All posts by hlancey@bloomberg.net

TFI Speaks Out Against Tightening NAAQS

The Fertilizer Institute (TFI) on Nov. 8 reiterated its opposition to the EPA’s proposed rule to tighten national ambient air quality standards (NAAQS) for fine particulate matter (PM2.5), and voiced support for legislation to prohibit EPA from altering the standard at this time.

“TFI and the fertilizer industry remain firmly opposed to EPA’s proposed rule to lower the threshold standards for fine particulate matter,” said TFI President and CEO Corey Rosenbusch. “And we aren’t alone. TFI joined over 70 other industry groups in a letter articulating the devastating economic impact this rule would have, as well as the faulty reasoning behind the change.”

TFI said that according to the government’s own data, PM2.5 emissions have declined by more than 40% over the past 20 years and continue to go down. Additionally, the current rule balances environmental protection with robust commercial and industrial activity.

“Only two years ago the EPA confirmed that the current standard is protective of public health and the environment,” Rosenbusch continued. “They have not provided any reasoning as to what has changed in the past two years aside from the fact that these emissions continue to decline.”

TFI said the current PM NAAQS was set in 2012 under the Obama administration and has dramatically reduced air pollution across the county. As NAAQS levels have continued to drop and industry adapts through technology and innovation, TFI warned that further air quality controls will not be achievable and will have the unintended consequence of reducing domestic fertilizer production if attainment in the US becomes overly burdensome.

“The need to strengthen the domestic fertilizer industry has been made clear by multiple global crises and echoed by the Biden administration, and now is not the time to hamstring fertilizer production by making new production facilities or the expansion of existing production more difficult or, in many instances, impossible,” Rosenbusch said.

“The fertilizer industry prides itself on innovation and sustainability, and environmental stewardship is a cornerstone of how our industry operates, from production to farmer use,” he concluded. “TFI does not support lowering NAAQS levels and instead believes that the EPA should retain the current PM NAAQS.”

Gowan Buys Blytheville Plant from Winfield United

Gowan Milling, Yuma, Ariz., a wholly-owned subsidiary of Gowan Group, on Nov. 15 announced the expansion of its crop protection chemical manufacturing capacity by acquiring a WinField United facility in Blytheville, Ark.

Mike Callahan will head up the Blytheville location, which has been rebranded as Gowan Milling Blytheville. He was most recently General Manager of Gowan Milling’s Yuma location.

“This facility acquisition is a strategic move that reinforces our dedication to our customers and the industry,” Callahan said. “It will enable us to deliver the highest quality crop protection chemicals, expand our product offerings, and improve our overall service. We look forward to this new chapter of growth and innovation.”

Gowan said this investment will grant it the proximity to key markets needed to service its existing customer base on a larger scale while maintaining the hallmark of its historic manufacturing services – safety, quality, reliability, and flexibility. It said this facility offers diverse capabilities, including herbicide pan granulation, extruded granulation, and the production of suspension concentrate fungicides and insecticides.

Founded in 1962, the Gowan Group is a global, family-owned agricultural solutions business headquartered in Yuma. It specializes in developing, marketing, and processing agricultural inputs such as crop protection products, seeds, and fertilizers.

Hensall Co-op Acquires Minn-Dak Growers

Hensall Co-op, a farmer-owned and independent agricultural cooperative based in Hensall, Ont., announced on Nov. 15 that it has acquired Minn-Dak Growers Ltd. (Minn-Dak), a processor and marketer of specialty crops in the Northern Plains with locations in Grand Forks, N.D., Donaldsonville, Minn., and Dickinson, N.D.

“We eagerly anticipate partnering with the Minn-Dak team, combining our expertise to provide growers with an expanded portfolio of value-added crop opportunities,” said Grad Chandler, CEO of Hensall Co-op. “Minn-Dak’s research focus aligns seamlessly with our strategy to enter new markets with customized products, fostering growth in existing markets and broadening Hensall Co-op’s global footprint.”

