What is the financial and operational significance of LSB Industries acquiring full ownership of Project Blue?

LSB Industries has agreed to acquire 100% ownership of Project Blue—a carbon capture and sequestration initiative at its El Dorado, Arkansas facility—from Lapis Carbon Solutions for an estimated $95 million. This move grants LSB full operational control and enhanced commercial flexibility, and is projected to generate $25–30 million in annual earnings and cash flow upon completion, which is expected by late 2026 or early 2027.

How much CO2 will Project Blue capture annually, and what are the key revenue and regulatory benefits associated with it?

Project Blue aims to capture 400,000–500,000 metric tons of CO2 annually, qualifying LSB Industries for federal tax credits and enabling the production of low-carbon ammonia—creating additional revenue opportunities.

LSB Industries Targets Full Control of $95M Arkansas Carbon Capture Project

May 19, 2026

LSB Industries secured 100% ownership of its $95 million Project Blue carbon capture initiative in Arkansas. The facility aims to capture up to 500,000 metric tons of CO2 annually to support low-carbon ammonia production by 2027.

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