LSB Industries, Inc. (NYSE: LXU) shares were static Wednesday, on revealing it has entered into a landmark agreement to supply up to 150,000 short tons per annum of low carbon ammonium nitrate solution to Freeport Minerals Corporation. LSB will supply the ANS from its El Dorado, Arkansas facility for five years commencing January 1, 2025, with a phasing in of the low carbon contracted volume.
The Oklahoma City-based LSB says its low carbon product offering stems from the carbon capture and sequestration project that it currently has underway with its partner, Lapis Energy, who will capture and permanently sequester more than 450,000 metric tons of CO2 produced annually from El Dorado’s ammonia production.
The carbon sequestration is expected to result in more than 375,000 tons of low carbon ammonia that LSB can sell or upgrade and sell to customers in the form of other low carbon nitrogen products, such as ANS. The project is expected to commence operations in 2026 pending approval by the Environmental Protection Agency (EPA) of LSB and Lapis’ Class VI permit application, which the companies expect to receive in the second half of 2025.
Freeport intends to use the low carbon ANS purchased from LSB for its United States copper mining operations.
LXU shares were unchanged from Tuesday’s close at $9.71.
