All posts by hlancey@bloomberg.net

NH3 Leak Reported at Simplot Potato Facility

Ammonia, News Briefs, U.S.

An ammonia leak occurred at a J.R. Simplot Co. potato processing facility in Grand Forks, N.D., around 7:30 p.m. on April 19. The leak prompted the shutdown of nearby Gateway Drive and prompted a brief shelter-in-place for nearby residents, according to the local media.

“The ammonia leak occurred from our refrigeration system at our potato processing plant in Grand Forks because of a broken valve,” a company spokesperson told Green Markets. “Our facility’s ammonia detectors alerted personnel of the release and we were able to evacuate everyone safely.”

The spokesperson said the company immediately evacuated the facility and notified the fire department, who were able to identify the exact location of the release and close the valve. No injuries were reported, and the shelter-in-place order was lifted several hours later.

“Our Grand Forks facility has a comprehensive safety and environmental system and follows all OSHA process safety management (PSM) standards,” the company spokesperson said.

Pesticide Shield Law Advances in Missouri

Florida, News Briefs, U.S.

A “pesticide shield” law that would protect manufacturers from lawsuits alleging they failed to warn customers their product could cause cancer has advanced in Missouri. Similar legislation has been advancing in Iowa and Florida (GM April 19, p. 1; April 12, p. 27), but the provision narrowly failed in the Idaho Senate.

The bills would grant immunity to pesticide companies from civil lawsuits related to damages caused by US EPA-approved pesticides. Bayer, which produces Roundup with the active ingredient glyphosate, has lobbied for the bills and argues that Americans should be able to trust the EPA label as enough protection.

“A procedural vote passed in the full Missouri House, indicating progress, but further steps are required before the bill reaches the Senate ahead of the end of the scheduled legislative session in about a month,” a spokesperson for Modern Ag Alliance, a Roundup advocacy group, told Green Markets on April 19.

“The legislative situation remains active in the Iowa House in the last remaining dates of the session,” the spokesperson added. “We hope to get a vote along with several other must-pass priorities for members.”

FTC Noncompete Ban Quickly Challenged

News Briefs, Texas, U.S.

The Federal Trade Commission voted April 23 to adopt a near-total ban on noncompete provisions that prohibit workers from switching jobs within an industry for a certain period of time. Such agreements affect roughly one in five American workers and are commonly used by businesses to protect trade secrets and other confidential information.

Ryan LLC, a Dallas-based tax services provider, sued the FTC in the US District Court for the Northern District of Texas just hours after the vote, according to Bloomberg Law, arguing the FTC lacks authority to issue rules related to unfair methods of competition.

“To promulgate such sweeping rules, an agency must have clear and unmistakable authority,” Ryan argues in its complaint. The powers granted to the FTC under the FTC Act “do not come close to that standard,” the complaint adds. Nullifying noncompetes would put Ryan’s confidential business information at risk, the company argues. The Chamber of Commerce filed a separate suit against the rule on April 23.

Ryan’s legal team includes Eugene Scalia, former US Secretary of Labor during the Trump administration and a Gibson Dunn attorney. The case is assigned to Judge Ada Brown, an appointee of former President Donald Trump.

The complaint mirrors arguments made by the FTC’s Republican commissioners Andrew Ferguson and Melissa Holyoak in opposing the rule. Holyoak, the former Solicitor General of Utah who joined the agency last month, said she was opposed to the rule because there was “no clear congressional authorization” for the FTC to issue it.

The agency’s Democrats argue the FTC does have authority to issue rules defining unfair methods of competition. The final noncompete ban cites a 1973 case that upheld the agency’s rulemaking authority, rejecting claims that the rule represents a “major question.”

“Arguing that the FTC lacks this authority ignores the most straightforward reading of the text,” Chair Lina Khan said at the commission’s open meeting, referring to the 1914 FTC Act. The FTC estimates the noncompete ban would increase US earnings by at least $400 billion over the next 10 years.

Minnesota Legislature Weighs Fertilizer Pollution Tax

News Briefs, U.S.

A $0.40 per ton tax on fertilizer has passed the Minnesota House Agriculture Committee, according to the Minneapolis Star Tribune. If enacted the money would go to clean up nitrate pollution and provide water to some 9,000 residents of eight southeastern Minnesota counties – Dodge, Goodhue, Fillmore, Mower, Olmstead, Wabasha, Houston, and Winona.

