BioNitrogen signs urea supply agreement with Iowa distributor

03 April 2013 17:43  [Source: ICIS news]

HOUSTON (ICIS)--Fertilizer producer BioNitrogen announced Wednesday it has signed a urea supply agreement with United Suppliers, Inc. which will provide the distributor with the crop nutrient produced at its upcoming plants in Louisiana.

Florida-based BioNitrogen is giving a second life to the leftover materials from farming, timber and mining activities, which would in the past be viewed as lacking any future value. The biomass is transformed into urea through a gasification technology process and catalytic conversion.

United Suppliers of Eldora, Iowa is a distributor owned by locally controlled agricultural retailers and delivers crop nutrients to 20 US states and three providences in western Canada. This is the second supply agreement between the two companies and is anticipated that the contract will provide an estimated 124,200 short tons annually per plants for a lifespan of 25 years.

“The agreement for these plants provides a framework for building plants in a strategic area to provide green domestic urea to our nitrogen fertilizer customers based on BioNitrogen’s sourcing of biomass raw material. It will enhance our ability to obtain US manufactured fertilizer from BioNitrogen,” said Matt Carstens, United Suppliers vice president of crop nutrients.

In February, BioNitrogen announced plans to build five plants in Louisiana that will convert biomass composed of agricultural residue from such crops as sugarcane to urea. The company said the facilities will be located 65 miles north of Baton Rouge, and without revealing a time table or monetary value of the new plants, it has been projected the operations would be able to create 1,800 short tons of urea daily with an annual output expected to be 621,000 short tons.


By: Mark Milam



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