Michigan Potash receives US Department of Energy conditional loan commitment for project
Mark Milam
17-Jan-2025
HOUSTON (ICIS)–The US Department of Energy’s Loan Programs Office has announced a conditional commitment for a loan guarantee of up to $1.26 billion to fertilizer producer Michigan Potash & Salt Company (MPSC) to help finance the construction of a potash solution mine and processing plant.
The development in Osceola County, Michigan is anticipated to produce approximately 800,000 short tons/year of muriate of potash (MOP) and about 1 million short tons/year of salt.
At its peak the company projects there will be 1,400 full-time equivalent union construction jobs and 200 ongoing operations jobs.
The government agency noted that potash is one of the key natural fertilizers needed for agricultural production with US currently importing over 90% of its annual demand, with most of that supply coming from Canada.
Further it said that given the project’s location it does provides advantageous proximity to the Corn Belt and is viewed as contributing to both food security and supply chain resilience.
The project is being designed to electrify thermal processes and utilize emission-free sources for the majority of its electricity demand.
If finalized the Michigan Potash plant would be one of the only new potash facilities built domestically within the last 60 years and be the most energy-efficient plant with limited surface disturbance.
This would be due to its innovative pairing of intrinsic geothermal heat from solution mining and mechanical vapor recompression.
The brine extracted from an underground deposit will be processed into high-grade MOP and multiple grades of salt via crystallization.
The potash will be sold to US agribusiness Archer Daniels Midland (ADM) while salt will be sold to a range of markets including food-grade, bulk, water conditioning and road de-icing.
The agency said Loan Programs Office borrowers are required to implement a comprehensive community benefits plan which ensure meaningfully engagement with community and labor stakeholders to create good-paying jobs and improve the well-being of the community.
It said that Michigan Potash has committed to a project labor agreement with 11 trade unions and will have a majority union construction workforce. It has also opened a community center near the site for residents to voice concerns, ask questions, or hold meetings about the project.
Further the company has partnered with educational institutions to better engage the community and foster a diverse and talented hiring pool.
The agency and the company must satisfy certain technical, legal, environmental and financial conditions before the department enters definitive documents and funding the loan.
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