All posts by hlancey@bloomberg.net

Cinis’s Örnsköldsvik Plans Remain Intact

News Briefs, Sulfate of Potash, Sweden

Sweden’s Cinis Fertilizer on Jan. 22 announced that it still plans to commission the 100,000 mt/y sulfate of potash (SOP) production facility in Örnsköldsvik at the end of first-quarter 2024, with production starting a few weeks later (GM Jan. 19, p. 26), despite delays in the raw material sodium sulfate from its collaboration partner Northvolt.

Cinis said it has secured input supplies for both the start of production, as well as the remainder of the year.

“In order to ensure planned production volumes throughout the year 2024, we have activated our agreements with existing and new suppliers both in Sweden and internationally,” said Cinis Founder and CEO Jakob Liedberg. “These suppliers of sodium sulfate complement the volumes we receive from Northvolt. Starting in February, we will receive deliveries of inputs to our facility in Örnsköldsvik.”

“We have very good relations with Northvolt and several other suppliers of residual streams from various sectors, including the pulp industry, and I look forward to finally starting our production of environmentally friendly potassium sulfate,” he added.

Falcon Isle Inks JV, Plans Move to New Location

London, News Briefs, Phosphate, Phosphate Rock, U.S.

Keras Resources plc, London, on Jan. 22 announced the signing of a five-year 50:50 Joint Venture Agreement between its wholly owned organic phosphate subsidiary, Falcon Isle Resources Corp. (FIR), Salt Lake City, and PhoSul LLC, Sugar City, Idaho, an organic soil enhancement fertilizer company with granulator operations in Idaho.

The jv includes the construction and commissioning, funded by Phosul, of FIR’s five ton per hour granulator plant near Delta, Utah. The plant will produce a PhoSul® granulate comprising 80% of FIR’s organic rock phosphate from its Diamond Creek mine in Utah. FIR will sell mesh rock phosphate to the jv, estimated at 11,000 tons per year at its cost of production. It said this would be an approximate 200% increase on FIR’s 2023 sales of 4,606 tons.

To facilitate the expansion in processing capacity, FIR has agreed to acquire an 8.4 acre property with 77,000 square feet of recently constructed undercover warehouse infrastructure for $700,000 from Western Ag Credit. The facility was constructed within the past 10 years.

The property is located in the farming town of Sutherland, eight miles north of Delta, Utah, and approximately 80 miles southwest of the Spanish Fork operations. FIR will continue to produce its current dry phosphate products as well as the new PhoSul® JV granulates at the Delta facility. Commissioning of the plant is expected by the end of April 2024.

Keras said it believes the current operations in Spanish Fork will, over the next few years, come under increasing pressure from residential development. As a result, Keras has been assessing the option to move operating facilities. It said the consummation of the jv was the catalyst for the move and provided the financial security required for both the acquisition and funding.

Keras also noted that the new warehouse size at 77,000 square feet, which has Agricultural Industrial zoning and a Conditional Use Permit already approved, more than doubles Spanish Fork’s 33,000 square feet.

Keras noted that Burningham Enterprises Group, FIR’s mining and logistics contractors, have mining and processing operations in the Delta area, which facilitates reduced back-haul trucking rates from the Diamond Creek mine to the new Delta headquarters. It said this largely mitigates the increased trucking distance from Diamond Creek to Delta compared to Spanish Fork, but Delta is considerably closer to the company’s end markets in the Western US.

Keras said the transition from Spanish Fork to Delta will begin immediately and is expected to be completed around the end of April 2024.

Wall Street Stunned by ADM News

News Briefs, Russia, Ukraine

Agricultural giant Archer Daniels Midland (ADM) stunned the trading and processing world on Jan. 21 when it placed its CFO Vikram Luthar on leave and cut its earnings outlook pending an investigation into its accounting practices, according to Bloomberg. On Jan. 22 ADM shares plunged 24%, the most on record, wiping $8.8 billion from its market value.

