HOUSTON (ICIS)--Canadian fertilizer producer Agrium announced on Tuesday that its board of directors has approved a $720m expansion project at its nitrogen facility in Borger, Texas.
In a statement, the producer said once completed the expansion will add a new urea production unit with a capacity of approximately 610,000 tonnes, of which approximately 100,000 tonnes will be diesel emission fuel (DEF) grade urea. DEF is used to reduce nitrogen oxide emissions in diesel vehicles.
The project will also increase the annual ammonia capacity for the facility by approximately 145,000 tonnes, which will bring the total annual gross ammonia capacity to approximately 635,000 tonnes.
Agrium said construction will begin in March, with completion expected in the second half of 2015. The Borger facility is expected to operate at normal production rates during the construction phase.
Company CEO Chuck Magro said the expansion will provide greater flexibility to meet changes in demand by product and region and reduce the producer’s reliance on existing ammonia distribution channels.
“Agrium is one of the largest and lowest cost producers of nitrogen in the world. The upgrade and expansion at the Borger facility will continue to grow our nitrogen footprint in this important agricultural region while providing a strong return on investment. The project will ensure the facility's future longevity, while using the latest in environmental control technology," said Magro.