All posts by mickeybarb@charter.net

Anuvia Raises $103 M in Funding; Capacity Expansion Planned

Florida, News, News Briefs, Specialty

Anuvia™ Plant Nutrients, Winter Garden, Fla., said on Feb. 23 it has raised $103 million in Series C funding and will use the financing to increase production capacity and expand commercialization of its nutrient delivery technology. Anuvia’s SymTRX™ is already in commercial use on U.S. farms, with use expected to increase to reach 20 million acres by 2025.

The Mosaic Co., Tampa, exclusively licensed Anuvia’s SymTRX10S product in the U.S. to be sold as Susterra™ last fall (GM Sept. 25, 2020). Mosaic also holds an equity stake in Anuvia. In addition, Anuvia has a ten-year lease of Mosaic’s Plant City manufacturing facility from Mosaic (GM Sept. 27, 2019).

“By achieving meaningful and immediate reductions in greenhouse gases in crop production, Anuvia is helping to bring Scope 3 sustainability targets into focus,” said Anuvia CEO Amy Yoder. “The immediate ROI for farmers is driving fast adoption of our technology, accelerating the benefits to the entire food value chain.”

Yoder told the Orlando Business Journal that the capacity increases will be at the leased Plant City plant, and that the company has closed its smaller plant at Zellwood, Fla. (GM Jan. 1, p. 1).

Environmental Resources Management (ERM), a global environmental consulting firm, verified the environmental impact of Anuvia’s bio-based SymTRX nutrient technology versus traditional fertilizer on corn, rice, and cotton. The company said the study found that Anuvia’s products, which include both organics and inorganics, reduce greenhouse gases on production by up to 32 percent, compared to the use of conventional fertilizers.

Based on the study, Anuvia said it is possible to state that for every million acres of crops that use Anuvia’s products, the reduction of greenhouse gases is the equivalent of removing up to 30,000 cars from the roads. With 90 million acres of corn in the U.S. alone, this would conservatively translate to 1.8 million cars removed in perpetuity.

The funding was co-led by TPG Alternative & Renewable Technologies and Pontifax Global Food and Agriculture Technology Fund, with additional investment from Generate Capital Inc. and Piva Capital. TPG is a global alternative asset firm founded in 1992 with approximately $85 billion of assets.

Pontifax, Santa Monica, Calif., founded in 2013, is a growth capital investor in food and agriculture technology. The firm manages $471 million in assets. Generate Capital, founded in 2014, is a sustainable infrastructure company and partners with over 35 technology and project developers and owns and operates more than 2,000 assets globally. Piva Capital, San Francisco, invests in early- to growth-stage companies around the world.

EarthRenew to Buy All of Replenish

Canada, News, News Briefs, Specialty

EarthRenew Inc., Toronto, announced on Feb. 24 that it has negotiated an increase to its proposed equity ownership stake from 38 percent to 100 percent of the issued and outstanding of Replenish Nutrients Ltd., a privately-held regenerative fertilizer and nutrient company located in Okotoks, Alberta, Canada. The company has entered into a new nonbinding letter of intent that supersedes and replaces the letter of intent dated Dec. 11, 2020 (GM Jan. 15, p. 35), respecting the proposed 38 percent equity acquisition.

Consideration for the proposed acquisition is approximately US$1.1 million in cash and $7.9 million in common shares of EarthRenew.

“The outcome of the diligence process was that it became apparent to both parties that we were more aligned with our collective vision than we originally thought, and the natural next step was for EarthRenew to become much more than a minority owner of Replenish Nutrients,” said EarthRenew’s CEO Keith Driver.

“If consummated, acquiring full ownership is anticipated to allow us to not only add top line revenue and accelerate phase two of our construction plans, but also to invest in the growth of Replenish Nutrient’s manufacturing capacity to address a supply gap for their product. We look forward to the potential to work with the entire Replenish Nutrients team to accelerate growth of the new combined entity, leveraging their experience in the fertilizer and soil solution space,” Driver added.

Replenish Nutrients currently has an established product line that it sells across Western Canada and into the U.S. (North Dakota and Montana), which it said generates strong revenues.

Following the closing of the proposed acquisition, the combined company sees itself as a leader in the regenerative and organic fertilizer space, being able to manufacture, market, and distribute a broad range of high-value crop inputs.

Replenish Nutrients booked revenue of US$5.1 million for second-half 2020 and through the end of January 2021 with a gross margin of approximately 30 percent. The company is forecasting US$4.8 million in revenue for the balance of the first half of 2021. This equates to a total of $9.9 million for the period of July 2020 through June 2021, up from $3.6 million for the same period in 2019/2020.