Analysts say the probe highlights ADM’s struggle to expand beyond crop trading into the nutrition business, which began with a $3.1 billion acquisition of WILD Flavors in 2014. The nutrition operations have reportedly struggled with demand for changes in the formulation of products, including alternative protein used in veggie meats.

The nutrition division that is under investigation is responsible for less than 10% of ADM’s revenue, yet it has had an outsized influence on recent executive bonuses, records show. Bloomberg Opinion’s Javier Blas said the commodity giant must act fast to restore trust.

Aurora Cooperative Pays Penalty

Aurora, NC, News Briefs

Aurora Cooperative Elevator Co., Lenexa, Kan., has agreed to pay a $82,677 civil penalty to resolve alleged violations of the federal Clean Air Act’s chemical risk prevention provisions at its agronomy business in Harvard, Neb., which stores, sells, and distributes anhydrous ammonia.

EPA said the penalty is based on a January 2023 inspection that determined that Aurora violated the law by failing to submit a risk management plan, perform an updated hazard review, and conduct an audit to ensure compliance with the regulations. EPA said Aurora took the necessary steps to return the facility to compliance after the inspection.

EPA Settles with Cooper Heat

Ammonia, News Briefs, U.S.

The US EPA has reached a settlement with Cooper Heat Treating LLC, Detroit, Mich., over alleged violations of Clean Air Act requirements aimed at preventing chemical accidents at facilities that use certain hazardous substances. The company has paid a penalty of $12,300.

EPA determined from a June 2022 inspection that Cooper Heat failed to comply with requirements to help minimize the risk of an accidental release at facilities with more than 10,000 pounds of anhydrous ammonia.

Specifically, EPA alleged that Cooper Heat failed to evaluate hazards related to stationary source siting and a potential failure of its engineering and administrative controls, and also failed to periodically inspect its facility’s piping and submit an updated risk management plan.

As part of the settlement, the company will install permanent ammonia and oxygen sensors throughout its facility, install fixed cameras along its ammonia process line, and purchase and use an infrared camera for preventative maintenance.

ARA Launches Driver Training Partnership

News Briefs

The Agricultural Retailers Association (ARA) on Jan. 24 announced a new member service to help effectively train more drivers to meet the Entry Level Driver Training (ELDT) requirements set by the Federal Motor Carrier Safety Administration (FMCSA).

“When FMCSA adopted the ELDT requirement for new CDL Class A/B or HAZMAT amid the already problematic truck driver shortage, ARA flagged a need for training resources to help its member companies safely and quickly train new drivers,” said ARA Senior Vice President of Public Policy & Counsel Richard Gupton.

“By partnering with the National Propane Gas Association’s (NPGA) Administrative Compliance Experts (ACE), ARA is able to relieve some of the pressure on ag retailer members caused by the ongoing need for more truck drivers on the road,” Gupton said.

As an FMCSA Registered Training Provider, NPGA’s ACE Services is authorized to submit all the required materials to FMSCA on behalf of the participating company. ACE Services provides the resources needed so that behind-the-wheel training can be done in-house with a qualified instructor, ARA said.

ARA members enrolled in the new member service will benefit from ACE handling, including FMCSA paperwork and filings, FMCSA audits, and training materials and training equipment guidance to meet FMCSA requirements. ARA said it will launch this member service in a webinar on Jan. 30 with ACE.

ACE said the service has helped train more than 3,000 drivers and can save companies up to $3,000 per driver. ARA members will be able to unlock ACE network partner pricing available at various tiers of service with separate pricing for HAZMAT-only.

Farmers Protest Across Europe

Europe, France, Germany, News Briefs, Poland, Ukraine

Farmer protests have spread from Poland and Romania to France and Germany in recent weeks, Bloomberg reported, with grievances ranging from stringent regulations and rising fuel costs to shrinking subsidies and the impact of Ukrainian produce flowing into local markets.

