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LSB Industries and Lapis Energy are developing a project to capture and permanently sequester CO2 at LSB’s El Dorado, Arkansas facility.
The CO2 is produced as a by-product of LSB’s ammonia production at the facility. The CO2 will be injected into deep geological formations largely located under LSB’s existing 1,400-acre plant site.
Lapis, backed by Cresta Fund Management, a Dallas-based middle-market infrastructure investment firm, will make 100% of the capital investment required for the project development. The project will commence immediately, with expected completion by 2025, subject to the approval of a Class VI permit, at which time CO2 injections will begin.
Once operational, the project at the El Dorado site will initially capture and permanently sequester more than 450,000 metric tons of CO2 per year in underground saline aquifers, with the potential to increase this quantity.
In May 2024, LSB Industries entered into an agreement to supply up to 150,000 short tons per annum of low-carbon ammonium nitrate solution from the facility to Freeport Minerals Corporation. LSB will supply the ANS for 5 years commencing January 1, 2025, with a phasing in of the low carbon contracted volume.