LSB Industries, Inc. Secures Groundbreaking 5-Year Deal to Provide Low Carbon Ammonium Nitrate Solution

On May 22, 2024, LSB Industries, Inc. (“LSB” or “the Company”) (NYSE: LXU) revealed that it has forged a significant deal to provide Freeport Minerals Corporation (“Freeport”) with up to 150,000 short tons per annum of low carbon ammonium nitrate solution (“ANS”). This supply agreement will be fulfilled by LSB's El Dorado, Arkansas facility (“El Dorado”) over a period of 5 years starting from January 1, 2025, with a gradual ramp-up of the contracted volume.

LSB's low carbon product line originates from its carbon capture and sequestration initiative, currently underway in collaboration with its partner, Lapis Energy. This endeavor aims to capture and permanently sequester over 450,000 metric tons of CO2 annually from El Dorado’s ammonia production. Anticipated outcomes include the production of more than 375,000 tons of low carbon ammonia, which LSB can market or further process into various low carbon nitrogen products, including ANS. The project's operational launch is slated for 2026, contingent upon the Environmental Protection Agency (EPA) approving LSB and Lapis' Class VI permit application, which the companies anticipate receiving in the latter half of 2025.

Mark Behrman, President and CEO of LSB, commented, "The significance of this agreement reinforces our confidence that our industrial and mining clientele will recognize the significance of our low carbon nitrogen products in their decarbonization efforts and will value them accordingly. We consider our contract with Freeport as a significant stride toward realizing our vision of becoming a frontrunner in the global energy transition. We eagerly anticipate collaborating with them as a strategic supplier as they progress towards achieving their net zero objectives."

Freeport plans to utilize the low carbon ANS procured from LSB for its copper mining operations in the United States.

Based in Oklahoma City, Oklahoma, LSB Industries, Inc. is dedicated to spearheading the energy transition by manufacturing low and zero carbon products that support global infrastructure in construction, agriculture, and energy sectors. The LSB team is committed to fostering a culture of excellence in customer service, as the company currently supplies essential products to agricultural, industrial, and mining sectors, with plans to expand into the energy markets in the future. The company's production facilities are located in Cherokee, Alabama, El Dorado, Arkansas, and Pryor, Oklahoma, while also managing operations for a global chemical company in Baytown, Texas. LSB produces chemicals essential for sustaining America's food supply chain and facilitating the nation's economic activities. These chemicals are integral components of numerous everyday products relied upon by countless individuals across the country.