invest approximately $100 million into its
Yazoo City Complex to build a CO2 dehydration and compression unit
to enable up to 500,000 metric tons of CO2 generated as a byproduct
of the ammonia production process and subsequently captured to be
transported and stored. Once sequestration by ExxonMobil has
commenced, CF Industries expects the project to qualify for tax
credits under Section 45Q of the Internal Revenue Code, 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, president and chief
executive officer, CF Industries Holdings, Inc. “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.”
Once sequestration has begun, 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 (UAN) solutions
and ammonium nitrate (AN), or upgraded into diesel exhaust fluid,
which is used to reduce NOx emissions from diesel trucks. AN
produced at Yazoo City is used as fertilizer and also by the mining
industry as a component of explosives. Demand for these products
manufactured with a lower carbon intensity is expected to increase
significantly as the agriculture and mining industries work to
lower carbon emissions in their supply chains.
The Yazoo City CCS project represents CF Industries’ second
major decarbonization project leveraging CCS technologies, as well
as its second CCS project with ExxonMobil. The companies are
progressing a CCS project at CF Industries’ Donaldsonville,
Louisiana, facility that will sequester up to 2 million tons of CO2
annually that would otherwise have been emitted to the atmosphere.
Sequestration for the Donaldsonville project is expected to begin
in 2025. Implementation of the Donaldsonville and Yazoo City CCS
projects will allow CF Industries to achieve the Company’s 2030
emissions intensity reduction goal.
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
green and 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.
Cautionary Statement
Statements of future events, investments, or partnerships in
this release are forward-looking statements. Actual future results,
including project plans, partner participation, timing, capacities,
and costs could vary depending on the ability to execute
operational objectives on a timely and successful basis;
implementation of government frameworks and permitting for carbon
capture and storage and other lower-emission technologies; timely
completion of construction projects; commercial and consumer
interest in lower-emissions opportunities; changes in plans or
objectives prior to final funding decisions or project startups;
unforeseen technical or operational difficulties; and other market
factors including changes in supply and demand and other market
factors affecting future prices of oil, gas, and petrochemical
products as well as ammonia and hydrogen products; and other
factors discussed in this release and in Item 1A. Any
forward-looking statement speaks only as of the date of this press
release and the companies named herein disclaim any obligation to
update any forward-looking statement. Risk Factors of ExxonMobil’s
Annual Report on Form 10-K and under the heading “Factors Affecting
Future Results” are available through the Investors page of
ExxonMobil’s website at exxonmobil.com.
More detailed information about factors that may affect CF
Industries Holdings, Inc.’s performance and could cause actual
results to differ materially from those in any forward-looking
statements may be found in CF Industries Holdings, Inc.’s filings
with the Securities and Exchange Commission, including CF
Industries Holdings, Inc.’s most recent annual and quarterly
reports on Form 10-K and Form 10-Q, which are available in the
Investor Relations section of the Company’s web site.
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version on businesswire.com: https://www.businesswire.com/news/home/20240725783919/en/
Media Chris Close Senior Director, Corporate
Communications 847-405-2542 – cclose@cfindustries.com
Investors Darla Rivera Director, Investor Relations
847-405-2045 – darla.rivera@cfindustries.com
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