Projects team represents OCI N.V. in agreements with Navigator CO2 Ventures for CO2 pipeline

Our projects team represented OCI N.V. on negotiating long-term agreements with Navigator CO2 Ventures to dispose of CO2 emissions from OCI's Iowa Fertilizer Company (IFCo) plant.

Navigator plans to build a 1,300-mile CO2 pipeline that will roll up CO2 emissions from ethanol and fertilizer plants across five Midwestern states and bury the emissions permanently underground in Illinois.

The transaction took 15 months from initial planning to contract signing. OCI will keep the federal section 45Q tax credits that are an inducement to capture CO2 emissions.

Both installation of the carbon capture equipment and construction of the Navigator pipeline and sequestration facility are expected to be complete by the first quarter of 2025. The Navigator project is backed by the BlackRock Global Energy & Power Infrastructure Fund III, which invests in essential, long-term infrastructure assets. Enerflex will engineer, fabricate and install the capture equipment for OCI.

The first phase of the project, abating up to 40 percent of IFCo's CO2 emissions from the ammonia production process, is a meaningful contribution to OCI's goal of achieving a 20 percent reduction in greenhouse gas intensity by 2030 and carbon neutrality by 2050. The second phase of the project aims to abate all of IFCo's CO2 emissions.

Our US-based deal team was led by Keith Martin (Washington, DC) and Deanne Barrow (San Francisco) and supported by Thom Hirsch (Washington, DC), Eddie Lewis (Houston), Jesse Hollingsworth (Dallas) and Christopher Psihoules (Washington, DC).