In November, the US EPA ordered the state to act to address the pollution found in private wells in those counties. The money would redirect an existing $0.40 tax on fertilizer that currently goes to fund a state research program to help increase crop yields. The current tax raises about $1.2 million per year and is set to expire in 2025.

“This is a disingenuous attempt to hijack the fund and use it somewhere else,” said State Rep. Steven Jacob (R-Altura), cited by the newspaper. However, supporters of the bill say that those who use the product that sometimes causes the pollution should pay some of the cost of cleanup.

Regardless whether the tax passes, the House and Senate plan to spend $2-$3 million over the next year to start testing wells and provide those impacted with either bottled water or filtering systems, according to the newspaper. However, state agencies estimate the cost could be as much as $7 million, depending on the amount of contamination.

Pursell Files Patent for Coating Technology

News Briefs, U.S.

Pursell Agri-Tech, Sylacauga, Ala., announced on April 22 that it has filed a non-provisional patent with the U.S. Patent and Trademark Office (USPTO) to protect Intellectual Property related to its biodegradable coating components and application process.

The company is currently in end-stage research and development of a novel coating technology that will enable commercialization of controlled-release fertilizer (CRF) products meeting European Union biodegradability standards.

Pursell said its patented, lower-temperature coating process enables the incorporation and survival of best-in-breed biostimulants and microbes, allowing Pursell to deliver a biodegradable CRF product with nutrient uptake and a biostimulant package tailored to a crop’s specific needs.

“Our current coating technology utilizes an extremely thin membrane, which already decreases the amount of polyurethane used in the process. This biodegradable technology, coupled with biostimulant inclusion, has the potential to be a true game-changer for both Pursell and the fertilizer industry at large,” said Joe Brady, Pursell CFO and Sustainability Initiatives Lead. “When introduced, our biofortified, biodegradable CRF products will offer the broad benefits of our current products, without any of the potential effects of non-biodegradable coatings.”

Initial biodegradable product field trials are being conducted this spring in university and industry grower trials in the Midwest, Southeast, and Canada, targeting corn production.

Hacker Attack Reported at Grodno Azot N Plant

News Briefs, Nitrogen

The Belarusian Cyber-Partisans, an activist hacker group, told The Associated Press that it has infiltrated the computers and systems at the Grodno Azot nitrogen complex in Belarus. While the group said its actions have done considerable damage, it maintains that since the plant deals with dangerous chemicals, the attack was designed only to impact documentation.

Cyber-Partisans is demanding the release of political prisoners stemming from the disputed August 2022 election in Belarus, which returned President Alexander Lukashenko to a sixth term. Several thousand were arrested in the wake of the election, with many still in prison.

AMAZONE Acquires Brazil’s MP AGRO

Brazil, Germany, News Briefs, South America

German-based agricultural machinery manufacturer AMAZONE reported that it has acquired Brazilian fertilizer spreader specialist MP AGRO. AMAZONE, which employs more than 2,500 at nine production sites, called the deal a milestone as it signals its further internationalization and growth in South America. The deal is subject to official approval.

“We will be relying on the MP AGRO team by using both their expertise as well as their closeness to the local market, so that we at AMAZONE can bring our technology to Brazil,” said AMAZONE owners Christian Dreyer and Dr. Justus Dreyer.

They said under the proven leadership of Douglas Peccin, MP AGRO’s existing workforce will remain unchanged and the business will continue to operate as usual. AMAZONE said MP AGRO brings with it a young, highly motivated and dynamic team that focuses on fertilizer application and has in-depth market know-how in Brazil.

MP AGRO was founded in 2012 in Ibate in Sao Paulo State. AMAZONE is a fourth-generation family-owned business dating back over 140 years. Its ag machinery range includes soil tillage implements, seed drills, fertilizer spreaders, plant protection equipment, and hoes.

Amaggi, Others Launch Fertilizer Producer

Brazil, News Briefs, Potash

Amaggi, one of Brazil’s biggest agriculture groups and one of the world’s largest privately held soybean producers, has partnered with a large rural cooperative and others to launch a new fertilizer producer, according to Bloomberg, citing a statement from Tello, the new venture.

The partners plan to spend $23 million to build the first plant in the Sao Paulo state countryside. It will have capacity to produce 200,000 mt/y and start production in 2025. More details as to the kind of fertilizer were not immediately available.

