Louisiana facility taps CO2 emissions to extract oil

By Carlos Anchondo | 07/15/2025 07:06 AM EDT

An ammonia producer plans to claim a federal tax incentive while working with Exxon Mobil to store carbon dioxide.

A carbon dehydration and compression unit is pictured at CF Industries' Donaldsonville complex in Louisiana.

A carbon dehydration and compression unit is pictured at CF Industries' Donaldsonville complex in Louisiana. CF Industries

CF Industries has begun operating a carbon dehydration and compression unit at a sprawling complex in southeast Louisiana — part of the ammonia producer’s efforts to curb emissions and take advantage of a top carbon capture incentive.

In an announcement Monday, the Illinois-based company said carbon dioxide trapped at its Donaldsonville complex in Louisiana will be stored via enhanced oil recovery on an “interim basis.” The process uses the gas to help extract more oil.

Texas-based Exxon Mobil is handling the transportation and storage component of the project as part of an agreement unveiled more than two years ago. The eventual plan is to sequester the carbon underground through dedicated geologic storage, CF Industries said in a news release.

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That will start at Exxon’s planned CO2 storage project in East Texas, CF Industries said in its release. This month, EPA issued draft permits for CO2 injection wells to Exxon’s proposal, which is called the Rose Carbon Capture and Storage project. The comment period closes Aug. 4.

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