ExxonMobil Enters Into Largest-of-Its-Kind Emissions Capture Agreement

October 24, 2022 by Dan McCue
ExxonMobil Enters Into Largest-of-Its-Kind Emissions Capture Agreement
Louisiana Bayou. (Photo by JP Valery via UnSplash)

IRVING, Texas — ExxonMobil and CF Industries, a global manufacturer of hydrogen and nitrogen products, have entered into what the parties describe as the “the largest commercial agreement of its kind” to capture and permanently store up to 2 million metric tons of CO2 emissions annually in Louisiana. 

To bring their goal to fruition, CF Industries plans to invest $200 million to build a CO2 dehydration and compression unit at its Donaldsonville, Louisiana, manufacturing plant.

At the same time, ExxonMobil will develop a 125,000-acre CO2 storage location in Vermilion Parish with EnLink Midstream providing the pipeline network between the two facilities.

According to the companies, the 2 million metric tons of emissions captured annually will be equivalent to replacing approximately 700,000 gasoline-powered cars with electric vehicles.

“CF Industries is pleased to partner with ExxonMobil through this definitive CO2 offtake agreement, accelerating our decarbonization journey and supporting Louisiana’s and the country’s climate goals,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. in a written statement.

“This agreement also ensures that we remain at the forefront of the developing clean energy economy. As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia. This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonization goals.”

Dan Ammann, president of ExxonMobil Low Carbon Solutions, said the project represents “large-scale, real-world progress on the journey to decarbonize the global economy.

“ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we’re ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We’re encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the Inflation Reduction Act,” Ammann said.

“CF Industries expects to market up to 1.7 million metric tons of blue ammonia annually. A chemical process is considered “blue” when CO2 emissions are captured before their release into the air, making the process more carbon-neutral. 

Demand for blue ammonia is expected to grow significantly as a decarbonized energy source for hard-to-abate industries, both for its hydrogen content and as a fuel itself, because ammonia’s components, nitrogen and hydrogen, do not emit carbon when combusted.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue.

 

A+
a-
  • carbon capture
  • In The News

    Health

    Voting

    Renewable Energy

    March 27, 2024
    by TWN Staff
    Rep. Cleaver New Co-Chair of House Renewable Energy and Energy Efficiency Caucus

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency... Read More

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency Caucus. He was invited to serve as co-chair by Sens. Jack Reed, D-R.I., and Mike Crapo, R-Idaho, the co-chairs of the Senate Renewable Energy and Energy... Read More

    March 26, 2024
    by Dan McCue
    Biden Administration Approves Seventh Offshore Wind Project

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off... Read More

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off the coast of Martha’s Vineyard, Massachusetts, that proponents say will eventually power 320,000 homes. The project is the seventh commercial-scale wind farm to be approved under... Read More

    March 26, 2024
    by Dan McCue
    Sen. Blumenthal Lauds Expansion of Tax Credit for Offshore Wind Projects

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and... Read More

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and celebrate the Biden administration’s decision to expand eligibility of federal tax credits for offshore wind projects. “This tax credit has been a long time in coming,”... Read More

    China to Challenge Biden's Electric Vehicle Plans at the WTO

    BEIJING (AP) — China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are... Read More

    BEIJING (AP) — China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are discriminatory requirements for electric vehicles subsidies. Starting this year, U.S. car buyers are not eligible for tax credits of $3,750 to $7,500 if critical minerals or other battery... Read More

    Here Are the Big Hurdles to the Global Push to Build Up Renewable Energy

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N.... Read More

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N. climate summit in December. But right now, the post-pandemic global economy is throwing up obstacles that will need to be overcome if the goal is going... Read More

    March 25, 2024
    by Dan McCue
    Energy Department Awards $6B to Decarbonization Projects

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states... Read More

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states to decarbonize energy-intensive industries while creating jobs and revitalizing the communities in which they are located. Funded by the bipartisan infrastructure law and Inflation Reduction Act,... Read More

    News From The Well
    scroll top