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14 min ago 2 min read
Low-carbon products specialist LSB Industries has signed a deal with carbon capture firm Lapis Carbon Solutions to take full ownership of the El Dorado carbon capture and storage (CCS) project in Arkansas.
Expected to be completed by the end of 2026 or early 2027, the project is designed to capture up to 500,000 tonnes of carbon dioxide (CO2) annually from LSB’s existing ammonia production process and permanently store it underground.
By capturing and storing these emissions, the project allows LSB to produce up to 380,000 tonnes of blue ammonia annually. LSB Industries is among the larger ammonia producers in the US, with an annual capacity of roughly 900,000 to 927,000 tonnes.
LSB is expected to invest around $95m in the project by investing in development, permitting, construction, and operational milestones.
The company’s CEO, Mark Behrman, said full ownership would provide greater flexibility as it advances the project and evaluates future expansion opportunities at its El Dorado site.
Once operational, the CCS facility is expected to generate between $25m and $30m in annual earnings and cash flow.
Additionally, it will benefit from the US’s Section 45Q tax credits for captured and permanently sequestered CO2, currently worth $85 per tonne.
In July, an amendment to the 45Q tax credit aligned incentives for CO2 sequestration and utilisation, putting both at the same credit level. Previously, utilisation projects qualified for a lower $60 per tonne credit, a gap that had drawn criticism from parts of the industrial gas sector.
