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River Bend Ag to increase dry storage at New Madrid

Featured, Mississippi RIver, News

River Bend Ag LLC, a wholesale fertilizer distributor located on the Mississippi River at New Madrid, Mo., announced last week that it will increase its dry fertilizer storage capacity at that location by some 35 percent, from the current 25,000 tons to between 32,000 and 35,000 tons.

The company, a joint venture between Mosaic Crop Nutrition and a regional cooperative by the name of Delta Growers Association, stores urea, ammonium sulfate, DAP, and potash at the New Madrid facility, and also has capacity there for about 23,000 tons of UAN. New Madrid is located just south of the confluence of the Mississippi and Ohio rivers at Cairo, Ill.

Eddie Barnhill, general manager of River Bend, told Green Markets that construction on the additional dry storage space will start in the coming weeks, with plans to have it completed by January in time for the spring 2009 planting season. River Bend’s dealer network is mostly west of the Mississippi River and stretches into western Missouri, north to St. Genevieve, Mo., near St. Louis, and south into Arkansas.

“With the world’s demand for quality food increasing each year, the producer of tomorrow will need to be able to produce food and fiber that will meet those needs,” the company said in a press release. “Our expansion will allow us to provide new solutions to help manage those needs.” Added Barnhill, “The additional storage will increase our ability to assist our dealer network in meeting the ever changing nutrient demands of today’s producers.”

River Bend has 10 employees and has been in existence for nine years, Barnhill said. The New Madrid site was a Cargill Crop Nutrition facility prior to the formation of the jv. Mosaic’s partner in River Bend, Delta Growers Association, is a farmer-owned cooperative based in Charleston, Mo., with more than 300 members.

Barnhill, who worked for Delta Growers prior to joining River Bend six years ago, said operating the expanded facility will likely require no additions to the River Bend staff.

Local citizens, union debate new fertilizer plant; could break ground in first half 2009

News

Local citizens concerned about the air they breathe and trade unionists eager to work on a major construction project were among those who expressed their opinions Sept. 22 about Southeast Idaho Energy’s planned coal-gasified nitrogen fertilizer complex near American Falls, west of Pocatello. They spoke at Pocatello City Hall during a well-attended Idaho Department of Environmental Quality (IDEQ) informational hearing about SIE’s “Power County Advanced Energy Center.”

Southeast Idaho Energy (SIE), a subsidiary of Refined Energy Holdings of New York, plans to spend $1 billion on the first phase of the project that will produce up to 500 st/d of anhydrous ammonia, up to 1,800 st/d of granular urea, up to 1,600 st/d of a urea ammonium nitrate solution, and up to 500 st/d of sulfuric acid. It has decided against producing diesel fuel or generating electricity at the site as originally planned.

SIE applied for an air quality permit 18 months ago and revised it in April. Ground is expected to be broken during the second quarter of 2009, with permitting completed by this fourth quarter. The first phase is scheduled to be completed by June 2012.

The U.S. Environmental Protection Agency has designated Power County an attainment area for nitrogen oxides, carbon monoxide, and particulate matter smaller than 10 micrometers in diameter (PM10), sulfur dioxide, ozone, and lead. SIE says the project will not cause nor contribute to a violation of national or state ambient air quality standards. SIE is investigating ways to use carbon dioxide, such as piping it 120 miles to Wyoming for enhanced oil recovery, but initially would emit it.

A woman in the audience opposed to the plant’s construction commented: “We’re more and more aware that carbon dioxide is our death sentence.” She criticized the low amount of fines imposed for violations. “This whole thing to me is ridiculous from start to finish.” A union representative countered her comments by saying: “I think this company has gone out of its way to keep the emissions at their lowest. … These people are being put on trial. All they are doing is giving us facts.”

Cheryl Robinson, IDEQ staff engineer, said mercury emissions would be so low that they would fall below the need for screening, but the IDEQ would conduct inspections to ensure SIE kept records on all its various discharges.

“I don’t have a dog in this hunt. As an engineer, I’ve got to make sure we’ve got the numbers,” she said, mentioning the state has serious staffing issues with water quality engineers in Pocatello, but does not lack air quality specialists.

Robinson said plans for the American Falls coal gasification plant are similar to processes for one in Coffeyville, Kansas. She said synthetic gas flares at startups will give the IDEQ a good idea on what is emitted from the SIE plant. IDEQ is only processing an air quality permit for it, not a water quality permit, she said.

