All posts by mickeybarb@charter.net

Verdesian Acquires Cytozyme Laboratories

News, News Briefs, Specialty

Specialty crop input producer Verdesian Life Sciences, Cary, N.C., announced on April 16 that it has acquired Cytozyme Laboratories Inc., Salt Lake City.

“This acquisition is a tremendous sign, not just for Verdesian Life Sciences, but for the category of nutrient use efficiency products,” said Verdesian CEO Kenny Avery. “For the past three years we have worked side by side with Cytozyme leadership as we partnered on Crop+, Seed+, and Seed+ Graphite technologies – products that have filled needs across agriculture and that have been embraced by the market. This partnership ensures that Verdesian will continue to innovate for the betterment of farmers everywhere. The knowledge and experience that Cytozyme brings to global agriculture is a tremendous asset as well.”

“For more than four decades, Cytozyme’s mission has been to help farmers achieve sustainable yields through innovative solutions,” said Cytozyme CEO Eric Baughman. “We firmly believe that Verdesian Life Sciences has the technology, capabilities, and the people to continue that mission in a way that is true to our ideals. Our two companies’ product mixes are incredibly complementary; this is a great day for growers everywhere.”

Since its start in 2012, Verdesian has grown its nutrient use efficiency technologies with the addition of products such as Avail, NutriSphere-N®, NUE-Charge G, Take Off LS, MicroSync products, Primacy Alpha, Nutri-Phite®, and Primo R1.

“This acquisition is part of Verdesian’s broader merger and acquisition growth strategy toward maintaining leadership across the nutrient use efficiency space,” said Rick Riegner, Verdesian Executive Vice President of Strategy & Business Development, “and it is further evidence of the continued embrace of products that offer sustainable solutions to farmers.”

Indian Coal-to-Urea Plant Receives Subsidy

India, News, News Briefs, Urea

India’s Cabinet Committee on Economic Affairs (CCEA) has given approval for a subsidy to promote the use of coal gasification being used to revive the Talcher Fertilizers Ltd. (TFL) urea project, according to the Press Trust of India. India has large coal reserves but is short on natural gas, a traditional nitrogen feedstock. There are currently no operational coal-to-urea plants in India.

Stamicarbon, a unit of Maire Tecnimont Group, Milan, has licensed the technology for a grassroots urea plant for TFL (GM Jan. 24, 2020). It will deliver a package for a 3,850 mt/d melt and prilling plant. At the time of the license, plant commissioning was expected in 2023. The complex is in the Angul District in the State of Odisha, in eastern India.

TFL is a joint venture between Gail India Ltd., Coal India Ltd., Rashtriya Chemicals and Fertilizers Ltd. and Fertilizer Corp. of India Ltd. (FCIL).

Despite the subsidy, other press reports have recently suggested that tensions between China and India may have slowed the project. China’s Wuhuan Engineering has the contract to build TFL’s coal gasification unit (GM Sept. 20, 2019).

C&C Ag, AMS Express in Supply Agreement

News, News Briefs, South Central, Specialty

C&C Ag Solutions LLC, Mayfield, Ky., and AMS Express Fertilizer LLC, Knoxville, Tenn., have announced a new strategic supply agreement to serve farmers in Kentucky, Tennessee, and other Mid-South states. Under the relationship, C&C’s Mutiny Crop Performance line of products becomes a key component of AMS Express’s crop input offering.

“We launched Mutiny Crop Performance to put farmers first and help them save money on high-quality products they need on almost every acre they plant,” said Patrick Conyea, C&C Ag Co-Founder. “Meanwhile, Peyton Norris has built AMS Express to save farmers money on fertilizer, so it’s just natural for us to get together. We’re excited to be connected with such a quality operation.”

“We see our alliance with C&C as another way for us to provide our customers with crop inputs that help them get the very best return on investment (ROI) possible,” said Norris. “Carrying Mutiny Crop Performance products will allow us to help our clients save even more money on every acre.”

AMS Express will now offer Mutiny’s initial product portfolio, including Artillery™ plant growth regulator and K-Bloom™ plant nutritionals, as well as Uprising™ seed treatments for soybeans and wheat and Trueblue™ drift reduction agents, surfactants, and water conditioners.

