Backers of a proposed nitrogen plant for the Northern Plains are reaching across the border to Canadian farmers as investors in the project, Darin Anderson, president of the North Dakota Corn Growers Association (NDCGA), told Green Markets last week. As previously reported (GM July 9, p. 1), corn growers in the tri-state area of North Dakota, South Dakota, and Minnesota are being eyed for the project.
Anderson said the form of the entity is yet to be decided. A cooperative has been mentioned. He said the ultimate goal is for it to be majority owned by farmers.
Much is yet to do for the $1 billion project, including finding a site, as well as deciding on engineering, design, and product mix. While a site has not been selected, supporters do hope that the facility can utilize natural gas that is currently being flared – i.e., wasted – in North Dakota. This possibility is currently being studied. Regardless, until that is a reality, North American natural gas prices are attractive for any new startup.
Anderson said any facility would produce multiple nitrogen products, and investors would be queried on their preferences.
Anderson hopes that once these decisions are made, ground could be broken in late 2013/early 2014.
As noted last week, NDCGA feels growers are at risk when local producer Dakota Gasification in Beulah has problems. Likewise, it feels area growers are at the end of the line with regards to fertilizer distribution in general, making a regional plant a big plus for local growers.
NDCGA has lined up industry veteran Don Pottinger as an advisor, as well as Larry Mackie of Mackie International Inc.