Tello expects the first plant to reach revenue of $97 million by 2026. A second plant is planned for the major grain growing state of Mato Grosso. In addition to Amaggi, partners in Tello include agriculture cooperative Coopercitrus, Souza e Lucas Participações, Viola Participações, and cattle feed producer Tecnobeef.

Amaggi is also involved in commodities trading, logistics operations, and energy production. It has a binding offtake agreement with junior miner Brazil Potash for 500,000 mt/y, as well as a marketing agreement to sell Brazil Potash’s remaining 1.9 million mt/y, and a barge transportation agreement to ship the initial planned 2.4 million mt of potash to inland ports close to major farming regions (GM Oct. 7, 2022).

Brazil Potash recently reported that it has procured its mine installation license and is proceeding with construction (GM April 12, p. 1).

Millennial Potash Completes PEA on Banio Project

Africa, News Briefs, Potash, Vancouver

Junior miner Millennial Potash Corp., West Vancouver, B.C., reported that it has completed a preliminary economic assessment (PEA) on its Banio Potash Project in Gabon in West Africa. The PEA was completed by Micon International in partnership with Agapito Associates Inc.

“We are extremely pleased with the results of the PEA on the Banio Potash Project and it has confirmed our belief that the project is very robust and has significant economic potential,” said Farhad Abasov, Millennial Chair. “The capex for the 800,000 mt/y optimal case is a very competitive $480 million and the opex at approximately $61/mt MOP reflects an expected overall low-cost structure, which would make Millennial’s Banio Potash Project competitive with the lowest-cost producers in the sector.”

At a production rate of 800,000 mt/y, the estimated life of the mine is 56 years. The project has a $1.07 billion after-tax net present value (10%) and 32.6% internal rate of return. The assumption is that most of the product would go to Brazil.

“Moving forward, the company plans to complete an mineral resource estimate (MRE) update in second-half 2024, followed by the completion of early engineering studies and the initiation of a feasibility study and environmental impact assessment,” Abazov said.

Banio is based on the MRE of 657 million mt grading 15.9% KCl and an inferred mineral resource of 1,159 million mt grading 16%. The indicated mineral resource equates to approximately 104.6 million mt of KCl, and the inferred mineral resource equates to approximately 185.3 million mt of KCl.

Solution mining has been deemed most appropriate for the project, whereby enriched brine would be pumped via pipeline to a processing plant facility at the town of Mayumba, 50 kilometers north of the project area. Processing would be via evaporation and crystallization followed by drying and compaction, producing K60 (as well as 99% pure NaCl (sodium chloride), and shipped to market from a deepwater port at Mayumba.

Deepak, Haifa Collaborate on Specialty Fertilizers

India, Israel, News Briefs, Specialty

Deepak Fertiliser and Petrochemicals Corp. Ltd.’s subsidiary, Mahadhan Agritech Ltd. (MAL), formerly known as Smartchem Technologies Ltd., and Israel-based Haifa Group, a major supplier of specialty plant nutrients, have entered into an understanding to promote specialty fertilizers in India and other countries.

“This partnership with Haifa Group is yet another milestone in MAL’s journey towards transforming agriculture in India with customized crop nutrient solutions that deliver balanced and precise crop nutrition,” said Deepak Chairman and Managing Director Sailesh C. Mehta.

Mehta said more than six million hectares of agricultural land are already supported by drip irrigation systems spread over most states in India, encompassing a wide range of crops including fruits, vegetables, sugarcane, and many other field crops, giving a ready platform to deploy the specialty water soluble fertilizers.

“The MAL-Haifa offerings will support agricultural practices that counter the vicious trend of water scarcity and also hugely enhance nutrient uptake and use efficiency in the plants,” he said. “This will directly help achieve our prime minister’s dream of doubling the farm incomes. In addition, these initiatives will also help reduce groundwater and air pollution. We believe this collaboration will bring positive change in the agricultural sector, thereby empowering farmers.”

“I am pleased that we have entered into an agreement with Mahadhan Agritech to support Indian farmers by synergizing our global expertise and resources with MAL’s on-ground expertise,” said Haifa CEO Motti Levin. “Through this collaboration, we will also take special practices and innovations of Mahadhan Agritech to other geographies in the developing world to improve yields and agri produce and quality.”