TWO different U.S. firms announced plans to build two new nitrogen fertilizer plants, adding capacity of more than 5,000 tons per day to the nation's domestic supplies.
Ohio Valley Resources (OVR) and farmer-owned CHS Inc. both announced plans in late 2012 for billion-dollar construction projects that could commence early this year.
Illinois-based OVR announced that it had selected Spencer County, Ind., as the home of its new nitrogen fertilizer plant. The 150-acre site, just north of Rockport, Ind., provides access to two interstate natural gas pipelines, plus rail, highway and potentially river access.
OVR said its plant will be the first entirely new facility of its kind built in the U.S. by a U.S. company in more than 25 years. Slated to produce roughly 2,420 tons of ammonia per day and 3,000 tons of urea ammonium nitrate (UAN) per day, the plant will take advantage of increasingly accessible domestic natural gas supplies and will be designed to consume less energy than the current standard.
"We are extremely proud that our new plant will help to stabilize the supply and price of nitrogen fertilizers to serve the eastern Corn Belt and thereby support the regional agricultural economy," OVR president Doug Wilson said.
Minneapolis, Minn.-based cooperative CHS also announced its intention to build its first nitrogen fertilizer manufacturing facility, planned for Spiritwood, N.D.
During the co-op's annual meeting last month, CHS affirmed that plans are moving forward on the $1.4 billion facility, which is currently the subject of a $10 million feasibility study in conjunction with local authorities, the North Dakota Farmers Union and contracted construction and engineering firms.
CHS announced in September that it had selected a 200-acre site near Spiritwood and was embarking on the basic feasibility and engineering studies necessary to launch the project. Plans call for production of 2,200 tons of ammonia per day, including anhydrous ammonia, urea and UAN.