The company has signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of CO₂ as part of the project, which is expected to start in 2028.

CF Industries will invest ~€92.5 million ($100 million) into its Yazoo City Complex to build a CO₂ dehydration and compression unit to sequester CO₂ generated as a byproduct of the ammonia production process. Once sequestration by ExxonMobil has commenced, CF Industries expects the project to qualify for tax credits.

“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. “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 facility will be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites. Most of the ammonia produced at the site is upgraded into nitrogen fertilizers or upgraded into diesel exhaust fluid. Demand for lower carbon intensity products is expected to increase significantly as the agriculture and mining industries work to lower 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.