China National Machinery Industry Corp. (Sinomach), the People’s Republic of China’s third biggest contractor, has expressed an interest in helping Southeast Idaho Energy (SIE) finance and construct a $2 billion nitrogen fertilizer and sulfur complex near American Falls west of Pocatello. The project has been hindered by a tightening of the U.S. credit market.
A subsidiary of Refined Energy Holdings of New York, SIE plans for the Power County Advance Energy Center to produce up to 500 tons per day of anhydrous ammonia, up to 1,800 tons per day of granular urea, and up to 1,600 tons per day of UAN using clean coal gasification technology. Construction at one time was targeted to begin in 2011.
In an aggressive expansion mode, Sinomach officials have told SIE that they want the project’s contract for engineering, procurement, and construction in exchange for helping to bankroll it. Sinomach had more than $14 billion in sales last year and has been active in more than 130 countries in Asia, Africa, Latin America, Russia, and Eastern Europe.
Last September, the Power County Planning and Zoning Commission in American Falls agreed to extend a permit renewal for SIE’s project (GM Sept. 20, 2010). SIE officials sought the permit renewal to give themselves more time to work with investors to finance the project, saying that credit lending had tightened significantly as a result of the nation’s economic downturn.
An area of approximately 450 acres in a heavy industrial zone two miles southwest of American Falls has been designated for the complex. Up to 1,350 construction workers would be employed during a three-year construction phase, and as many as 150 employees would be hired to operate the plant. Some engineering work has been under way.
Ramesh Raman, CEO at Refined Energy Holdings, declined to comment about reports that Sinomach was interested in investing in the Power County Advance Energy Center.
Founded in 1997, Sinomach has more than 70 overseas offices and branches, with more than 80,000 employees. It has averaged more than 30 percent annual growth in recent years, with total business revenue exceeding $15 billion in 2008. Sinomach would also like to develop a 10,000-to-30,000-acre technology zone for industry, retail centers, and homes south of Boise’s airport.