Minn-Dak has been in business for more than five decades, and currently supplies high quality mustard and buckwheat ingredients to the global food industry.

“Harris Peterson, my grandfather, founded Minn-Dak with a vision to cultivate a market for local farmers,” said Jeremy Peterson, Vice President of Minn-Dak. “The acquisition by Hensall Co-op aligns seamlessly with our commitment to creating value-added opportunities for specialty crop farmers, ensuring the continuation of his vision.”

Established in 1937, Hensall Co-op is the eighth largest non-financial cooperative in Canada, with over 6,000 farm member-owners. The company is a full supply chain provider of edible beans, and also offers products and services in energy, animal nutrition, grain and feed ingredient marketing, food and ingredient manufacturing, and global freight forwarding and logistics.

Unigel Reverses Camaçari Suspension Plans

Brazil’s Unigel Participacoes on Nov. 14 said it will reverse the prior notice to employees at its Camaçari nitrogen plant in Bahia that it would suspend production at the plant (GM Nov. 10, p. 32).

Unigel said it continues to negotiate to make the unit’s operation viable and remains confident that a good solution will be reached by the parties. The company said the earlier suspension announcement was made due to macroeconomic market challenges. Unigel President Roberto Noronha Santos said the petrochemical sector is going through the worst crisis in years.

“In parallel to this, competitive conditions in the international market make everything even more complex,” Santos said. “Even so, we never gave up and remained firm in our intention to continue producing nitrogen fertilizers, a raw material necessary for the country. Workers will be maintained and we will resume production at Camaçari as soon as possible.”

Unigel said negotiations continue with Petrobras focusing on projects for the production of renewable energy and fertilizers.

Hungary’s Nitrogenmuvek Softens Shutdown Pledge

Hungarian nitrogen company Nitrogenmuvek Zrt will not close down entirely and vows to continue a legal fight against the government due to new carbon taxes, according to CEO and owner Laszlo Bige, according to a Nov. 15 Bloomberg report citing Agrarszektor, a news website. Bige also now promises no layoffs.

Just a day earlier, Bige had told the same news media that the company was closing down fertilizer production indefinitely, citing the rise in taxes, and following a series of setbacks due to gas prices and pressure from Hungarian authorities. At the time, he said that “due to the drastic deterioration of the business environment, the company does not plan to restart.”

The company is losing €40/mt on each ton of fertilizer it produces due to higher energy prices, rising fees, and the carbon tax, according to a report by bne IntelliNews.

Bige maintains that the pressure his company has faced in recent years in the form of taxes, fines, prosecution, etc. (GM Dec. 10, 2021; Oct. 22, 2021; Dec. 18, 2020) all arise from his opposition to Hungarian Prime Minister Viktor Orban. 

Nitrogenmuvek produces anhydrous ammonia, CAN, AN, urea, and UAN, and is one of the biggest producers of ammonia and CAN in eastern Europe.

Bangladesh Urea Plant Completed

Bangladesh Prime Minister Sheikh Hasina on Nov. 12 inaugurated the country’s largest urea plant, the Bangladesh Chemical Industries Corp.’s (BCIC) Ghorashal-Polash Urea Fertilizer Project (GPUFP) in the Narsingdi district in central Bangladesh, some 51 miles northeast of the capital of Dhaka.

The plant has an estimated daily production capacity of 2,800 mt of urea and 1,600 mt of ammonia, and will use natural gas feedstock. A consortium of Japan’s Mitsubishi Heavy Industries Ltd. (MHI) and China National Chemical Engineering Seventh Construction Co Ltd. (CC7) is the EPC contractor for GPUFP. The project cost is put at $1.2 billion.

State-run BCIC first announced the project in October 2018, and originally was targeting the plant to be operational by 2022 (GM Dec. 13, 2019; Oct. 19, 2018). The new facility is replacing two of BCIC’s oldest plants, Urea Fertilizer Factory Ltd. and Polash Urea Fertilizer Ltd.

