ExxonMobil and CF Industries Ink Carbon Capture Deal

(Reuters) — Energy major ExxonMobil said on Thursday it has entered into a carbon capture and storage (CCS) agreement with ammonia producer CF Industries.

Carbon capture is a process through which carbon dioxide (CO2) generated from industrial activity is stored underground. The process has been embraced by oil companies including Chevron, Occidental Petroleum and Talos Energy.

Exxon will transport and store up to 500,000 metric tons per year of the captured CO2 from CF Industries' complex in Yazoo City, Mississippi, which makes nitrogen products for agricultural fertilizer.

The project will enable CF Industries to reduce the site's CO2 emissions by up to about 50% and is expected to start in 2028, Exxon said in a statement.

The agreement marks Exxon's fourth CCS project and the second with CF. Last year, it signed a CCS agreement with Nucor. In March, Exxon and Shell said they would work with Singapore to develop a cross-border CCS project.

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