All posts by hlancey@bloomberg.net

GROWMARK, CHS Explore Further Collaboration

News Briefs, U.S.

The Boards of Directors of GROWMARK Inc. and CHS Inc. announced on Jan. 12 that they have jointly agreed to conduct an exploratory process over the coming months to identify opportunities for the two cooperatives to further collaborate to better serve owners and customers.

The two farmer-owned cooperatives have a long-standing relationship and have partnered before on strategic projects, including the formation in 2021 of Cooperative Ventures, a venture capital fund focused on supporting advancements in breakthrough technologies for agriculture. GROWMARK is headquartered in Bloomington, Ill., and CHS in St. Paul, Minn.

While the outcome of the exploratory process is not yet known, the two companies said they are seeking further collaboration to improve agriculture, invest in technology, and bring new solutions to customers.

“Continuing our long history of adding value to our members and customers, while ensuring a strong and vibrant cooperative system for the future, is critical to the GROWMARK System,” said GROWMARK CEO Mark Orr. “Our partnership with CHS in Cooperative Ventures is a great example of cooperation amongst cooperatives that benefits the shareholders of both companies.”

“We believe that by working together we can better serve our farmer- and cooperative-owners,” said Jay Debertin, CHS President and CEO. “Ultimately, we aim to better meet customer demand for our owners’ products around the world and increase the value of the cooperative system.”

Mosaic Plans New Brazilian Facility

Brazil, News Briefs

Mosaic Fertilizantes is planning the construction of a new blending, storage, and distribution unit in Palmeirante (TO) in Brazil, as well as in a long-term railway transportation agreement, according to Toledo Marchetti Advogados, an attorney who assisted the company in the negotiations.

The project will be located within the Palmeirante Integrator Terminal (TIPA), which has a direct railway connection to the Port of Itaqui (MA), where imported raw materials for fertilizer production will arrive. Mosaic had not returned inquiries at press time.

Mosaic Fertilizantes will invest R$400 million in this new unit, with a production capacity of 500,000 mt/y, potentially reaching an annual production of 1 million mt by 2028. Additionally, the facility will have a warehouse for up to 100,000 mt. The project will employ around 200 people during its operational phase.

Sage Potash Receives Drill Permits

News Briefs, Potash, Vancouver

Junior miner Sage Potash Corp., Vancouver, B.C., on Jan. 8 announced the receipt of all required governmental approvals for two Class V exploration wells at its Sage Plain Potash Project in Utah’s Paradox Basin.

“Sage’s successful drilling permit applications represent a pivotal milestone on the company’s path to achieving pilot-scale potash mining and processing activities,” said Peter Hogendoorn, Sage CEO and Executive Chairman.

“The approved exploration wells will not only allow us to increase our understanding of the Sage Plain mineral resource, comprised in the Upper and Lower Cycle 18 potash beds underlying the property, but these same wells will, in future, be transitioned to injection production and disposal wells,” Hogendoorn added. “This is a highly significant de-risking event for the company, as the most consequential permit approvals for the project have now been secured, pending bonding.”

In partnership with global engineering firm RESPEC, Sage is advancing engineering and designs for a 50,000 mt/y pilot-scale potash solution mining operation as part of its ongoing engineering studies and production permit application (GM Dec. 8, 2023). Sage expects to submit a Large Mine Operation (LMO) permit for up to 150,000 mt/y (GM April 14, 2023).

Novaphos, Hatch to Partner on Phos Acid Site

Canada, Florida, News Briefs, Phosphate, Phosphoric Acid

Junior phosphate technology developer Novaphos, Fort Meade, Fla., on Jan. 9 announced a strategic agreement with Hatch, Mississauga, Ont., an engineering project management and professional services firm, to focus on Novaphos’ first commercial phosphoric acid production facility. Hatch will invest in Novaphos and utilize its expertise to advance the project.

“We are thrilled that Hatch will serve as a key strategic partner and advisor as Novaphos continues to revolutionize how phosphate is mined and processed,” said Timothy Cotton, Novaphos CEO. “Phosphate is one of the most valuable minerals in the world, yet the way it is currently being produced is broken. For years, the phosphate industry has seen minimal technical change. The result is that current production processes are wasteful and destructive to the environment.”

