St. Louis-In a move that will clear the way for the expansion of its bulk “clean urea” business, Lange-Stegmann Co. has agreed to sell its bagged, blended NPK fertilizer business to T&N Inc. of Foristell, Mo. Lange-Stegmann President Mike Stegmann said the bagged blend fertilizer business was a very small part of his company, and the sale will allow them to focus on bagging only urea-based nitrogen fertilizers for his company and its wholly-owned subsidiary, Agrotain International. For T&N, the purchase represents a significant expansion of their blended business. “Although our company started with bagged fertilizers, we’ve grown to the point where it now makes more sense for us to focus completely on our bulk and stabilized nitrogen products,” said Stegmann. “So we decided to sell the business to our long-time customer, T&N Inc., and we know it will serve their company well. For us, the focus on bagged urea and our departure from the blend business is going to be a major step forward. In terms of quality, efficiency and service, we’ll better serve our growing list of customers demanding ultra-clean bagged urea and our totally soluble stabilized nitrogen fertilizers such as SuperU, UFLEXX, and UMAXX.”
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Koch reports completion of Enid upgrade
Enid, Okla.-Koch Nitrogen Co. LLC said March 18 that it has completed enhancements to its facility at Enid, Okla. Koch says the project provides an additional 140,000 st/y of urea to the market and significantly enhances the plant’s rail load-out capability. More than 600 people were contracted to complete the project. Improvements included replacement and modification of equipment and production process re-configuration, allowing for increased ammonia and CO2 throughput to ultimately increase urea output. “The work we’ve done will allow us to better meet the fertilizer demands of farmers in the area and the region,” said Ken Dayton, Enid plant manager. “We are pleased to be able to better serve our customers and increase our ability to upgrade ammonia and CO2 to urea to meet market demand.” Koch purchased the Enid plant in 2003 during the Farmland Industries Inc. bankruptcy process.
Intrepid fined $165,000 over electrocution
Arlington, Va.-The U.S. Department of Labor’s Mine Safety and Health Administration (MSHA) recently announced it has assessed $165,000 in fines against Intrepid Potash NM LLC in the August 2008 electrocution of a mine shift foreman (GM Aug. 11, 2008). On Aug. 6, 2008, Jeffrey Franklin, a shift foreman with 15 years experience, was fatally injured on the surface of the Intrepid Potash East Mine in Eddy County, N.M., when he came into contact with energized parts of a steel water line. MSHA said the 38-year-old Franklin contacted conductors for a heat tape that had been installed in a shared conduit body with the conductors of a 480-volt electrical circuit. One of the conductors short-circuited to the heater tape, which was attached to the water line. The heat tape overheated and portions of the heat tape insulation melted away, leaving bare conductors. “This tragic accident occurred because management policies and procedures failed to ensure that all potential electrical hazards in the plant were identified and corrected properly,” said Michael Davis, MSHA’s deputy assistant secretary for operations. Accident investigators concluded that the conduit body was not effectively grounded, the 480-volt circuit was not protected from overloads with a properly sized circuit breaker, the conductors inside the conduit body were not protected from mechanical damage, and the two abandoned circuits were not removed. Three contributory citations issued to the mine operator were each assessed at $55,000 for having the wrong capacity circuit breaker, failure to protect the conductors from mechanical damage, and failure to effectively ground the lighting circuit.
PotashCorp to adopt advisory vote on exec. comp.
Saskatoon-PotashCorp said March 23 that it will introduce a non-binding advisory shareholder vote related to executive compensation at its annual meeting in 2010. PotashCorp said it is among the first Canadian companies to voluntarily adopt the advisory vote, commonly referred to as “say on pay.” PotashCorp said after monitoring recent developments and trends, its board of directors has opted to hold such a vote in 2010. In view of this commitment, Meritas Mutual Funds has withdrawn its shareholder proposal scheduled for consideration at PotashCorp’s 2009 annual meeting. “Listening to stakeholders is one of our company’s core values,” said Dallas Howe, chair of PotashCorp’s board. “Executive compensation is increasingly a top-of-mind issue and shareholders in many companies have recently expressed their support for ‘say on pay’ resolutions. Given such sentiment, this is an appropriate and timely action for us to take.”
