US CHS mulls 800,000 tonnes/year ammonia plant in North Dakota

12 September 2012 21:21  [Source: ICIS news]

HOUSTON (ICIS)--US agricultural cooperative CHS said on Wednesday that it is taking steps toward building a more than $1bn (€780m) nitrogen fertilizer plant at Spiritwood, North Dakota.

CHS has selected a site on 200 acres (81 ha) near Spiritwood and, following further due diligence, necessary approvals and a successful engineering study, would move forward with the construction of the plant, which would be designed to produce 800,000 tonnes/year of ammonia.

By selecting the site, CHS said it is able to conduct a preliminary front-end engineering and design study, which will then be used to determine feasibility of construction plans for the project, expected to cost $1.1bn-1.4bn.

CHS is investing $10m in this first feasibility phase.

“This potential for this type of project is great news for our farmers and for the entire state of North Dakota,” said the state's governor, Jack Dalrymple.

“The CHS plant will help us further reduce the flaring of natural gas in western North Dakota and it will provide our farmers with a reliable supply of locally produced fertilizers in place of imports from foreign countries," Dalrymple said.

Preliminary plans call for construction of a plant to produce 2,200 tonnes of ammonia daily that would be distributed as anhydrous ammonia, urea and urea ammonium nitrate (UAN) liquid fertilizer to farm supply retailers and farmers in the Dakotas and parts of Minnesota, Montana and Canada.

The proposed North Dakota plant takes advantage of abundant regional natural gas feedstock and could employ 100-150 people, with a tentative start-up in the second half of 2016.

($1 = €0.78)

By: Frank Zaworski
+1 713 525 2653

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