HOUSTON (ICIS)--Greenfield Nitrogen plans to raise $120m to build the first regional anhydrous ammonia plant through grass-roots ownership in Garner, Iowa, which would produce about 120,000 short tons/year, the US producer announced on Wednesday.
Total cost for the plant is estimated at $220m. A seed capital round has already raised $4.7m.
The site is ready and permitted, with construction expected to begin later this year and output expected to begin in 2020.
Greenfield Nitrogen said it is pursuing the opportunity as the US continues to import more than 6m shorts tons of nitrogen fertilizer, which is shipped long distances to reach the Midwest.
While other facilities have increased production, they now are producing mainly urea or other nitrogen products, which has left less net ammonia available.
It is projected that after 2018, the Midwest could see a decline of up to 390,000 short tons in the domestic supply of anhydrous ammonia due to product upgrades.
Located in the heart of the Corn Belt, the Garner plant is targeting the agricultural community within a 100-mile radius and is set to produce enough ammonia to meet one-third of the expected shortfall and approximately 1-2% of overall nitrogen imports.
If the market changes, the plant could be upgraded to other nitrogen products.