All posts by mickeybarb@charter.net

Novatek Inks MOU for Green Complex

Russian natural gas and LNG producer Novatek said on June 4 it has signed a Memorandum of Understanding (MOU) with Sberbank and Gazprombank on financing the construction of a green chemical plant on the Yamal Peninsula. The parties intend to organize financing to construct a plant near Sabetta to produce low-carbon ammonia and hydrogen, as well as other gas chemistry products that reduce greenhouse gas emissions into the atmosphere.

“Ammonia is a promising low-carbon fuel in great demand in the chemical industry, and an efficient transport carrier of hydrogen,” said Leonid Mikhelson, Novatek Chairman. “The company is considering various concepts for a gas chemical plant in order to select the most efficient option. We plan to capture the carbon dioxide emitted from the ammonia production by injecting the CO2 into underground reservoirs to ensure the supply of clean energy to Europe and the Asia-Pacific region.”

Novatek shares are listed in Russia on the Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK.”

Utah Organic Phosphate Mine Complete

London-based Keras Resources plc on June 9 announced that construction of the processing plant at its Diamond Creek organic phosphate mine in Utah has been completed and commissioning has commenced. The company said once at steady-state operational capacity, which is expected to be achieved by the end of June, the plant will produce a range of organic phosphate products for sale directly into the North American organic fertilizer market.

“I am very pleased to see the processing plant build completed, and we now look forward to steady-state production post the commissioning period,” said Russell Lamming, Keras CEO. “Diamond Creek is the one of the highest-grade organic phosphate mines in the U.S., and installing this plant will enable us to extract maximum value and sell a range of fully certified, high-quality products into a growing organic fertilizer market.

“All credit to our team on the ground in Utah who have worked tirelessly to complete the processing plant build under testing conditions during the global pandemic,” he continued. “We look forward to getting this year’s mining campaign underway during the second quarter of 2021 and reporting on our progress in due course.”

Diamond Creek is owned by the company’s 51 percent subsidiary, Falcon Isle Holdings LLC, Salt Lake City (GM Aug. 14, 2020).

FuelPositive Files for Green Tech Patent

FuelPositive Corp., Toronto, said on June 8 it has filed for patent protection for the company’s “Modular Transportable Clean Hydrogen-Ammonia Maker” with the U.S. States Patent and Trademark Office.

“Our carbon-free ammonia (NH3) technology will offer tremendous value by using less energy than incumbent technologies and will reduce processing costs through the reduction of operating pressure and temperatures,” said Ian Clifford, FuelPositive CEO.

“This milestone for FuelPositive further reinforces the potential for the global implementation of our technology, and we are working rapidly toward commercialization, with Phase 2 commercial demonstration systems well on their way to being realized,” Clifford continued.

In May, FuelPositive announced it was selected National Compressed Air Canada Ltd. (NCA), Mississauga, Ont., to undertake the manufacturing of the company’s Phase 2 Hydrogen-Ammonia Synthesizer commercial prototype systems for Carbon-Free Ammonia (NH3) production (GM May 28, p. 33).

APC to Open Office in Brazil

The Arab Potash Co. (APC), Amman, is expected to open an office soon in Brazil due to high demand, according to a report in Petra, Jordan’s News Agency, citing comments by APC CEO Maen Nsour during a visit to an APC factory at Ghour Al Safi with Brazilian Ambassador to Jordan Ruy Amaral. He said Jordanian potash exports to Brazil increased to 154,000 mt in 2020 from 2019’s 42,000 mt, with larger export quantities expected by the end of the year.

Federal Agencies to Redefine WOTUS; ARA Urges Common Sense, Sound Science

The U.S. Environmental Protection Agency (EPA) and Department of the Army on June 9 announced their intent to once again revise the definition of Waters of the U.S. (WOTUS), the controversial regulatory framework for Clean Water Act (CWA) enforcement that has faced nearly constant legal challenges in recent years.

The agencies said the revisions are needed to better protect the country’s water resources after a “broad array of stakeholders” complained of destructive impacts to critical water bodies in the wake of the 2020 Navigable Water Protection Rule (NWPR), the Trump administration’s replacement rule that significantly scaled back the 2015 WOTUS definition drafted by the Obama-era EPA.