Replenish Nutrients will continue to operate as a marketing and distribution company as a wholly owned subsidiary of EarthRenew.

EarthRenew transforms livestock waste into organic fertilizer to be used by organic and traditional growers in Canada and the U.S. Located on a 25,000 head cattle feedlot, their flagship Strathmore plant is capable of producing up to four megawatts (MW) per hour of low-cost electricity powered by a natural gas fired turbine. The exhausted heat from the turbine is used to convert manure into certified organic fertilizer.

Fertoz Partners with WAMCO, Plans Multi-Nutrient Organic Fertilizer

News, News Briefs, NPK, Phosphate, Saskatchewan, Specialty, Sulfate of Potash

Organic phosphate development company Fertoz Ltd. on Feb. 24 announced its new partnership agreement with Western Alfalfa Milling Company (WAMCO), which will provide Fertoz with access to a wider range of nutrients and soil amendments for organic, sustainable, and regenerative producers, and will expand the company’s footprint throughout North America.

WAMCO produces organic and conventional dehydrated alfalfa pellets for the livestock feed industry, growing and processing alfalfa near Norquay, Sask., before shipping its products across North America. It also produces Alfalfa Green, a slow-release nitrogen fertilizer and soil amendment product. Fertoz said the WAMCO milling facility and all of its organic fields are certified organic by EcoCert Canada.

Fertoz hopes to combine its own organic phosphate with WAMCO’s nitrogen and add sustainable sourced potash and sulfur to provide multi-nutrient products – NPKS. Fertoz said the agreement will provide a broad range of customers with better access to all Fertoz and WAMCO products through shared local and regional sales outlets and will facilitate the development of a much sought-after all-in-one NPKS nutrient product in various size and packaging options ranging from bulk and totes to 25lb and 50lb bags.

“We are delighted to partner with WAMCO and excited to broaden our distribution channels further, providing more farmers than ever with access to our products,” said Derek Squair, Fertoz Vice President of North American Sales.

“This partnership is underpinned by Fertoz’s recent announcement of a first-of-its-kind organic input storage site at Wilson Siding, Alberta, and is an important step towards our goal of becoming the leading organic input supplier in North America. This new partnership with WAMCO will help organic growers to reach their productivity goals in line with what best-practice conventional growers have come to expect,” said Squair.

The partners already have two products under development. Nutrient Vigour is a pelletized blend of Alfalfa Green Nitrogen and rock phosphate that provides organic-approved natural slow-release nitrogen and phosphorus nutrients to the soil. This plant and mineral pellet provides soil conditioning, reduces compaction, conditions the soil, and also adds 30 additional nutrients to balance the soil. The second product, Nutrient Vigour Plus, is a pelletized blend of Alfalfa Green Nitrogen, rock phosphate, sulfate of potash, and sulfur, providing NPKS.

The partners said these products will be made broadly available through Fertoz and WAMCO’s existing distribution networks over the coming weeks, ready for 2021 planting.

Fertoz sources its phosphate rock from its own locations in British Columbia as well as from a supplier in Mexico (GM Dec. 6, 2019).

China’s Henan Awards Stamicarbon Urea Plant Contract

China, Europe, News, News Briefs, Urea

Tecnimont Group, and China’s Henan Xinlianxin Chemicals Group Co. Ltd. said on Feb. 22 they have signed licensing and equipment supply contracts for a second Ultra-Low Energy grass root urea plant.

The first plant ever designed with Stamicarbon’s Launch Melt™ Ultra-Low Energy design, it is also licensed to this customer and is currently in commissioning at the site of their subsidiary, Jiujiang Xinlianxin Fertilizer Co. Ltd., in Jiangxi province. The first plant is scheduled to start up this month.

The parties said this represents the third licensing project in five years between Henan and Stamicarbon. It started with a revamping project signed in 2016, followed by the first Ultra-Low Energy grass root plant in 2017, and this latest contract for their second Ultra-Low Energy plant in the final days of 2020.

Stamicarbon will deliver the Process Design Package and the proprietary high pressure equipment in Safurex® and associated services for both the urea melt plant and finishing by prilling. The urea plant with a Pool Reactor will have a capacity of 2,334 mtpd and is expected to start up in 2023. The urea melt plant will feature Stamicarbon’s Ultra-Low Energy design, allowing for heat to be used three times (instead of two), bringing additional energy savings.

