LSB and Lapis announce filing for EPA permit to construct a Class VI well

LSB Industries and Lapis Energy jointly announced the filing of a permit application with the U.S. Environmental Protection Agency or EPA to construct a Class VI well as part of their project to capture and permanently sequester carbon dioxide at LSB’s El Dorado, Arkansas facility …In addition, sequestering more than 450,000 metric tons of CO2 annually should allow LSB to produce over 375,000 metric tons of low carbon, or "blue" ammonia annually, a product expected to be more valuable than conventional ammonia. The permanently sequestered CO2 generated from the facility’s ammonia production is expected to qualify for federal tax credits under Internal Revenue Code Section 45Q, which are currently up to $85 per metric ton of CO2 captured beginning in 2026. Reg Manhas, Lapis Energy’s CEO, stated, "We are very pleased to have submitted the Class VI permit application to the EPA. We conducted extensive up-front research, computational modeling, and tests in order to confirm the efficacy to permanently sequester CO2 at LSB’s El Dorado facility and believe that the quantity and quality of the data will facilitate the EPA process. This project benefits from the presence of geological formations that provide high-capacity storage with excellent injection potential directly beneath the facility. These conditions allow for a very short pipeline within LSB’s property to transport the CO2 from the ammonia plant. We look forward to working with the EPA towards approval of this important Class VI well application."