A Manitoba farmers group, Keystone Agricultural Producers (KAP), has announced that it will have one seat on the board of directors of the proposed farmer-owned $1 billion Northern Plains nitrogen facility. The plant, spearheaded by the North Dakota Corn Growers Association, would be built somewhere in the Northern Plains and would use low-priced natural gas, with an eye toward using much of the currently flared gas in North Dakota. KAP identifies itself as a democratically controlled general farm lobby organization that represents and promotes the interests of agriculture and agricultural producers in Manitoba.
KAP says the project has already moved from the feasibility stage to the planning stage, and has both investors and industry management experts on board.
“Manitoba farmers are supporting this world-class project because they are frustrated with the high price of fertilizer – a vital crop input that just keeps going up, regardless of supply and demand patterns,” said Doug Chorney, KAP president. “This is an opportunity for us to impact the regional fertilizer supply and market dynamics.”
“We will create a stable fertilizer supply that is not dependent on off-shore natural gas supplies and freight costs,” said Don Pottinger, long-time fertilizer veteran and advisor to the project, noting that the majority of North American fertilizer is currently produced using foreign natural gas supplies.
The Manitoba Canola Growers Association (MCGA) will fund Manitoba’s seat on the project board on behalf of KAP and all Manitoba farmers. It has announced that Brian Chorney, a farmer and agricultural engineer who is MCGA’s vice-president, has been selected to fill the position on the board.
In related news, the North Dakota Agricultural Products Utilization Commission was to hear a request July 19 for $150,000 to help finance a business plan to construct an anhydrous ammonia plant that could use North Dakota natural gas. However, a Commission spokesperson late in the day told Green Markets it has not made a decision.
In the meantime, North Dakota’s governor is on board with a new nitrogen project. “While we continue to supply the nation with high-quality natural gas, we can also continue to add value right here in North Dakota,” said N.D. Governor Jack Dalrymple. “By converting more natural gas to fertilizer we can further diversify our economy; we can create a more reliable fertilizer supply for our farmers in North Dakota and throughout the Midwest, and we can continue to reduce the flaring of natural gas.”