Two Dead, Many Injured at UPL Plant Fire

India, News, News Briefs

Two workers were reported dead, five missing, and over 30 injured due to a plant fire at a United Phosphorus Ltd. (UPL) plant in Jhagadia, Gujarat state, in India on Feb. 23, according to Express News Service. The fire was soon brought under control. Authorities closed the plant for a full inspection.

According to the report, UPL suspected an electrical short circuit, saying the plant had been shut down since Feb. 5 for an annual boiler inspection, with no chemical reaction in progress at the time.

Mosaic Reports 70 Percent Increase in January Phosphate Revenues

Brazil, Earnings, News, Phosphate, Potash, Tampa

The Mosaic Co., Tampa, released January statistics on Feb. 24 with the Phosphate segment leading the way, with a 70 percent increase in sales revenues and a 24 percent increase in sales volumes over the year-ago month.

January phosphate volumes were 741,000 mt, up from 599,000 mt, while sales revenues were $337 million, up from $198 million.

Potash and Mosaic Fertilizantes segments both reported results below the year-ago period.

Potash volumes were 624,000 mt, down from 728,000 mt, while sales were $151 million, down from $170 million. However, the segment is coming off a big fourth-quarter that saw an 80 percent increase in potash sales volumes (GM Feb. 19, p. 27).

Mosaic Fertilizantes posted January sales volumes of 718,000 mt, off from the year-ago 752,000 mt, while revenues were $262 million, down from $281 million.

Chemtrade 4Q Loss Doubles

Canada, Earnings, News

Chemtrade Logistics Income Fund, Toronto, reported a fourth-quarter net loss of C$25.8 million on revenues of $319.4 million, compared to the year-ago loss of $12.6 million and $355.3 million, respectively. EBITDA was down to $44.2 million from $70.3 million.

The company said the most significant factor that negatively affected EBITDA during the quarter was lower sales volumes for regen acid due to an extended turnaround at a Chemtrade plant. This plant’s main refinery customer took an extended, once-every-five-years turnaround.

Chemtrade also cited the COVID-19-induced reduction in gasoline use, resulting in refineries operating at low utilization rates, which led to the reduced demand for regen services. Merchant acid demand was lower due to the reduced level of economic activity.

The company declared a fourth-quarter distribution of $0.15 per unit.

Chemtrade reported a full-year net loss of $167.5 million on revenue of $1.4 billion, up from the year-ago loss of $99.7 million and $1.5 billion, respectively. EBITDA was down, at $265.3 million from $295 million.

Martin Doubles Sulfur/Fertilizer Income in 2020; COVID-19 Impacts Refinery Segment

Earnings, News, Sulfur, Texas

Martin Midstream Partners LP (MMLP), Kilgore, Texas, reported operating income of $29 million on revenues of $108 million for the year ending Dec. 31, 2020, for the Sulfur Services segment, which includes both its sulfur and fertilizer business, whereas year-ago results were $14 million and $111.3 million, respectively. Adjusted EBITDA for the segment was $32 million, up from 2019’s $7.4 million.

Fertilizer volumes were up 6 percent, to 275,000 lt from the 2019’s 260,000 lt, while sulfur tons were off 3 percent, to 642,000 lt from 665,000 lt.

Although MMLP reported that fourth-quarter fertilizer volumes were up 44 percent, operating income for the unit was up only slightly to $4.7 million from $4.6 million, and adjusted EBITDA remained level at $7.4 million. MMLP said fertilizer benefited from an improved planting season and higher prices, while sulfur saw lower margins due to COVID-19’s impact on the refining industry. The unit also had a year-ago benefit of including business interruption insurance.

MMLP-wide was in the loss column for both the fourth quarter and full-year, however, the company did meet the low end of its guidance for full-year adjusted EBITDA.

“Despite the difficulties associated with the pandemic and the specific challenges to our industry, we were able to meet the low end of our full year guidance even though the fourth quarter fell short of our expectations,” said  Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of MMLP.

“Headwinds in both our Transportation and NGL segments impacted our results significantly. In the Transportation segment, as expected, reduced refinery utilization resulted in lower demand for our marine assets,” he said. “In the NGL segment, the backwardation of the butane price curve led refineries to delay purchases anticipating a lower price environment in the first quarter of 2021. This negatively impacted our fourth quarter sales volumes, specifically in December, resulting in a misalignment between physical sales and financially hedged volumes.”

