El Dorado Carbon Capture & Storage Project

LSB Industries and Lapis Energy are developing a project that will capture and sequester CO2 that is currently produced as a by-product of LSB’s ammonia production at its El Dorado, Arkansas facility. The CO2 will be injected into deep geological formations largely located under LSB’s existing 1,400-acre plant site. The El Dorado project is the first carbon capture and storage (“CCS”) project in the state of Arkansas, and only the third project of its kind in the United States, putting LSB-El Dorado at the forefront of low carbon or blue ammonia production. This project is important for LSB from both environmental and commercial perspectives. CCS is a proven means of reducing greenhouse gas emissions from ammonia production. LSB’s customers also need solutions to help them decarbonize their supply chains. The project will allow LSB to become one of the first suppliers of blue ammonia to the international markets and will enable the company to reduce its scope 1 Greenhouse Gas (GHG) emissions by 25%. This will be equivalent to removing approximately 109,000 passenger cars from the road, which represents approximately 11% of the cars registered in Arkansas.