Rail delivery structures, including conveyers, will be enclosed. A rail system is designed to accommodate up to 150 100-ton train cars. The feed rate to the gasifier will range from 2,000 to 2,300 st/d, or between 20 and 23 rail cars per day, depending on fuel blend. One silo will be dedicated to coal, another to petroleum coke. Each silo will have a capacity of about 35,000 st, giving the project about 30 days of fuel. The coal must be pulverized and combined with water for slurry pumped to the gasifier.

Melissa Gibbs, an IDEQ air shed specialist, noted that Idaho State University, the Marsh Valley School District, and Amalgamated Sugar all use coal for their operations. All air quality standards are being met in Power and Bannock counties, she said. It was noted that sulfur dioxide emissions from the J.R. Simplot Co.’s phosphate fertilizer plant near Pocatello are far greater than what the SIE plant would discharge. “No facility in the state compares to the SO2 levels as Simplot does,” Gibbs said. “Simplot is our largest industrial source.”

Two proposed emergency diesel generators at the SIE plant will be under stringent sulfur emission standards, she said, noting the best available control technology is required under the state permit.

SIE has purchased senior industrial water rights from FMC Corp., allowing it to pump about five million gallons of groundwater per day. FMC used the water to support operations at its Pocatello elemental phosphorus plant, which was shut down in December 2001. It is estimated SIE will need to buy up to 150 megawatts of electricity for the project.

John Burk, an SIE spokesman, said it’s estimated the new fertilizer plant would use two million gallons of water daily – or the same amount of water now used to irrigate the land where the plant will be constructed, according to the Aberdeen/Springfield Canal Co. Recognizing that water is an issue, SIE is also looking at using waste water from a nearby Lamb Weston potato processing plant, he said.

During three years of construction, SIE will employ 750 to 1,350 workers, primarily from Southeast Idaho, Burk said, noting his company has had discussions with Idaho State University about training programs. “We have a very strong commitment to hiring locally.”

Informational hearings pertaining to the SIE air quality permit to construct were also held in American Falls on Sept. 23 and Fort Hall on Sept. 24. The deadline for submitting written comments addressing air quality considerations regarding the proposed permit is Oct. 24. A hearing at which public comments may be submitted will be held Oct. 9 in American Falls.

Viterra workers approve contract, strike over

Canada, News Briefs

Regina-Viterra Inc. said Sept. 25 that employees belonging to the Saskatchewan Operations and Maintenance bargaining units have voted 87 percent in favor of accepting the company’s offer. There are some 650 employees in the units. Voting occurred in the country over the past ten days. Regina office workers had already approved the deal and went back to work Sept. 22. “Our goal is to have a common labor platform across Viterra, and today’s announcement represents another important step towards achieving that. These employees now have long-term labor stability, with market based compensation and benefits, and the same fair and flexible terms and conditions enjoyed by the majority of our employees across our company, including our managers,” said Colleen Vancha, Viterra’s vice president of investor relations and corporate affairs. Viterra’s five-year offer consists of a 6 percent compensation payment on signing and annual increases based on performance of 6, 5, 5, and 5 percent, in addition to an annual incentive program that has the potential to add to an employee’s total compensation in the range of 5, 10 and 15 percent of their pay. Services at the country locations were uninterrupted during the labor dispute.

CF says all Donaldsonville units back up

Eastern Cornbelt, News Briefs

Deerfield, Ill.-CF Industries Holdings Inc. said Sept. 25 that all ammonia, urea, and UAN plants at its Donaldsonville, La., nitrogen complex have returned to production. The complex had undergone an orderly shutdown on Aug. 31, prior to the arrival of Hurricane Gustav, to prevent damage from the storm. “Our initial assessment proved accurate; there was no substantial damage to the complex, and none of our employees were injured by the storm,” explained Stephen Wilson, chairman and CEO. Electrical power was restored to the complex on Sept. 8, and a phased startup of the complex’s four ammonia, four urea, and two UAN plants began at that time. The last production unit, Urea Plant No. 2, started production Sept. 24. CF’s Wilson noted that despite the loss of production, the company expects to meet all customer commitments for the fall season.