In France, where tractors have obstructed highways, President Emmanuel Macron’s government is trying to defuse the fury and stop demonstrations from escalating into a blockade of Paris. France is taking steps to ensure that food retailers agree to a fair share of revenues to producers in annual negotiations, and is expected to make other pledges to improve farmers’ finances.

Plans are expected to include measures to cut red tape and offset the impact of shrinking subsidies on non-road diesel. The government may also pledge to speed up financial handouts for farmers who have been affected by floods or cattle disease.

Protests that began in the south of France spread through the week, as farmers blocked major roads and snarled traffic around the country with go-slow processions. Some unions have urged their members to cut off the main routes into Paris on Jan. 26.

Many of the farmers’ complaints have focused on what they see as a tangle of ever-shifting regulations that have pushed many of them to the brink of bankruptcy.

On Jan. 24, leading French farmers’ union FNSEA grouped the grievances into a litany of demands ranging from tax credits for agricultural fuel to dispensations from European Union rules on fallow land. “Incomprehensible decisions are raining down on our sector,” the union said. “We need deep structural change.”

Part of the challenge for Macron is the huge public backing for the protests, despite spreading travel chaos. According to an Odoxa-Backbone Consulting survey of 1,005 people for newspaper Le Figaro, 89% of French people support the movement.

The EU began a strategic dialog on Jan. 25 to address growing divisions over agriculture across the bloc. But the effort is a slow-moving process, and it’s unclear how much the EU can do quickly to ease the protests.

Turkey’s Bagfaş to Pay Thyssenkrupp €24.5 M

Germany, News Briefs, Turkey

Turkish fertilizer producer Bagfaş AŞ is to pay €24.5 million (approximately $26.6 million) to German engineering company Thyssenkrupp Industrial Solutions AG after Turkey’s top appeals court rejected Bagfas’s appeal of a ruling by the International Court of Arbitration, Bloomberg reported, citing a company filing.

According to the filing, Bagfaş had filed arbitration proceedings against Thyssenkrupp due to the German engineering group’s alleged failure to fulfil warranty tests in accordance with its contract obligations at Bagfaş’ CAN/AN plant, which was commissioned and put into production in the third quarter of 2015.

However, according to the filing, since it was not possible to directly enforce the international arbitration award in Turkey, Thyssenkrupp filed the lawsuit in Turkish courts.

Yara Partners to Cut Emissions in Food Production

Germany, News Briefs, Norway

Yara International ASA and three additional Norwegian companies – agricultural cooperative Felleskjøpet, milling group Norgesmøllene, and retailer Reitan Retail (REMA 1000) – have signed a letter of intent aimed at reducing emissions from Norwegian food production, from fertilizer production to finished food products.

To achieve their goals, the companies will use mineral fertilizers produced using electrolysis and renewable energy, adopt better agronomic practices, and leverage precision farming tools. Oats will be the first available product, with a 25-30% lower carbon footprint expected compared to regular oats produced with traditional mineral fertilizers. The intention is to produce an oat-based bread, to be made available in REMA 1000’s stores in 2025.

“Finally, we can bring together the majority of the food value chain to reduce the carbon footprint of food, from farm to fork” said Svein Tore Holsether, Yara President and CEO. “The food system accounts for a third of global emissions, and it is not possible to reach the goals of the Paris Agreement without decarbonizing food production. With a growing population, we need to produce more food in a sustainable way. This collaboration marks an important step in the right direction.”

Yara Germany signed a similar cooperation agreement with German partners aimed at decarbonizing cereal cultivation last year (GM Aug. 11, 2023).

BP Inks Green MOU in Brazil

Brazil, Europe

UK-based BP Plc has signed a Memorandum of Understanding with the State Government of Ceará and the Port of Pecém with the aim of assessing the potential for the development of a green hydrogen production facility.

“We believe Brazil has strong opportunities in the energy transition, including potentially competitive conditions for the production of green hydrogen and derivatives,” BP said. “BP aims to be a global leader in hydrogen and is working towards developing a large portfolio of projects around the world. It’s part of our strategy to transform BP from an international oil company to an integrated energy company.”