Northern Plains Nitrogen receives preliminary approval for loan

10 October 2013 21:56  [Source: ICIS news]

HOUSTON (ICIS)--City officials in Grand Forks, North Dakota have given preliminary approval for a loan of $250,000 (€185,000) to Northern Plains Nitrogen for the building of a nitrogen plant, the fertilizer producer confirmed on Thursday.

The company has applied for a loan from the Grand Forks Growth Fund Committee to assist with purchasing of 320 acres east of the city. The total purchase price for the site is $1.7m, according to the company.

Northern Plains has estimated that the nitrogen plant will have a price tag of $1.5bn and will break ground in the spring of 2015 and start production during 2017. Officials have estimated the plant will have a rate of production of approximately 2,200 tons/day (2,000 tonnes/day) of ammonia and create 600,000 tons/year of nitrogen-based fertilizers.

The facility will convert gas currently being flared from oil wells in western North Dakota. The natural gas would be captured and transported to the plant via pipelines. The company intends to target buyers in the central US region as well as into Canada.

If the loan is ultimately approved, it will be combined with a $250,000 loan from the North Dakota Development Fund and packaged with approximately $1.2m coming from the company’s own private loan and investor equity funds. The funds from the state are contingent on the approval of the Grand Forks committee.

The city will hold a public hearing on the matter on 21 October and could possible decide at that time to finalise the loan agreement.

($1 = €0.74)

 


By: Mark Milam



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