Blue

The Project Blue Class VI CO₂ sequestration permit is a carbon storage project developed by Lapis Energy (AR Development) LP on behalf of LSB Industries at the El Dorado Chemical Company (EDCC) facility in Union County, El Dorado, Arkansas. The project will permanently store CO₂ generated from ammonia production via steam methane reforming (SMR), enabling the production of low-carbon “blue” ammonia while significantly reducing industrial emissions in the region. Project Blue is designed to inject up to 500,000 metric tonnes of CO₂ per year over a 20-year injection period, with initial injection targeted for early 2025. The project is expected to permanently sequester more than 450,000 tonnes of CO₂ annually, reducing LSB Industries’ Scope 1 emissions by approximately 25%. CO₂ will be injected through two dedicated Class VI wells (Blue INJ-1 and Blue INJ-2) located directly on the EDCC property. The target storage interval consists of approximately 3,000 feet of stacked saline reservoir formations located between 3,500 and 6,500 feet below surface, overlain by roughly 1,000 feet of impermeable shale confining layers to protect underground sources of drinking water and ensure long-term containment integrity. The captured CO₂ originates from the high-purity process stream of the SMR unit, which is currently vented to atmosphere, with future studies underway to evaluate capture of additional combustion-related emissions. The project includes a comprehensive monitoring and well network consisting of injection wells, above-confining-zone monitoring wells, in-zone monitoring wells, and water source wells to meet EPA Class VI containment and groundwater protection requirements. Overall, Project Blue represents Arkansas’ first commercial-scale Class VI CO₂ sequestration project, positioning the El Dorado ammonia facility as a regional low-carbon fuel producer while establishing geologic storage infrastructure that can support broader industrial decarbonization across the Gulf Coast region