C&C Ag is an independent ag retail and agronomic consulting business serving farmers in Western Kentucky with crop inputs and crop consulting services.

AMS Express, a recent startup, is an independent distributor of a variety of agricultural and industrial chemicals.

CF Advances Green Ammonia Project with Thyssenkrupp Contract

Eastern Cornbelt, Featured, Germany, Green Ammonia, News

CF Industries Holdings Inc., Deerfield, Ill., on April 21 announced that it has signed an engineering and procurement contract with Thyssenkrupp, Essen, Germany, for the company’s green ammonia project at its Donaldsonville, La., manufacturing complex.

Thyssenkrupp will supply a 20 megawatt (MW) alkaline water electrolysis plant. CF will integrate the carbon-free hydrogen generated by the electrolysis plant into existing ammonia synthesis loops to enable the production of 20,000 st/y of green ammonia.

CF said it will manage the construction and installation, which is expected to begin in second-half 2021. When complete in 2023, CF said the project will be the largest of its kind in North America

“Today we launch a new era for CF Industries as we sign a definitive agreement to develop the first commercial-scale green ammonia project in North America,” said Tony Will, CF President and CEO. “This project highlights the competitive advantage our world-class ammonia production network offers to industries sourcing carbon-free energy and reinforces our commitment to make significant progress in reducing our carbon footprint by 2030.”

CF announced plans for the Donaldsonville green ammonia project late last October (GM Oct. 30, 2020). At the time, Will put a $100 million price tag on the project. The company said the cost of the project will fit within the company’s annual capital expenditure budget.

CF said Thyssenkrupp’s modular electrolyzer technology allows additional units to be added that leverage the Donaldsonville site infrastructure, enabling production to scale in the future.

CF said it will allocate renewable energy purchased across its network from available grid-connected sources to match 100 percent of the electricity needed by the electrolyzer to separate water into carbon-free hydrogen and oxygen.

Stamicarbon to Revamp Abu Qir Urea Unit

Egypt, Europe, News, News Briefs, Urea

Stamicarbon, Sittard, The Netherlands, a unit of Maire Tecnimont Group, reported that it has signed a contract with Abu Qir Fertilizers Co., Alexandria, Egypt, for the revamp of one of their urea melt plants (known as Abu Qir 3).

Stamicarbon will deliver the license and the Process Design Package for the revamped plant, which is expected to be operational in 2025.

The urea plant was designed in 1996 with a name plate capacity of 1,750 mt/d and a design capacity of 1,925 mt/d, according to Stamicarbon’s CO2 stripping process.

The scope of the revamp includes a capacity increase from the current production of 1,940 mt/d to 2,370 mt/d and a reduction in emissions from the melt plant absorbers to meet the local norm. The revamp will use Stamicarbon’s Evolve Capacity™ Mega Design with Medium Pressure Add-on technology.

The company said the revamp technology allows capacity expansion of a plant without having to invest in high-pressure equipment or a high-pressure CO2 compressor, while simultaneously reducing the energy consumption. The technology also allows for large scale capacity revamping while reducing energy consumption per ton of final urea product.

Midwestern BioAg to Offer Source™ Products

News, News Briefs, Specialty

Midwestern BioAg, Blue Mounds, Wisc., said on April 12 its sustainable product line will now include Source™ products from Sound Agriculture, Emeryville, Calif. Products include Bio-Cal®, OrganiCal™, and TerraNu®, for corn and soybean growers.

“We are excited for this collaboration and the benefits it will bring to our customers,” said Midwestern BioAg President and CEO Michael Birger. “For over 35 years, Midwestern BioAg has been committed to advancing soil health through innovative agricultural technology and sustainable products. Sound Agriculture’s Source will complement our sustainable product portfolio, giving growers efficient solutions and optimizing production.”

Source is a microbiome activator that gives plants access to the existing nitrogen and phosphorus in the field, improving nutrient efficiency and reducing dependency on synthetic fertilizer.