The NWPR was identified in President Biden’s Executive Order 13990, which directs federal agencies to review all existing regulations, orders, guidance documents, policies, and any other similar agency actions promulgated, issued, or adopted between January 20, 2017, and January 20, 2021. The U.S. Department of Justice on June 9 filed a motion requesting remand of the NWPR.

“After reviewing the Navigable Waters Protection Rule as directed by President Biden, the EPA and Department of the Army have determined that this rule is leading to significant environmental degradation,” said EPA Administrator Michael S. Regan. “We are committed to establishing a durable definition of ‘Waters of the United States’ based on Supreme Court precedent and drawing from the lessons learned from the current and previous regulations, as well as input from a wide array of stakeholders, so we can better protect our nation’s waters, foster economic growth, and support thriving communities.”

Jaime A. Pinkham, Acting Assistant Secretary of the Army for Civil Works, said the NWPR has resulted in a 25 percent reduction in determinations of waters that would otherwise be afforded protection under the CWA. The lack of protections is particularly significant in arid states, the agencies said, where nearly every one of more than 1,500 streams assessed has been found to be non-jurisdictional. The agencies said they are also aware of 333 projects that would have required Section 404 permitting prior to the NWPR, but no longer do.

The agencies said they intend to initiate a new rulemaking process that builds upon the pre-2015 rule, the Obama-era Clean Water Rule, and the Trump-era NWPR. High on the list of objectives is protecting water resources consistent with the CWA while also considering how water uses support key economic sectors; a practical implementation approach for state and tribal partners; and seeking input from landowners, the agricultural community, states, tribes, local governments, community organizations, environmental groups, and disadvantaged communities with environmental justice concerns.

“Together, the Department of the Army and EPA will develop a rule that is informed by our technical expertise, is straightforward to implement by our agencies and our state and Tribal co-regulators, and is shaped by the lived experience of local communities,” Pinkham said.

Both The Fertilizer Institute (TFI) and the Agricultural Retailers Association (ARA) were strong supporters of the NWPR upon its publication last year (GM Jan. 24, 2020), and were highly critical of the 2015 rule. ARA President and CEO Daren Coppock issued a statement on June 9 defending the NWPR, and urging EPA and the Army to rely on science and common sense when considering any WOTUS changes.

Coppock said the statutory authority under the CWA originally applied only to navigable water, but that definition expanded over time, culminating with the 2015 rule which “grossly and inappropriately expanding the waters included under CWA jurisdiction.” He said the NWPR “utilizes a much more practical approach through a cooperative federalism system where the state agencies are co-equal regulatory partners with the EPA. This setup pulls back on mission creep and gives the states a more meaningful role in regulating their waters.”

Coppock said the NWPR also more closely follows Supreme Court precedent and the jurisdiction laid out in federal law by Congress, and removed a lot of uncertainty for landowners by more clearly defining inclusions and exclusions.

“I’m hopeful, based on Administrator Regan’s track record and statements, that science will rule the day as EPA reviews this rule, and that the agencies will seek to hear from all stakeholders, including property owners, and try to find practical solutions that are in the interest of all concerned and consistent with the enabling statute,” Coppock said.

All attempts to redefine WOTUS during the previous two administrations have been contentious. The 2015 rule was almost immediately challenged by 31 states and numerous stakeholders in multiple lawsuits, prompting the Sixth Circuit in October 2015 to issue a nationwide stay (GM Oct. 19, 2015). That stay was lifted in January 2017 when the U.S. Supreme Court determined that review of the rule falls within the jurisdiction of the district courts.

The Trump administration then tried to delay the 2015 rule’s compliance deadline while it worked on a new version (GM June 30, 2018), but those delays were challenged in court (GM Aug. 24, 2018). Subsequent decisions by a number of U.S. District Courts left a patchwork of enforcement, with the 2015 rule enjoined in 28 states and in effect for the remaining 22 states.

The Trump administration then announced in September of 2019 that it was repealing the 2015 rule (GM Sept. 13, 2019), with plans for EPA and the Army to recodify the “longstanding and familiar regulatory text” that existed prior to the 2015 rule, which they said would end the “regulatory patchwork” that has created uncertainty for CWA enforcement across the U.S. This effort produced the NWPR, which was heavily criticized by environmental groups who said it “effectively guts” the CWA (GM Sept. 24, 2020).