Regulators approve Yara/Saskferco deal

News Briefs

Oslo-Yara International ASA said Sept. 25 that it has obtained approval from the Federal Trade Commission in the U.S. and the Canadian Federal Minister of Industry under the Investment Canada Act in connection with Yara’s proposed acquisition of all of the outstanding shares of Saskferco Products ULC. Yara has now received all regulatory approvals necessary to complete the investment. Yara’s President, Thorleif Enger, said he was “delighted with the Minister’s approval,” which he noted is consistent with Yara’s belief that, “through Yara’s commitment to the growth and expansion of Saskferco, the acquisition will be of great benefit to both Yara and Saskferco, as well as to the Province of Saskatchewan and to Canada as a whole.” He added that the investment perfectly complements Yara’s existing commercial activities in North America, and that Yara will provide Saskferco with “new ownership committed to investing in Saskferco as part of Yara’s core business.” Following the transaction, the new entity will continue to be headquartered in Regina as Yara Belle Plaine Inc., under the leadership of its existing management team, including D.F. Gill, who keeps his position as CEO, and Dennis Terry, who will continue in his role as chief financial officer. No significant changes in staffing levels, strategic orientations, or operations are expected as a result of the transaction. The official closing for the transaction is set for Oct. 1, 2008, after which Yara International will work on ensuring the smooth integration of Saskferco into its existing North American operations.

Union backs Simplot expansion plan

News Briefs, Pacific N.W.

Pocatello, Idaho-The United Steelworkers Union has officially supported the J.R. Simplot Co.’s expansion of its Smoky Canyon Mine by filing a motion to intervene in a lawsuit filed by the Greater Yellowstone Coalition against Simplot. In June, Simplot was given permission by both the U.S. Forest Service and Bureau of Land Management to complete mining two remaining sections of the company’s Smoky Canyon Mine. After the Forest Service dismissed the environmental group’s appeal against the two federal agencies, the Greater Yellowstone Coalition filed the lawsuit to block the mine expansion. Some local steelworkers believe the coalition’s move is a delay tactic aimed at eventually shutting down the mine. The union argued that would result in 350 workers at Simplot’s Pocatello phosphate fertilizer plant losing their jobs. The Don plant processes phosphate ore slurried from the Smoky Canyon Mine. Of the 350 employees at the Pocatello plant, 250 belong to the steelworkers union. “This lawsuit may be an interesting philosophical experiment for GYC, but for us, we are fighting for our careers, our families, our homes and our community,” said Steve Landon, local steelworkers union president.

California thieves get 600 pounds of amfo

Ammonium Nitrate, California, News Briefs

Nevada City, Calif.-The San Francisco Bureau of Alcohol, Tobacco, Firearms and Explosives field office has identified the explosives that were stolen from a storage bunker near Truckee sometime between Sept. 6 and 15 as ammonium nitrate already mixed with fuel oil for use in quarry or road work or similar construction projects. Acting ATF Special Agent in Charge Michael Gleysteen told Green Markets that the haul, which also included blasting caps, amounted to approximately 600 pounds. He also disclosed that the reward posted for information leading to an arrest and conviction and recovery of the explosives has been increased from $10,000 to $25,000. A licensed explosives blaster reported the theft on Sept. 17 to the Nevada County sheriff’s office, which was immediately joined in the investigation by ATF agents from the San Francisco area. “Our first and foremost concern is public safety,” Gleysteen commented. “We are seeking help from the public to locate these stolen explosives before they can be used to harm lives or property.” The scene of the theft from the explosives magazine is described as east of Truckee, Calif., and fairly close to Interstate 80, which is heavily traveled between Reno and San Francisco. News reports stated that the thieves removed the doors from the two steel vaults by sawing through the hinges. Gleysteen emphasized that the ammonium nitrate was not the agriculture or home and garden fertilizer variety, but was pre-mixed with fuel oil in what is typically called “amfo,” for use as construction explosives.

