Agreement calls for approximately 2.3 million metric tons of carbon dioxide to be securely stored per year at 1PointFive’s Pelican Sequestration Hub in Louisiana
1PointFive, a subsidiary of Occidental, has announced the signing of a 25-year offtake agreement for approximately 2.3 million metric tons of carbon dioxide (CO2) per year from CF Industries’ and its joint venture partners JERA Co., Inc. and Mitsui & Co., Inc. recently announced Bluepoint low-carbon ammonia production facility in Ascension Parish, Louisiana. Under the agreement, CO2 captured from the facility will be transported and geologically stored at 1PointFive’s Pelican Sequestration Hub, which has taken final investment decision and is moving through the development process.
The agreement demonstrates how 1PointFive’s U.S. Gulf Coast sequestration hubs can enable large-scale investments in the production of low carbon-products and help hard-to-decarbonize sectors address their emissions. Sequestration technology makes it possible to increase the value of natural gas, which can be used to produce ammonia with significantly lower carbon intensity when its CO2 emissions are captured during the manufacturing process.
'CF Industries’ and its partners confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner,' said Jeff Alvarez, President of 1PointFive Sequestration. 'By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth.'
When operational,1PointFive’s Pelican hub in Louisiana will include infrastructure to safely and economically sequester industrial emissions in geologic formations more than a mile underground.1PointFive is leveraging Occidental’s more than 50 years of experience managing and durably storing up to 20 million tons of CO2 per year.
'CF Industries and its partners are proud to have 1PointFive and Occidental provide carbon dioxide transport and sequestration for our Bluepoint low-carbon ammonia production facility in Louisiana,' said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. 'Having a proven carbon capture and sequestration partner was essential to enabling our industry-leading project and the manufacturing jobs it will create. We look forward to working with 1PointFive and Occidental as they build on their long and established track record of safely storing carbon dioxide.'
Source: Occidental