CSX Corp. – Management Brief

CSX Corp., Jacksonville, on June 7 announced the appointments of Mark K. Wallace as Executive Vice President, Kevin S. Boone as Executive Vice President of Sales and Marketing, and Sean R. Pelkey as Vice President and Acting CFO.

In his new role, Wallace will focus on special projects and initiatives supporting President and CEO James Foote. He was formerly Executive Vice President of Sales and Marketing. During his long career in the railroad industry, he also worked for Canadian Pacific and Canadian National.

Boone, who most recently served as Executive Vice President and CFO, joined CSX in September 2017 as a Vice President responsible for investor relations. He then was appointed Vice President of Marketing and Strategy.

CSX said Boone has over 18 years of experience in finance, mergers and acquisitions, and accounting, primarily focused on the transportation and industrial sectors. He earned a bachelor’s degree in accounting from the University of Florida and an MBA from the University of North Carolina at Chapel Hill’s Kenan-Flagler Business School.

Pelkey joined CSX in 2005, and most recently served as Vice President, Finance and Treasury. He has over 16 years of experience in finance and capital management. He holds an MBA from the University of Florida and a bachelor’s degree in sociology from Boston University.

Kore Potash plc – Management Brief

Junior producer Kore Potash plc, London, which is developing the Kola and Dougou Extension Potash Projects in the Sintoukola Basin, Republic of Congo, reports that Jean-Michel Bour has been appointed CFO. As previously reported (GM March 19, p. 27), CFO Andrey Maruta decided to step down from the CFO role effective June 10, 2021, to pursue other opportunities, but will remain available to facilitate a smooth transition.

Bour will report directly to CEO Brad Sampson and is not joining the company’s board.

Bour has a bachelor’s degree in Business Studies (Hons) with over 21 years’ experience in the mining and oil & gas sectors. This includes a long period at BHP, where he held several management and leadership roles. He also worked as a consultant for Rio Tinto and Anglo American. He holds dual French and English citizenships and has lived in Nigeria, the Republic of Congo, Cameroon, the Netherlands, France, the U.S., and Singapore.

Yara International – Management Brief

Yara International ASA President and CEO Svein Tore Holsether has been elected as Chairman of the Board of the Confederation of Norwegian Enterprise (NHO) for a two-year period. The NHO is Norway’s largest organization for employers, with a membership of 25,600+ companies ranging from small family-owned businesses to multinational companies in most sectors. It is a leading voice of business and industry in the country.

“It is an honor to be elected President of the Confederation of Norwegian Enterprise,” said Holsether. “The green transformation presents enormous opportunities for Norwegian businesses and industry. Norway has access to green energy sources, but we must act quickly.

“The next four years will determine the next 40 years,” he added. “I believe that large companies have a special responsibility to take the lead and help smaller and medium-sized companies in this transition. I want to dedicate my time as President to promoting sustainable economic growth, job creation, and green export-oriented industry.”

Kalium Lakes Ltd. – Management Brief

Kalium Lakes Ltd., Balcatta, Western Australia, which is developing the Beyondie Sulfate of Potash Project, said on June 9 that CFO and Joint Company Secretary Antony Beckmand has resigned, citing a personal matter that requires his attention and presence with family overseas. While he will relocate back to Norway in June, he will continue to provide his support and services remotely during the coming months.

The company said the process to appoint a successor is already well advanced, and that Beckmand will work with the CEO and Board to ensure an orderly transition.

Yara International – Management Brief

Yara announced June 10 that Pablo Barrera, Executive Vice President, Communications & Procurement, and member of the Yara Group Executive Board, has been seconded to the IMAGINE Food Collective, where he will work with global companies and stakeholders to help drive systemic change of the food value chain. IMAGINE is a social venture founded in 2019 to mobilize industry leaders around 2030 Sustainable Development Goals.

“The transformation of global agriculture depends upon close collaboration across the whole value chain, from input companies to retailers. Having Pablo Barrera lead this effort with IMAGINE offers a unique opportunity to contribute to nature-positive food production and consumption,” said President & CEO of Yara Svein Tore Holsether.

Barrera will take up his new position effective July 1, and a process to identify his successor has been initiated.