US BioNitrogen acquires land and loan for Florida urea project

11 March 2014 18:35 Source:ICIS News

HOUSTON (ICIS)--Fertilizer company BioNitrogen confirmed on Tuesday it has reached an agreement to purchase for $1 over 50 acres (20 ha) of land in Florida from the Taylor County Development Authority for the eventual construction of a urea plant.

Florida-based BioNitrogen said the development agency will also furnish the company with a $5m loan to be used for plant engineering and site development work. The company plans to repay the $5m through a tax-free bond it is attempting to secure.

The site is located in Perry, Florida, and BioNitrogen officials said the location is ideal for one of their plants because it is well located for feedstock supplies and comes equipped with access to transportation and availability of utilities like electricity and water services.

As part of the agreement, BioNitrogen has agreed to construct a plant with an investment in excess of $200m and provide a minimum of 45 full-time jobs in Taylor county.

The plant is projected to produce approximately 200,000 tons/year (180,000 tonnes/year) of urea and use local solid waste biomass such as wood waste as its feedstock. Closing of the bond and funding for this plant is expected within 180 days while the finalisation of the land purchase and loan is expected to occur as soon as practical.

Florida-based BioNitrogen plans to convert biomass into urea through a gasification technology process and catalytic conversion.

BioNitrogen CFO Bryan Kornegay said the funding is central to the success of the overall plant project and that the county has done a tremendous job of providing inducements and assistance.

“We are very excited to have secured this important property. This is a critical development for BioNitrogen and provides us with the land and access to resources we need as an initial step in committing to build a plant in Taylor county,” said Kornegay.

By Mark Milam