Brandon, Manitoba-Koch Fertilizer Canada Ltd. has a new four-year contract with the United Steelworkers Local 7184, according to the union, which said its members ratified the settlement. The contract is the first one negotiated since Koch purchased the plant from the previous owner, Simplot Canada Ltd. The union said it provides a 15.5 percent wage increase over the life of the agreement, along with an 11 percent increase in the employees’ defined pension benefit plan. Transition issues associated with the new ownership and subsequent workforce reduction were also addressed through negotiations. The 120 workers at the Brandon plant work for a subsidiary of Kansas-based Koch Nitrogen Co., which through its affiliates produces more than 7 million mt of fertilizer annually.
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Rentech reports more progress on E. Dubuque
Los Angeles-Rentech Inc. has announced that it has entered into a services agreement with CB&I relating to the conversion of the Rentech Energy Midwest Corporation (REMC) facility in East Dubuque, Ill., from natural gas to a gasification-based fertilizer and ultra-clean synthetic fuels facility. Under the terms of the agreement, CB&I will perform engineering and design services for Phase 1 of the conversion, which will involve converting the feedstock from natural gas to coal using gasification technology. Rentech and CB&I will also take the steps necessary to develop a lump-sum engineering, procurement, and construction (EPC) contract. During Phase 1A of the conversion, equipment will be added to produce ultra clean fuels from gasified coal using Rentech’s proprietary and patented advanced derivative of the Fischer-Tropsch process. Upon the expected completion of the plant conversion by 2010, Rentech believes REMC will be the first ultra clean synthetic fuels and fertilizer facility in the U.S. REMC expects to produce at least 1,250 barrels per day – or 17.8 million gallons – of ultra clean Fischer-Tropsch fuels annually. The facility is also projected to produce approximately 545,000 st of ammonia and other nitrogen fertilizer products per year, and to be developed as a “carbon capture ready” facility. Rentech is evaluating marketing opportunities for commercial uses of the captured carbon dioxide.
Bayer CropScience files imidacloprid suit
Research Triangle Park, N.C.-Neither Vogel Seed & Fertilizer Inc. nor NuFarm Americas Inc. had any public response to a lawsuit filed by Bayer CropScience claiming infringement of Bayer’s patented use of the pesticide imidacloprid on fertilizer. The suit, filed in U.S. District Court for the Eastern District of Virginia, seeks to halt NuFarm’s and Spring Valley’s joint actions to formulate and sell imidacloprid on fertilizer. Bayer contends these actions violate the Bayer-owned patent and seeks to have the court uphold its patented uses. Bayer says in the suit that it is the inventor of the mixture of imidacloprid on fertilizer, sold under the brand name Merit Plus Turf Fertilizer; and claims users have enjoyed the benefits of the patented technology for over 10 years. The company says the technology revolutionized insect control on lawns and golf courses while providing significant application convenience to users.
MagMinerals hires contractor for Congo K mine
Toronto-MagMinerals Inc., a unit of MagIndustries Corp., said June 29 that it has selected Consolidated Contractors International Co. S.A.L. (CCC) to assist with the completion of detailed capital cost estimates for the installation of the Kouilou Potash Plant in conjunction with SNC Lavalin International Inc. (SLII). SLII was previously contracted to complete the overall potash plant feasibility study. MagMinerals is on track to receive the SLII study in the fourth quarter of 2007. CCC, a top tier international contractor based in Athens, Greece, employs over 105,000 people in its worldwide operations and has completed numerous large-scale projects in many regions of the world, including Africa. The Kouilou Potash Project is located in the Republic of Congo, just 15 kilometers from Pointe-Noire, a busy deepwater Atlantic port city. The Kouilou Project is based on the solution mining of the company’s extensive carnallite salt deposits and will utilize locally available flared-gas, which will support brine dehydration and plant operations. As announced in March, HPD – previously US Filter and now controlled by Veolia Environmental – has been contracted to supply the crystallization technology. Phase I of the Kouilou operation has a planned capacity of 580,000 mt/y of potassium chloride (KCl), equivalent to approximately 350,000 mt/y K2O. The product output will be mostly granular KCl, which will be directed primarily to the target markets of South Africa, Brazil, and Europe. The current delivered price in these markets is about US$250/mt, according to MagIndustries. The Kouilou Plant is expected to be commissioned by late 2010, with first shipments in early 2011.
Harkin touts ammonia tank lock program
Washington-Sen. Tom Harkin (D-Iowa) reports that all 99 counties in Iowa now have been provided with tank locks for anhydrous ammonia tanks. The project began in 2002 with $200,000 to buy tank locks in areas with the highest number of meth labs and has since expanded, allowing law enforcement to secure thousands of locks at a cost of about $45 each. Harkin also says Iowa has the strictest pseudoephedrine control law in the country.
