July 25 (Reuters) - Energy major Exxon Mobil ( XOM )

said on Thursday it has entered into a carbon capture and

storage (CCS) agreement with ammonia producer CF Industries ( CF )

.

Carbon capture is a process through which carbon dioxide

(CO2) generated from industrial activity is stored underground.

The process has been embraced by oil companies including Chevron ( CVX )

, Occidental Petroleum ( OXY ) and Talos Energy ( TALO ).

Exxon will transport and store up to 500,000 metric tons per

year of the captured CO2 from CF Industries' ( CF ) complex in Yazoo

City, Mississippi, which makes nitrogen products for

agricultural fertilizer.

The project will enable CF Industries ( CF ) to reduce the site's

CO2 emissions by up to about 50% and is expected to start in

2028, Exxon said in a statement.

The agreement marks Exxon's fourth CCS project and the

second with CF. Last year, it signed a CCS agreement with Nucor.

In March, Exxon and Shell said they would work with Singapore to

develop a cross-border CCS project.