Oklahoma City-based LSB Industries is on its way in becoming one of the suppliers of low-carbon or “blue” ammonia as it moves ahead in a joint project with carbon management expert Lapis Carbon Solutions.
Lapis Carbon Solutions recently finalized its investment decision and intends to provide 100% funding of the capital and operations expenditures of the new carbon capture and sequestration project, which is to be set up at LSB’s El Dorado, Arkansas, facility. The project will also be the first carbon capture system in Arkansas and only the third project from ammonia production in the nation.
The first such carbon capture injections into the deep geological formations aren’t expected until sometime in 2026 or 2027. But once it’s fully operational, LSB anticipates capturing more than 400,000 metric tons a year of CO2. Clean-air advocates claim it’s the equivalent of removing 109,000 passenger cars off the road per year.
The capture and sequestration of CO2 – a by-product of ammonia produced by the LSB-El Dorado facility – will remove this greenhouse gas from the atmosphere. This project will capture the CO2 from the plant, condition it to remove any water or other impurities, compress the CO2 into a liquid and inject it into deep saline reservoirs more than a mile below the plant site. Thick sealing intervals of shale occur above the injection zones to ensure that the CO2 remains as a trapped in situ fluid. All surface work involved will be on the LSB-El Dorado facility site, though the reservoirs deep underground may, by their nature, be somewhat larger than the plant footprint.
Carbon Capture and Sequestration Facility
The captured CO2 will be injected into rocks thousands of feet below the United States Drinking Water (USDW) supply, and below a 1,000-foot thick, impermeable layer of shale. These rocks held oil and gas deposits for millions of years, without contaminating the USDW, because of the effectiveness of the shale layer. In the same way, this layer will prevent any CO2 from migrating into the USDW.
About Lapis Energy LP
Lapis Carbon Solutions (“Lapis”) is a full-service carbon capture, utilization and storage (“CCUS”) developer and operator, providing customized solutions for emissions-intensive industry partners. Based in Dallas, Texas, the Lapis team is comprised of leading industry experts with multiple decades of technical, commercial and project experience.
About Cresta
Cresta is an investment manager with over $1 billion of assets under management funding specialized middle market infrastructure opportunities.
About LSB Industries, Inc
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, manufactures and sells chemical products for the agricultural, mining, and industrial markets. The Company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. LSB’s products are sold through distributors and directly to end customers primarily throughout the United States.
