Fertilizer Mega–Project in ND Billion Dollar Fertilizer Mega–Project in the US Underway
America’s leading farmer-owned cooperative CHS plans a major investment in fertilizers: The cooperative announced plans for a US $ 3 billion nitrogen fertilizer manufacturing plant in Spiritwood, North Dakota.
Inver Grove Heights, Minnesota/USA – The final plans for the project were approved during a meeting of the CHS Board of Directors in September. The company expects to have the site operational in the first half of 2018. The fertilizer plant at Spiritwood will be the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota.
"CHS is proceeding today as the plant's sole investor," said Carl Casale, CHS president and chief executive officer. "However, because our owners' interests are at the heart of what we do, we will always pursue ownership of strategic assets and partnerships that will help us continually add value to their businesses."
More than 2400 Tons of Ammonia Per Day
The CHS fertilizer plant will produce more than 2,400 tons of ammonia daily which will be further converted to urea, UAN and Diesel Exhaust Fuel (DEF). The majority of the nitrogen products from the plant will serve farmer-owned cooperatives and independent farm supply retailers within a 200-mile radius of the plant in the Dakotas, parts of Minnesota, Montana and Canada.
The plant will be located 10 miles northeast of Jamestown, N.D., on a 640-acre site near the Spiritwood Energy Park. When fully operational, it is expected to use an estimated 88,000 MM British thermal units/day of natural gas, 40 megawatts/day of electricity and 2,400-2,700 gallons/minute of water.
Fertilizers, especially ammonia and nitrogen based fertilizer, typically rely on natural gas as their premier raw material – ab substance that is available cheaply and in great quantities in the US following the shale gas boom of the past decade.
Fertilizer Project first Proposed in 2012
"Throughout plant construction and when operational, CHS is committed to stringent employee and community safety standards and has plans for a fully-trained, on-site emergency response team for fire and EMT services, along with an emergency response plan developed with community responders and safety systems for fail-safe shutdown," said Brian Schouvieller, CHS senior vice president, Ag Business.
CHS first announced its interest in building a fertilizer manufacturing plant in September 2012. In April 2014, the company postponed a final decision when construction and labor costs exceeded initial estimates.
"Because of the size and scale of this investment, we needed to take the additional time to review costs and reassess areas where we could make modifications," Casale said. "We are now fully prepared to proceed with an investment that will add tremendous value to our member-owners, and further expand our global crop nutrients business platform."
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