All posts by hlancey@bloomberg.net

Huma Acquires California-based Gro-Power

News Briefs, U.S.

Agricultural humic solutions supplier Huma® Inc., Gilbert, Ariz., on Feb. 20 announced that it has acquired the global granular fertilizer company Gro-Power Inc., Chino, Calif., effective immediately. The acquisition follows a longtime partnership of Huma, which was founded in 1973, supplying humates for Gro-Power humus-based fertilizer and soil conditioner products. Terms of the agreement were not disclosed.

“We greatly respect the trusted partnerships Gro-Power has established since its founding in 1966, and we’re committed to upholding the company’s strong reputation of excellence,” said Huma CEO Lyndon Smith. “Our goal is to not only preserve the legacy of Gro-Power and the Holden family, but to also strategically enter the granular fertilizer market to provide an expanded, more advanced portfolio to meet grower needs.”

In addition to Huma Plant & Soil products encompassing liquid nutrients, plant protection, and growth managers, the company now has the ownership rights to a suite of granular, humic-based fertilizers and soil conditioners.

“We’re always aiming to generate more product advancements and enhance services for both growers and our retail partners, and in 2024, we’re positioned to do exactly that,” said Fred Nichols, Huma Chief Sales and Marketing Officer. “Along with launching an established granular fertilizer lineup, Huma is putting more company boots on the ground to help tackle regional crop production challenges and provide customized, cost-effective field solutions.”

Sul4r-Plus Partners with Helm

News Briefs, U.S.

Sul4r-Plus, Louisville, Ky., has announced an exclusive partnership with Helm Crop Nutrition Americas. Citing Helm’s expertise and extensive network, the company said the collaboration represents a significant step forward as it ensures that its granular calcium-sulfate fertilizer will be efficiently delivered to farmers across North America.

TSX Approves Nutrien Share Repurchase Program

Canada, News Briefs

Nutrien Ltd. on Feb. 27 announced that the Toronto Stock Exchange (TSX) has accepted Nutrien’s notice to commence a normal course issuer bid (NCIB) to purchase outstanding common shares representing up to five percent of its issued and outstanding common shares (GM Feb. 23, p. 1).

Under the NCIB, purchases of common shares may be made through the facilities of the TSX, the New York Stock Exchange, and/or alternative trading systems in Canada and the US, or as otherwise permitted under applicable securities laws.

As of Feb. 16, 2024, Nutrien had 494,563,180 common shares outstanding and, therefore, is permitted to repurchase up to 24,728,159 of its outstanding common shares pursuant to the NCIB. Common shares purchased under the NCIB will be cancelled.

Purchases of common shares may commence on March 1, 2024, and will expire on the earlier of Feb. 28, 2025, the date on which the company has acquired the maximum number of common shares allowable under the NCIB, or otherwise decides not to make any further repurchases under the NCIB.

Nutrien’s prior NCIB for the purchase of up to 24,962,194 common shares expired on Feb. 29, 2024. As of Feb. 16, 2024, Nutrien repurchased an aggregate of 5,375,397 common shares at a weighted-average price of $69.76 per share, for an aggregate of $374,998,896 under the prior NCIB. Purchases were made on the open market.

Pollution Feared from Houthi-Hit Ship

Ammonia, Europe, News Briefs, Saudi Arabia, U.S.

The Rubymar, a UK-owned, Belize-flagged cargo ship hit by Houthi missiles in the Red Sea on Feb. 18 (GM Feb. 23, p. 31), has remained in limbo. While the crew were rescued by another ship and taken to Djibouti, the damaged ship is still looking for a safe harbor. While the ship did not sink, its engine room and fifth hold were underwater.

According to a Feb. 28 CNBC report, citing the vessel’s ship broker Blue Fleet Group, the vessel was awaiting help from the US Navy to tow the ship to the Saudi port of Jeddah, as other ports in the area have not agreed to accept it. The Yemeni government, citing fears that the vessel would sink, said pollution from the ship would negatively impact its local fishing industry.

While initially reported as a relatively small vessel carrying phosphates from Saudi Arabia to Varna, Bulgaria, the US Central Command on Feb. 24 said the ship was “transporting 41,000 tons of fertilizer when it was attacked, which could spill into the Red Sea and worsen this environmental disaster,” according to a Bloomberg report.

“The unprovoked and reckless attack by Iran-backed Houthi terrorists caused significant damage to the ship, which caused an 18-mile oil slick,” the Command reported.

In the meantime, the BBC reported that the Yemen government-run Saba news agency said in a report that the vessel carried large amounts of ammonia, oils, and dangerous materials that constitute a dangerous threat to marine life.

ICL Acquires Brazil’s Nitro 1000 for $30 M

Brazil, News Briefs

ICL Group Ltd. announced it has acquired Nitro 1000, a manufacturer, developer, and provider of biological crop inputs in Brazil, for approximately $30 million. The acquisition was completed at the beginning of this year, according to ICL’s Feb. 28 earnings statement.

ICL said Nitro 1000 will immediately join the ICL product portfolio as part of its Growing Solutions business segment, and ICL will begin selling to its existing customer base in Brazil. Nitro 1000 was founded in 2007. One of the company’s founders, Iris Guindani, will remain as head of operations.