Quick action saves fish from fert tank leak

News Briefs, Western Cornbelt

Rake, Iowa-Quick action containing and cleaning up a release of 10,000 gallons or more of liquid fertilizer from a storage tank at Farmers Cooperative here is credited with averting a serious loss of fish in northern Iowa and southern Minnesota. Investigators in both states estimate that some 3,000 gallons of the 10-34-0 liquid got into a Minnesota stream and was responsible for the loss of minnows and a small number of northern pike. Iowa officials said they detected no dead fish in their state, but are still investigating the leak from a 500,000 gallon tank that was being filled at the Rake location. “The fish kill was pretty much minimized by installation of earthen dams on the Blue Earth River,” Hugh Valiant, area fishery supervisor with the Minnesota Dept. of Natural Resources, told Green Markets. No one was available for additional details at the co-op, but Iowa DNR Environmental Specialist Cindy Garza said the co-op constructed three dams to prevent the spread of the fertilizer and to prevent the impact on water quality in the Blue Earth River. She said the spill occurred while the tank was being filled after it had been cleaned out but apparently not inspected beforehand. About 220,000 gallons had been pumped in by the morning of Sept. 17, when the leak was discovered in the bottom of the tank. “They believe the bottom failed and broke the tank’s bladder, but have not made an inspection as yet,” Garza added. “This is one of those situations where regular inspections might have caught the structural failure earlier.” The liquid fertilizer saturated the pea rock under the tank and began boiling up around its edges. An unknown amount of fertilizer flowed into tile inlets, then traveled underground to a drainage ditch. DNR environmental specialists followed the flow to the north, where it entered a drainage ditch and flowed into Minnesota. A white precipitate was found on the stream bottom along with elevated ammonia levels, and investigators plan to conduct a fish count. They also detected high ammonia levels about two miles downstream in Minnesota along with the dead fish. Valiant said one advantage was that stream flows are low this time of year. “There’s not a lot of heavy flow to dilute the fertilizer,” he added. “The earthen dams helped to mound the water and allow it to be pumped out and spread on farmland.” He said it would have been more serious if the ammonia had contaminated the Blue Earth River, which he described as a good recreational fishery with a lot of walleye and channel catfish.

Mesa seeks potash in Utah

News Briefs, Potash, Vancouver

Vancouver-Mesa Uranium Corp. said Sept. 15 that it has filed potash exploration permit applications with the U.S. Bureau of Land Management. The 25,500 acre area (40 square miles) White Cloud potash project is located 40 miles north of the Lisbon Valley uranium project in southeastern Utah. Mesa says the project has excellent potential for potash from both solution mining and naturally-occurring potash brines. Access and infrastructure are considered good as the project is close to rail, interstate highway, and power lines. The White Cloud project is located in the Paradox Basin, a geologic province known to contain potash deposits and potash brine. The project is located 1.5 miles north of Intrepid Potash’s Cane Creek potash mine, with 2007 production of 77,000 tons of potash and 109,000 tons of by-product salt. Mesa is a resource development company focused on uranium and potash exploration in Utah and Arizona.

PhosCan board adopts shareholder rights plan

Canada, Eastern Canada, News Briefs

Toronto-PhosCan Chemical Corp. said Sept. 24 that its board of directors has approved the adoption of a Shareholders Rights Plan, effective immediately. The purpose of the plan is to provide shareholders and the board with additional time to assess and evaluate any unsolicited bid for the company, and to provide the board with adequate time to identify, develop, and negotiate alternatives to any unsolicited bid in order to maximize shareholder value. The plan is not intended to block takeover bids for the company that treat shareholders fairly, and is not being adopted in response to any proposal to acquire control of the company. The rights issued under the plan only become exercisable if a person, or a group of persons acting collectively, acquires 20 percent or more of the outstanding common shares of the company without complying with the permitted bid provisions of the plan. A permitted bid is a bid that meets certain specified conditions, including that the bid is made to all common shareholders by way of a takeover bid circular that remains open for a period of not less than 60 days; that no shares may be taken up and paid for unless more than 50 percent of the common shares held by independent shareholders are deposited and not withdrawn; and that the bid will remain open for a period of 10 days after the bidder announces that more than 50 percent of the shares held by independent shareholders have been taken up and paid for. In the event that a takeover offer does not comply with the permitted bid provisions, rights holders may purchase common shares of the corporation at 50 percent of the prevailing market price at the time the rights become exercisable. Shareholder ratification of the plan will be solicited at a shareholders’ meeting to be held on or before March 24, 2009. If ratified, the plan will have an initial term of three years. If not ratified at the meeting, the plan will terminate and cease to be effective. PhosCan is engaged in the development of the Martison Phosphate Project, which consists of the Martison Phosphate Deposit and a planned phosphate mine, beneficiation plant, phosphoric acid plant, and solid fertilizer production facility. The Martison Deposit is located 70 kilometers north of Hearst, Ont.