Exxon begins commercial CCS project with CF industries in Louisiana

Jan 26 (Reuters) - Exxon Mobil XOM.N said on Monday it has begun its commercial operation of carbon capture and storage, or CCS, with ammonia producer CF Industries CF.N in Louisiana, starting in 2025.

The project will transport and store up to 2 million tonnes a year (MTPA) of carbon dioxide from CF Industries' Donaldsonville complex, the company said.

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 CVX.N, Occidental Petroleum OXY.N and Talos Energy TALO.N.

The energy major has also signed agreements with AtmosClear and Lake Charles Methanol II to handle up to a combined 2 MTPA of CO2 from their planned projects in Louisiana. Additionally, it expects to start CCS operations with Linde and Nucor later this year.

Exxon plans to advance multiple CCS developments across Texas and Louisiana and is targeting a final investment decision on its first low-carbon data center by the end of 2026.

The company expects three CCS projects to come online in 2026.