Nitro 1000’s products replace or optimize the use of fertilizers, and mainly target soybean, corn, and sugar cane crops. According to ICL, this not only helps farmers increase profitability but also offers a more sustainable solution.

ICL said the acquisition marks “another meaningful step into the biologicals market, while expanding ICL’s product offerings and positioning the company for further expansions into new and adjacent end-markets.”

Increasing interest in alternatives to agrochemicals has created higher demand for biologicals, the company said, citing research by MarketsandMarkets, which sees the ag biologicals market growing at 13.8% CAGR and reaching $27.9 billion by 2028.

Elad Aharonson, President of ICL Growing Solutions, said the company is excited to merge Nitro 1000’s core expertise in biologicals manufacturing with ICL’s extensive R&D capabilities and innovation engine.

“This acquisition allows us to leverage our global Growing Solutions business to develop new products and technology, while benefitting from our existing production capacity and go-to-market strategy,” he said. “It will also enable us to continue to increase market share and leadership in Brazil specialty plant nutrition.”

Atlas Agro Gets Contract for Brazil Fert Project

Ammonium Nitrate, Brazil, Green Ammonia, News Briefs, Nitrogen, Switzerland

Atlas Agro, Zug, Switzerland, on Feb. 20 announced that it had awarded a dual competitive engineering contract to two engineering and construction consortiums to perform parallel competitive project engineering development for the company’s first Brazilian green nitrogen fertilizer plant in Uberaba, Minas Gerais, Brazil (GM May 12, 2023).

After this first development phase, Atlas Agro plans to roll the project over into a Front-End Engineering Design study (FEED). The company expects to start construction in 2025 and enter commercial operation in 2028.

“We are excited to start engineering for our first plant in Brazil,” said Knut Karlsen, Atlas Agro’s Co-Founder and President of South America. “Today, Brazil imports more than 90% of its nitrogen fertilizer, all produced using fossil fuels like natural gas and coal. By leveraging the country’s natural advantages in green energy, Brazil can substitute its fossil nitrogen fertilizer imports with local, green production. We in Atlas Agro are excited to contribute to the green re-industrialization of Brazil.”

Atlas Agro’s $850 million plant will consume 2.5 TWh of renewable energy annually and is expected to produce approximately 500,000 mt/y of green ammonium nitrate to serve the region. The company also has a $1.2 billion, 625,000 mt/y green nitrate project in Richland, Wash. (GM Nov. 22, 2023). In addition to the US and Brazil, Atlas Agro is also working closely with partners on project development in Paraguay.

Yara Brasil, Petrobras Ink MOU on Partnerships

Brazil, News Briefs

Yara Brasil Fertilizantes SA and Brazil’s Petróleo Brasileiro SA (Petrobras) have signed a non-binding Memorandum of Understanding (MOU) to explore potential business partnerships related to the production and decarbonization of local fertilizer and industrial products, according to separate media statements by the two parties on Feb. 29.

Brazil is a significant market for both agricultural and industrial applications, Yara said, with a focus on domestic production growth and future decarbonization. Petrobras said the MOU is aligned with its 2024-2028+ Strategic Plan, which aims to prepare the company for a more sustainable future, contributing to the success of the energy transition.

ADNOC’s Purchase of Fertiglobe Stake Approved

ADNOC - Abu Dhabi, Brazil, News Briefs

Brazil antitrust regulator Administrative Council for Economic Defense (CADE) has approved the UAE state-owned oil giant Abu Dhabi National Oil Co.’s (ADNOC) plans to buy OCI NV’s 50% + 1 share stake in Abu Dhabi-based Fertiglobe Plc for a total consideration of $3.62 billion (GM Dec. 15, 2023) without restrictions, according to Bloomberg citing the regulator’s Official Gazette and the agency’s website.

New Indonesian AN Plant Inaugurated

Ammonium Nitrate, Indonesia, News Briefs

Indonesia President Joko Widodo announced that a new 75,000 mt/y ammonium nitrate plant in Bontang, East Kalimantan, will cut imports of the material to 8% of total demand, from 21%, according to Bloomberg.

The plant is worth 1.2 trillion rupiah, or $76.3 million, he said at the plant’s inauguration ceremony on Feb. 29. The facility is jointly owned by the country’s three state-owned companies – PT Pupuk Kaltim, PT Dahana, and PT Kaltim Amonium Nitrat.

New Indian JV to Produce Coal-Based AN

Ammonium Nitrate, India, News Briefs

Coal India Ltd. (CIL) and Bharat Heavy Electricals Ltd. (BHEL) have formed a joint venture company to create a coal-to-chemicals business that would produce up to 2,000 mt/d of ammonium nitrate using BHEL’s in-house developed Pressurized Fluidized Bed Gasification (PFBG) technology, according to Bloomberg, citing a stock exchange filing.

CIL would be ensured at least 75% of the offtake from the project. CIL will own 51% of the jv while BHEL will have 49%. The registered office for the jv will be in the state of Odisha. Each company will have three members on the Board of Directors.