New urea plant proposed for Australia
Perth-Perdaman Chemicals and Fertilisers has announced plans to build a A$3.5 billion urea complex at the Shotts Industrial Park in Collie, Western Australia. Perdaman says construction is expected to start in early 2010, with 1,500 jobs needed during the three-year construction phase, and about 200 permanent jobs once the plant starts operations. The plant will have the capacity to produce 2 million mt/y of urea, with the majority available for export. Perdaman expects the plant to generate A$850 million per year following its first shipment in 2013. Perdaman plans to use coal gasification technology for the plant, using local coal. Perdaman Industries and its subsidiary, Perdaman Chemicals and Fertiliser (formerly North West Chemicals and Fertilisers), was formed in 2006. The company says Founding Chairman Vikas Rambal and his fellow directors all have extensive major project experience, most recently having played central roles in the development and construction of the A$700 million ammonia plant located on the Burrup Peninsula.
Wisconsin to get statewide phosphorus ban
Madison, Wisc.-The industry isn’t 100 percent comfortable with a bill approved by the state legislature and expected to be signed by the governor to prohibit statewide phosphorus in fertilizer used for most lawn applications, according to the Wisconsin Agribusiness Council. CEO Ferron Havens told Green Markets that agriculture is excluded in the measure that passed unanimously in both the senate and the assembly and was sent for signature to Gov. Jim Doyle. A spokesman said Doyle supports the legislation. “We’re keeping an eye on it (the legislature) because at some point they may try to come back with something like not allowing phosphorus within 100 feet of a river,” Havens reported. He said the ban covers residential lawns, golf courses, and municipal parks, but phos can be used on any of those parcels if a soil test deems it necessary, or on new turf or an area being reseeded. Havens noted that one bothersome requirement that was opposed by the council requires retailers to keep phosphorus fertilizer behind their counters and post signs advising customers that it can be purchased, but only for the restricted use. John Mikalauski, nursery and design manager at Birchfield Nurseries in Rhinelander, doesn’t understand why farmland is excluded since soil in northern Wisconsin is already rich in phosphorus. He told the local press, “To be honest with you, that’s very confusing to me. I would definitely target the farmland, absolutely. That’s why and how it all started, I don’t get that.” State Rep. Spencer Black of Madison authored the bill because phosphorus runoff contributes to algae growth in the state’s waterways. Biosolid fertilizer, which usually contains all three primary nutrients, is not covered in the legislation.
OCI signs deal with Brazilian ag group
Cairo-Orascom Construction Industries (OCI) and FITCO Tradecom do Brazil Ltda., part of Brazilian-based company Group Fertipar, have confirmed that they have entered into a strategic alliance through the signing of an agreement for the supply and import of granular urea fertilizers into Brazil. FITCO, a fertilizer trading company with a great deal of experience in the Brazilian market, aims to enhance domestic demand, as well as develop further marketing and sales for OCI’s fertilizer products through regular supply to its network and to third parties. FITCO also has a growing presence in several Latin American countries. The strategic supply agreement is initially focused on nitrogen-based fertilizers, specifically for granular urea, during 2009. An initial export shipment for 30,000 mt from OCI’s fertilizer plant in Egypt destined to Brazil is currently being executed under this arrangement. The agreement encompasses a mutual exclusivity arrangement on a right of first refusal basis for the supply and import of granular urea fertilizer into the Brazilian market. “We are pleased to start this new partnership with FITCO International,” said OCI CEO Nassef Sawiris. “The current agreement connects our efficient production infrastructure in North Africa with FITCO’s state-of-the-art fertilizer distribution network in Brazil on a sustainable basis. We believe this partnership has room to grow in the future as we pursue potentially larger synergies.”