Corteva, Symborg Partner on Nitrogen Fixation Product

News, News Briefs, Nitrogen

Corteva Agriscience, Wilmington, Del., and Symborg, Murcia, Spain, have announced a multi-year agreement around a microbe-based nitrogen fixation product in the U.S., Canada, Brazil, and Argentina.

Symborg will provide an exclusive distribution license to Corteva for the endophytic bacterium Methylobacterium symbioticum, which works with the plant to secure needed nitrogen from the atmosphere. Corteva is leveraging its wide distribution network, market reach, and extensive research and development capabilities.

The Corteva product, to be branded as Utrisha™ N nutrient efficiency optimizer, works in natural field conditions, adapting to the plants’ growth needs and helping to sustainably maximize crop yield potential. It will be available for a broad range of crops, including field and row crops, sugar cane, and turf and ornamental, as well as range and pasture. The agreement also enables Corteva and Symborg to co-distribute the product in specialties crops on an exclusive basis.

“Corteva Agriscience continues to bring new and innovative solutions to market by offering natural-origin products that work complementarily with our conventional crop protection solutions, such as Optinyte™ nitrogen stabilizer,” said Susanne Wasson, President, Crop Protection Business Platform, Corteva Agriscience. “We’re excited to work with Symborg to scale up and maximize sustainable options that help farmers meet changing environmental conditions while keeping their crops productive and healthy.”

Corteva said the collaboration represents another step forward for Corteva’s expanding global Biologicals portfolio, which is dedicated to developing biostimulants, biocontrol, and pheromone products with proven, predictable performance.

Nutrien Ag Acquires Woolsey Brothers

News, News Briefs

Nutrien Ag Solutions, Loveland, Colo., acquired Woolsey Brothers Farm Supply, Vandalia, Ill., earlier this year, according to a recent issue of The Greenville Advocate. The family-owned Woolsey Brothers was started some 67 years ago by Herb and Gerald Woolsey.

It now includes three locations – Vandalia, Greenville, and Patoka. Known for its fluid fertilizers, the locations will now be adding Nutrien Ag’s broad range of products, including dry fertilizer and anhydrous ammonia. Family members will stay on board, including Co-Founder Herb, 92.

U.S. Greenlights Sale of K+S’ Americas Operating Unit

Germany, News, News Briefs, U.S.

The U.S. Department of Justice has allowed the sale of the K+S Americas operating unit, which comprises the company’s Americas salt business, to Stone Canyon Industries Holdings LLC, Mark Demetree and Partners to proceed, K+S said in a statement on April 19.

Now that K+S no longer anticipates any antitrust hurdles, it said it expects the closing of the sale to be “predominantly probable” around April 30, 2021.

The company puts the Americas unit enterprise value at $3.2 billion, corresponding to 13.4 times the 2020 EBITDA of $239 million, it said.

“Taking into account debt and cash, the purchase price is approximately €2.5 billion. Payment will be made in cash,” said K+S.

The sale of the America’s operating unit to the U.S.’ Stone Canyon Industries was agreed to last October (GM Oct. 9, 2020). Back in November, K+S Chairman Burkhard Lohr at an earnings call told analysts that U.S. antitrust clearance of the deal was “the main step K+S had to take between signing and closing”(GM Nov.13, 2020), but last month the company had expressed optimism about how the sale was progressing and anticipated closing by this summer “at the latest,” or “even before June” (GM March 12, p. 28).

The Americas operating unit mainly comprises Morton Salt (USA), acquired by K+S in 2009 for $1.675 billion (GM April 6, 2009), and K+S Windsor Salt (Canada), also acquired in 2009. The unit also comprises K+S Chile, formerly known as the Chilean company SPL, acquired by K+S in 2006.

K+S said the proceeds of the sale will be used exclusively to reduce company debt. K+S’ net debt-to-EBITDA ratio had deteriorated to 7.2x as of Dec. 31, 2020, compared with 4.9x at the end of 2019

Baader Helvea analysts see the U.S. go-ahead as “clearly positive” as closing the deal will “significantly deleverage” K+S’ balance sheet, Bloomberg reported.