The plant will become the first urea plant in the country to capture all of the CO2 from the primary reformer flue gas, while other liquid effluent will be treated prior to discharge outside the plant site. By using the captured CO2, the production of urea will reportedly be increased by about 10%.

Osmond Studies Spanish SOP, Materials Project

Junior mine developer Osmond Resources Ltd., based in Melbourne, Australia, on Nov. 15 announced that it has entered into a binding Earn-in Agreement with Global Mining Enterprises Pty Ltd and Omnis Minera SL, a company incorporated under the laws of Spain and a wholly-owned subsidiary of GME, for Osmond to be granted the exclusive right to acquire up to 100% of the Iberian One Project, located in Spain.

Prospective products from the Project include sulfate of potash (SOP), alumina, and graphite. Both aluminum and natural graphite are included on the European Union’s 2023 Critical Raw Materials List.

“This project represents an exciting opportunity for Osmond to fast-track the development of a European fertilizer and critical materials’ project,” said Osmond Executive Director Andrew Shearer. “With over 190 historic drill holes and two historical mines, the project is well delineated, meaning we can fast track resource definition with a view to focusing on early mining studies.”

“The earn-in terms are also very advantageous for shareholders, with expenditure focused on project delivery and Osmond having sole discretion at each relevant milestone whether or not to progress,” Shearer added. “This has the potential to be transformative to Osmond and to deliver serious value to shareholders.”

The staged earn-in arrangement consists of an initial exclusivity payment of $75,000 to undertake due diligence over a six-month period. Subject to completion of three development stages of the project and at Osmond’s discretion, Osmond can acquire a 100% interest in the Project by issuing GME up to a total of 65,000,000 ordinary shares in OSM and 5,000,000 options.

On its website, Osmond lists current projects in Australia as pursuing nickel, gold, copper, and rare earth minerals, while the Salt Wells Project in Nevada would produce lithium and boron.

Turkey Seeks to Lift Sanctions on Belarus Potash

Turkey said it will work on lifting sanctions on Belarusian potash, according to an Interfax report earlier this week, citing Belarus Minister of Foreign Affairs Sergei Aleinik, speaking on Belarusian state-run television channel ONT.

Aleinik said Turkey has fully reaffirmed its readiness to facilitate the lifting of restrictions on potash fertilizers, “which are the foundation of food and agricultural security, especially in the Global South.” According to the report, Belarus meets 80% of Turkish demand for potash fertilizers.

Russian Farmers Increase Fertilizer Purchases

Russian farmers purchased 2% more fertilizers than planned from June through October, buying almost 4 million mt, according to an Interfax report, citing an Agriculture Ministry press release.

The ministry said seasonal fieldwork is concluding and fertilizer is being acquired steadily, despite certain difficulties, and new purchases are also underway for spring planting in 2024. According to the ministry, the price situation on the domestic fertilizer market is “stable” and the price of most types of fertilizer is currently “lower than last year.”

Agriculture Minister Dmitry Patrushev said regulatory measures [export quotas] on the fertilizer market are in effect until the end of November, and “given their effectiveness,” Russia’s Industry and Trade Ministry has proposed extending export quotas for nitrogen and complex fertilizers for another six months, to May 31, 2024 (GM Nov. 3, p. 31).

The ministry has proposed a quota amount of 16.95 million mt for the Dec. 1 to May 31 period, according to an earlier Interfax report.

OCP Sets Fertilizer Loading Record at Jorf Lasfar Port

OCP Group SA last month set a new loading operation record at the port of Jorf Lasfar, Morocco, with the loading of the baby cape bulk carrier “Patricia Oldendorff.”

According to a Morocco World News report, the loading of the vessel, which has a cargo capacity of 100,000 mt, took place on Oct. 24, beating the previous loading record of 75,000 mt of fertilizers. “Patricia Oldendorff” left Jorf Lasfar port on Nov. 1 heading for India. The 75,000 mt record cargo was shipped to Brazil.