LSB Industries, Inc., and Lapis Energy LP have jointly announced the filing of a permit application with the U.S. Environmental Protection Agency to construct a Class VI well as part of their project to capture and permanently sequester carbon dioxide at LSB’s El Dorado facility.
Class VI wells are used to inject CO2 into deep rock formations. This long-term underground storage, called geologic sequestration, reduces atmospheric CO2 emissions and helps to mitigate climate change.
Upon approval of the Class VI permit, Lapis will begin construction on the infrastructure required to capture and sequester CO2 at El Dorado. The project is targeting the Hosston and the Cotton Valley geologic formations to permanently store the CO2. Once in operation with a 2025 target date, the sequestered CO2 is expected to reduce LSB’s direct greenhouse gas emissions by approximately 25% from current levels. In addition, sequestering more than 450,000 metric tons of CO2 annually should allow LSB to produce over 375,000 metric tons of low carbon, or “blue” ammonia annually, a product expected to be more valuable than conventional ammonia.
The permanently sequestered CO2 generated from the facility’s ammonia production is expected to qualify for federal tax credits under Internal Revenue Code Section 45Q, which are currently up to $85 per metric ton of CO2 captured beginning in 2026.
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