ExxonMobil and CF Industries have announced a carbon capture project that will store 2 million tonnes per annum of carbon dioxide in Louisiana, with start-up expected by early 2025.

The project will sequester CO2 emissions from CF Industries’ Donaldsonville, Louisiana, blue ammonia production complex, in which CF Industries announced it would invest $200 million to build a CO2 dehydration and compression unit to enable carbon capture and transportation.

US supermajor ExxonMobil will work with EnLink Midstream to transport and store the CO2 in a 125,000 acre storage location in Vermilion Parish.

“This landmark project represents large-scale, real-world progress on the journey to decarbonise the global economy,” said Dan Ammann, president of ExxonMobil low-carbon solutions.

“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.”

The project is part of Louisiana’s goal to reach net-zero emissions by 2050, joining a slew of other carbon capture and storage (CCS) projects in the region. Talos Energy has a CCS project set for the Mississippi River Industrial Corridor in Louisiana with first injection in 2026, while Oxy Low Carbon Ventures subsidiary 1PointFive is developing in the area.

Denbury Resources, meanwhile, is developing three distinct CCS projects in Louisiana, which will be connected to its pipeline in Donaldsonville. ExxonMobil is interested in acquiring the US independent due to its CCS assets along the US Gulf Coast.

“Today’s announcement of this unprecedented, large-scale, low-carbon partnership is a key milepost on Louisiana’s path toward a brighter future for our climate, our economy and our people,” Louisiana Governor John Bel Edwards said.

“The collaboration and innovation to bring carbon capture and storage technology forward at this scale reaffirms our state’s ability to grow our economy without sacrificing our long-term emission-reduction goals to net zero by 2050.”

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