Novaphos said the announcement follows a series of developments driving company plans to scale its operations in 2024. It recently added Navy Vice-President Admiral Andrew “Woody” Lewis (ret.) as Chief Development Officer and former EuroChem executive Evgeny Fedoseev as Chief Operating Officer (GM Dec. 15, 2023).

Privately-owned Novaphos (formerly JDCPhosphate) has developed technology allowing the use of low-quality phosphate rock to make high-quality phosphoric acid. It says the process is scalable, energy-efficient, and produces a useful construction aggregate byproduct – J-Rox™ – instead of phosphogypsum.

ENEOS Invests in US Gulf Low Carbon Project

Ammonia, Australia, Carbon, Hydrogen, Japan, Mexico, Middle East, News Briefs, U.S. Gulf

Japan’s ENEOS Corp. on Jan. 11 announced that it has made an equity investment in MVCE Gulf Coast LLC, which seeks to produce low carbon hydrogen, ammonia, and methylcyclohexane (MCH) in the US Gulf of Mexico. ENEOS wants to participate in a US-to-Japan hydrogen chain. Further details were not immediately available.

ENEOS said it is investigating the joint production of hydrogen with business partners in Asia, the Middle East, and Australia, as well as the production and transportation of MCH, a type of organic hydride that can be produced by reacting toluene with hydrogen. MCH is a medium for the transport and storage of hydrogen.

Through its equity participation, ENEOS said it will verify the commercial feasibility of manufacturing cost-competitive and clean hydrogen in the Gulf of Mexico and exporting MCH to Japan. ENEOS began operating a MCH demonstration plant in Brisbane, Queensland, Australia in early 2023.

ENEOS said MVCE (Mountain View Clean Energy), Mountain View, Calif., which was established by Calgary-based Azimuth Capital Management, has extensive experience and knowledge in business areas including hydrogen and ammonia manufacture. Azimuth had not responded to inquiries at press time.

Azimuth is also an investor in Monolith, a clean technology developer based in Lincoln, Neb., which is planning an ammonia and carbon black facility in Nebraska (GM July 15, 2022).

Intrepid Receives $45 M Payment

News Briefs, Potash

Intrepid Potash Inc. on Jan. 2, 2024, received a payment of $45 million from XTO companies, subsidiaries of ExxonMobil (GM Dec. 15, 2023), which was expected and in addition to an initial payment of $5 million received from XTO on Dec. 12, 2023.

In total, Intrepid expects to pull in some $100 million or more for an amendment to its Designated Potash Area (DPA) that will allow XTO Holdings and XTO Delaware Basin to pursue drilling activities within the DPA.

Between Dec. 12, 2023, and Jan. 2, 2024, Intrepid received $50 million and will receive another $50 million as an “access fee” at a later date. XTO would also pay up to a maximum amount of $100 million as an “access realization fee” in the event of certain additional drilling activities.

“This amendment furthers our goal of cooperation and the efficient co-development of resources within the DPA,” said Bob Jornayvaz, Intrepid Executive Chairman. “The consideration received under the amendment brings us closer to our goal of creating sustained value for shareholders and will be instrumental in allowing us to pursue opportunities across our asset base.”

Enviro Group Drops Suit Against Nutrien AG

News Briefs

Central Valley Eden Environmental Defenders LLC has agreed to drop legal claims that fertilizer company Nutrien AG Solutions Inc. polluted nearby waterways, according to a stipulation for dismissal filed in federal court in California, according to Bloomberg Law.

Central Valley Eden Environmental Defenders LLC claimed in its December 2022 lawsuit that Nutrien stores industrial materials outdoors, which exposes them to stormwater and allows polluted water to flow into the lower Mokelumne River near Stockton, in the Central Valley. The contamination violates Nutrien’s Clean Water Act permits, the group said.

The parties filed the joint stipulation for dismissal with prejudice on Jan. 8. Attorneys for both parties did not respond to inquiries about the dismissal.

No Injuries Reported from Two NH3 Leaks

Ammonia, News Briefs, U.S.

No injuries were reported from two recent anhydrous ammonia leaks at a Walmart Distribution Center in Butler Township, Pa., on Jan. 10 and at the Schick Corp. in Milford, Conn., on Jan. 11, according to the Republican Herald and the Patch news network, respectively.

Some 100 gallons leaked at the Walmart site due to a broken valve but were contained. In Milford, a tanker truck driver quickly isolated a leaking hose. Some seven gallons were collected in a containment area.