“As we look to 2021, I am optimistic that refinery utilization will continue to increase as demand rises as a result of widespread vaccinations, government stimulus and a rebounding economy,” added Bondurant. “Our businesses remain solid with approximately 62 percent of our cash flows tied to fixed-fee contracts. We will continue to focus on optimizing utilization of our asset base, reducing costs, and generating consistent cash flows to meet our leverage reduction goals and return value to our unitholders.”

MMLP reported a full-year loss of $6.8 million on revenues of $672.1 million, compared to the year-ago loss of $174.9 million and $847.1 million. The year-ago loss reflected discontinued operations. Adjusted EBITDA was $94.9 million, down from $108.3 million.

MMLP is giving guidance for 2021 of 95-$102 million in adjusted EBITDA.

MMLP reported a fourth-quarter net loss of $2.56 million on revenues of $180.1 million, down from the year-ago net income of $6.64 million and $241.9 million, respectively. Adjusted EBITDA was $17.4 million, down from $35.5 million.

Land O’Lakes Earnings Up 29 Percent

Earnings, News, U.S.

Land O’Lakes Inc., Arden Hills, Minn., reported a 29 percent increase in net earnings for the year ending Dec. 31, 2020, to $266 million on net sales of $13.9 billion, compared to 2019’s $207 million and $13.9 billion, respectively. Land O’Lakes noted that the $59.1 million increase in earnings came despite the economic challenges and volatile market conditions due to impacts of the global COVID-19 pandemic.

“While I’m proud of our performance, I am even more proud of the team that delivered it. In an evolving and difficult landscape, Land O’Lakes was able to perform,” said Beth Ford, President and CEO of Land O’Lakes, Inc. “We focused on growth in a challenging environment by standing up e-commerce across the business units as everyone moved online, developing revenue options for farmers, and working to offset significant market declines.”

2020 earnings strength was driven by improved performance in Dairy Foods and Animal Nutrition businesses. Crop Inputs earnings were lower, as crop protection margins were compressed due to unfavorable product mix driven by grower buying decisions and basic manufacturers lowering prices.

Crop Inputs showed improved performance in both its crop nutrition and international businesses while leveraging its investment in digital sales platforms to help its network of brick-and-mortar retailers avoid service disruptions throughout the pandemic.

BHP Brings in Outside Consultants to Review Jansen Potash Project Ahead of Upcoming FID

Australia, Featured, News, Potash, Saskatchewan

BHP Ltd. CEO Mike Henry has brought in external consultants to review all aspects of the Jansen potash project in Saskatchewan, Canada, according to a Bloomberg report this week, citing a UBS AG note of Feb. 23. The note followed a sell-side roundtable with the CEO and BHP CFO David Lamont.

Henry is reported not to be happy about some aspects of the mining group’s decade-long road to develop Jansen, according to the report.

“The fact that we’ve got $4.5 billion sunk into Jansen and the time it has taken us to get here is something that I’m certainly not pleased with,” Bloomberg cited the CEO as telling analysts following the group’s fiscal first-half earnings announcement last week (GM Feb 19, p. 33).

Stage 1 of the Jansen project is due to be presented to the mining group’s board for a final investment decision in the middle of this calendar year. Stage 1 would provide 4.3-4.5 million mt/y of potassium chloride production capacity and will require another US$5.3-$5.7 billion to be completed, according to BHP.

According to the report, UBS sees finding a port solution for the project as one of the outstanding issues, although Henry said there were options.

Morgan Stanley analysts, including Rahul Anand, said in their note following the roundtable cited by Bloomberg that BHP wants to make sure all assumptions including capital and internal and external inputs are “stress tested well.”

Anand sees two options for the mining group in its upcoming investment decision whether to proceed with Jansen Stage 1 – either to proceed with the project, or, if the economics do not stand up, put the project on ice for five years and wait for the fundamentals to improve.

However, Shaw & Partners Ltd. mining analyst Peter O’Connor puts the chance of BHP moving ahead with Jansen at “above 50 percent.”

“This is a multi-generational asset – a little like iron ore was in the 1960s and 1970s, and the market’s fixation with the next few years shouldn’t be relevant,” Bloomberg cited O’Connor as saying. He believes BHP Chairman Ken MacKenzie should take a multi-decade view.

Despite the ongoing recovery in potash prices from their tumble to 10-year lows in April 2020, some analysts are skeptical that Jansen would be profitable in the current market, according to the Bloomberg report.

“Potash prices still remain at levels that could challenge the economics of the project, but the BHP board might be prepared to take a longer-term view, and

[we suspect]

BHP could pursue Jansen as an avenue for growth,” the report cited a UBS resources analyst Glyn Lawcock note of Feb. 17.