Enviros, tribes seek to overturn new fert. plant permit
Boise-The Idaho Conservation League, the Shoshone-Bannock Tribes, and the Sierra Club have filed a petition with the Idaho Board of Environmental Quality to protest the state’s issuance of an air quality permit for a $1 billion coal gasification fertilizer plant near American Falls. On Feb. 10, the Idaho Department of Energy issued the permit to Southeast Idaho Energy (SIE), a subsidiary of Refined Energy Holdings of New York, authorizing SIE to construct the plant, which would produce up to 500 st/d of anhydrous ammonia, up to 1,800 st/d of granular urea, and up to 1,600 st/d of UAN. “This single source would amount to 5 percent of Idaho’s annual C02 emissions – a very large step in the wrong direction for Idaho as the country and the world are focusing on ways to significantly cut greenhouse gases,” the groups said in their March 17 petition. The groups ask that the permit be reviewed because their concerns during a public comment period were not adequately addressed. They contend the permit must be invalidated because many of its conditions violate the federal Clean Air Act, its implementing regulations, and Idaho air regulations. They say the permit fails to demonstrate the project will not cause nor contribute to violating fine particulate standards. The groups also accuse IDEQ of failing to use Best Available Control Technology (BACT) standards in setting emission limits for particulates, carbon monoxide, and nitrogen oxides. The IDEQ also failed to consider sulfur dioxide flares, carbon dioxide, and other greenhouse gas emissions, they argue. On March 18, SIE agreed with the ICL, the Sierra Club, and the Shoshone-Bannock Tribes to stay the contested case process until April 17 so they could work together to address concerns and avoid the need to continue through the contested case process, which “would hinder the opportunity for good faith negotiations to resolve the concerns of the petitioners.” Representatives of the company and the groups met March 24 in San Francisco to try to resolve their differences. Although they did not reach a consensus, participants described the meeting as constructive. Other meetings are likely.
TFI says fertilizer use recognized at Senate hearing
Washington-The Fertilizer Institute recently attended a Senate Foreign Relations Full Committee hearing titled “Alleviating Global Hunger: Challenges and Opportunities for U.S. Leadership,” where it said fertilizer’s contribution to modern agriculture was recognized. Panel witnesses included Dr. Robert Paarlberg, political science professor at Wellesley College, and Edwin Price, associate vice chancellor and director for the Norman Borlaug Institute for International Agriculture. TFI said both panelists and committee members displayed a generally supportive attitude toward the proper use of fertilizer nutrients as part of the solution to solving the world’s food crisis. Dr. Paarlberg cited examples from his book, Starved for Science, to highlight that African farmers produce less than a fifth of the yields that farmers in other countries produce due to the fact that they have been denied access to productive technologies such as genetically engineered seeds and chemical fertilizers. TFI said that witnesses stated that the decreased yields from organic farming practices are not socially acceptable when you consider the increased yields and efficiencies of production agriculture. Representatives from the Norman Borlaug Institute for International Agriculture emphasized that proper fertilizer use, coupled with other modern agricultural technologies, is the only answer in alleviating global hunger. Several committee members agreed that, for farmers, fertilizer is a return on investment, and when used correctly, can boost yields in an environmentally sound manner.
Demand growing rapidly for Save-a-Tree
Nampa, Idaho-TerraLife Inc. reports sales of its Save-a-Tree fertilizer, which has found a devoted following for restoring health to dying fruit trees, exceeded 90,000 gallons last year, and more growth is expected this year after being awarded the 675,000-member National Home Gardening Club’s seal of approval. The organic product, which was tested by more than 100 NHGC panel members over a three-month period, is featured in the organization’s magazine Gardening How-To. “Last year we sold more than 75,000 gallons of Save-a-Tree in the Nampa-Boise area alone,” said Jos Zamzow, TerraLife vice president. “It is particularly popular with people raising fruit trees. It has been so successful in organic gardening circles here that we are concentrating on national distribution this year. There is a much greater focus on organic gardening and products that are safe for the environment.” Calloway’s Nursery, Inc. and Cornelius Nursery, Inc. recently introduced Save-a-Tree at 23 locations in Texas, and additional outlets have signed on in Fremont, Calif., Salt Lake City, Spokane, Wash., and Boise. Save-a-Tree was concocted 20 years ago by Jos’s father Jim Zamzow, popularly known as Dr. Jim, who started by giving his Idaho nursery customers a brown liquid organic fertilizer in used two-liter soda bottles. Customers kept coming back, the family recalls, and after his first 55-gallon batch was depleted he named the product Save-a-Tree and started selling it. Save-a-Tree’s recipe is a secret, but is known to contain nitrogen and phosphate in a base of sugar cane molasses, selected because it smells good, does not attract ants, and discourages nematodes.