Exxon signs decarbonization deal with leading ammonia producer

On Wednesday, Exxon Mobil Corp, a new player in the low energy field, concluded the first contract on carbon storage. The company needs it to enter the carbon capture and storage market which will become multi-trillion by 2050.

The contract was concluded with CF Industries Holdings, the world’s largest ammonia producer. The subject of the contract is CO2 disposal at the Exxon site in Louisiana. The largest oil producer decided to get into an unusual business — the burial of gases. This business will be interesting to companies that strive to reduce carbon dioxide emissions from their production.

Management of Exxon said that the volume of transportation and storage of CO2 will be 2 million metric tons per year beginning in 2025. CF Industries will launch a $200 million gas compression plant in Louisiana. This unit will be necessary to process the emissions that occur during the production of ammonia.

According to Dan Ammann, head of Exxon's low-carbon division, this deal is very important. In 2021, the company turned its attention to a new direction, and the management decided to organize a new business.