Following the divestment of the Americas operating unit, the business of K+S’ Communities and Consumers business segments will be reduced, and K+S said in March it was combining the two segments into its Industrial business segment to form the newly created Industry+ customer segment. The Agriculture customer segment remains unchanged, as the sale of the Americas unit has no impact on the business.

PhosAgro Reports Increased 1Q Fertilizer Output, Sales

Ammonium Nitrate, Ammonium Sulfate, DAP/MAP, Earnings, News, Nitrogen, NPK, NPS, Phosphate, Russia, Urea

PhosAgro, Moscow, reported a 2 percent year-over-year increase in fertilizer output, and a 3 percent increase in fertilizer sales volumes in the first quarter of this year.

Fertilizer production reached 2.61 million mt, up from the year-ago 2.56 million mt. The group attributed the increase to the upgrade of capacities, enabling an increase in NPK production. Fertilizer sales totaled 2.86 million mt, versus the previous year’s 2.79 million mt. PhosAgro cited both high seasonal demand and a large volume of carryover sales at the end of December 2020 as driving sales growth.

First-quarter sales volumes of all phosphate-based fertilizers and MCP were marginally lower (0.5 percent) from a year ago at 2.08 million mt, down from 2.09 million mt. DAP/MAP sales volumes were also off, at 877,400 mt versus the prior year’s 924,900 mt, with the fertilizer group citing a delay in the dispatch of several vessels at the end of March due to severe ice conditions.

PhosAgro did not supply any DAP or MAP to the U.S. to date this year, according to Russian media reports, citing the group. The trade halt follows the imposition by the U.S. Department of Commerce (DOC) of countervailing duties (CVDs) on phosphate fertilizers imports from Russia (and Morocco). The CVDs followed a U.S. States International Trade Commission (USITC) investigation that found the U.S. phosphate industry is materially injured by reason of imports of phosphate fertilizers from the two countries. Preliminary duties were implemented late last year, and the DOC and the USITC issued their final decisions in February and March, respectively (GM Feb 12, p. 1; March 12, p. 1).

Based on the DOC’s final decision in February, the cash deposit rate for PhosAgro was 9.19 percent (GM March 12, p. 36).

The Russian fertilizer group this week highlighted sales of its premium brands of NPK (S) increased in the first quarter of the year in the European, Russian, and Latin American markets, where a strong recovery in seasonal demand was observed. The group’s total NPK sales were up 4 percent on the year, at 811,100 mt.

As a result, the share of NPK(S) brands in PhosAgro’s total first quarter sales increased to 49 percent, up from 47 percent a year earlier.

First-quarter nitrogen fertilizers sales rose 12 percent to 787,300 mt, up from the year-ago 702,800 mt. The group said the increase was across all products, and driven by high seasonal demand and end-user affordability.

Total fertilizer export sales increased 7 percent year-over-year, reaching 2.0 million mt, driven by a strong recovery in seasonal demand in Europe, Latin America, and North America. The group’s domestic fertilizer sales were some 900,000 mt, and on a par with the same year-ago quarter.

PhosAgro Fertilizer Production and Sales Volumes

‘000 mt 1Q-2021 1Q-2020 Percent change
Production      
Phosphate-based fertilizers +MCP 1,983.1 1,937.9 +2
Nitrogen-based fertilizers 631.4 617.4 +2
Total fertilizers 2,614.5 2,555.3 +2
       
Sales      
Phosphate-based fertilizers +MCP      
DAP/MAP 877.4 924.9 (5)
NPK 811.1 781.6 +4
NPS 208.7 199.4 +5
APP 63.4 63.1 +1
MCP 113.7 97.4 +17
PKS 2.2 20.9 (90)
Total 2,076.5 2,087.3 (1)
       
Nitrogen-based fertilizers      
AN 252.8 236.0 +7
Urea 504.2 466.8 +8
AS 30.3 0 –
Total 787.3 702.8 +12
Total Fertilizers 2,863.8 2,790.1 +3

PhosAgro’s board has recommended the payment of an increased dividend of RUB63 per (approximately 82 U.S. cents at current exchange rates) per ordinary share for FY2020, in addition to interim dividends already paid, to be approved at the group’s annual general meeting to be held next month.