The world's first corn cob ammonia plant

Farmers who were struck high with fertilizer price in the past 12-24 months might cheer at this news about California-based SynGest planning to construct the world's first corn biomass-based ammonia plant in Menlo, Iowa.

The SynGest Menlo plant will use 150,000 tons/year of Iowa corn cobs to produce 50,000 tons/year of bio-ammonia, enough to fertilize 500,000 acres of Iowa corn farm, says CEO Jack Oswald. Production is expected to begin in 2012.

The US reportedly consumes 18 million tons/year of ammonia and half of that is said to be imported.

"The few large ammonia plants in the U.S. are aging fast and no significant domestic expansion is foreseen," says Oswald. "Even a 20% shortfall in the foreign ammonia supply chain, whether it's accidental or deliberate, will cause serious problems in our food industry and related financial markets."

SynGest says the bio-ammonia plant concept was first created during the 80s and early 90s. With the plant, not only will farmers get rid of corn cob waste and profit from it, they'll get [hopefully] cheaper fertilizer price in the bargain.

A major Midwestern agribusiness is expected to work with Syngest to supply the stover and distribute the ammonia from the Iowa plant. SynGest says that company will be identified sometime this month.