CF Industries Holdings is moving forward with a CCS project at its Yazoo City, Mississippi, Complex that is expected to reduce 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 July 2024 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 $100m 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.

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.