Florida county tables fertilizer ordinance
Sarasota, Fla.-The Sarasota, Fla., Board of County Commissioners voted on July 11 to table an ordinance that would have restricted the use of fertilizers in the county for both residential and commercial applications. The measure would have regulated the amount, frequency, and distance from waterways of fertilizer applications, which are believed to play a role in the formation of red tide, an algae bloom that can have devastating effects on marine life. The vote was postponed because commissioners and staff could not come to an agreement on enforcement and other legal aspects of the proposal. The proposal could come back for a vote in August.
Coal ash coating makes AN less explosive
Lexington, Ky.-A University of Kentucky researcher has found that adding coal ash makes ammonium nitrate less explosive and could be used to treat the entire annual production of this type of fertilizer for $10-$15 million. “We found that not only does it appear to be as effective in agriculture as a fertilizer, but it would have a longer shelf life than pure ammonium nitrate,” said Darrell Taulbee, a research scientist and industrial support coordinator at the university’s Center for Applied Energy Research. Taulbee has been researching ammonium nitrate coating on a $125,000 grant from the National Institute for Hometown Security, a DHS contractor, testing a variety of concentrations and using makeshift bombs to gauge how much of the explosive power was suppressed. He determined that a 20 percent ratio of coal ash to 80 percent ammonium nitrate prevented large blasts, even when the samples were crushed. “So far we have only demonstrated its effectiveness in stopping the propagation of the AN explosion,” Taulbee told Green Markets. “We also conducted some scoping lab studies that indicate the bulk density, particle size distribution and nitrogen-release rate are suitable for agricultural applications using existing farm equipment. However, these would need to be confirmed in the field in crop studies by looking at growth rates, trace element uptake, and application properties.” He said the detonation results would also need independent confirmation by experts in the field such as ATF, DHS, and New Mexico Tech., which have indicated an interest. By the time the funding is secured and the tests are conducted, he estimates that it will be a minimum of two years before the process could be available commercially. The material itself wouldn’t represent a high cost, but increased transportation costs would be a different matter. “However, I personally don’t think that farmers should be asked to bear the added cost for something that would benefit society,” Taulbee suggested. “I think subsidizing the coating of our entire annual production of ag-grade AN for $10 million to $15 million would be a drop in the bucket for the Homeland Security budget.”
Ill. plant to gasify soybeans into fuel and fertilizer
Princeton, Ill.-Ribbon-cutting ceremonies were held last month for a proposed plant that will generate renewable power from soybeans and produce synthetic oil and an organic-based fertilizer from the waste material. The plant, at the site of a former Ag View FS outlet, is the result of a joint venture between U.S. Sustainable Energy (USSE), Natchez, Miss., and Illinois Biofuel Group. USSE officials said the Illinois facility will be similar to the company’s R&D facility at Natchez, where the first four commercial reactors are being completed. General Manager Jerry Brent told Green Markets a 7-3-7 fertilizer is what’s left over after the soybean feedstock is gasified with a proprietary catalyst in a reactor at 800 to 850F. The gas is turned into oil in a condenser, and the leftover vapor is used to operate the power plant. “The fertilizer drops out of a vacuum system used to operate the reactor,” Brent explained. Illinois Biofuel President Dennis Radcliff said the plan is to construct two facilities – one to produce biodiesel fuel, and the other to produce biofuel, electricity, and the fertilizer. “The USSE/SSTP process is groundbreaking because of the enormous yield per bushel of soy it produces,” Radcliff reported. “Because the USSE process is 8-1/2 minutes from bean to fuel, the processing costs are 50 percent less than other competitive methods. Lastly, we can purchase from the farmers off spec soybeans not fit for normal use.”
Kern to ban raw manure for crops
Bakersfield, Calif.-Kern County officials expect to be adopting in September a ban on the use of un-composted or raw manure on crops grown for human consumption in response to the e-coli scare with leafy green produce last year. But that doesn’t mean there is lot of unprocessed manure being used in this large agriculture community, since a recent quick survey by the county agriculture commissioner didn’t find any farm use of this type of manure. Brian Pitts, chief of environmental health, told Green Markets after the board of supervisors put off final action last week to allow farmers to provide their input that he is confident an ordnance of some type will be passed on Sept. 11. No word has been received from the fertilizer industry, but Pitts expects support from area growers because “farmers here are increasingly interested in producing a safe product.” Pitts said one change under consideration is to allow raw manure to be used on crops that are grown for pasteurizing, such as canned corn and beans. Kern County was in the news last year when citizens voted to prohibit biosolids from being trucked in from Los Angeles and other nearby areas. That matter has yet to be resolved in the courts, however.
Management Briefs
Steve Markey joined Agrium Inc. as director of purchasing July 9. He is based in the company’s Denver office, and was most recently with CF Holdings Inc. and Agriliance LLC.
John (Jack) W. Lewis retired on June 15 after 54 years of service with Southern Stevedoring Co. LP, a limited partnership of Kinder Morgan Inc. Lewis handled the potash movement into Houston and Beaumont, Texas, since 1961, and was president of Southern Stevedoring Inc. until May 1, 2005, when Kinder Morgan bought the company and changed its name. Since then, he served as general manager of the new company.
The Yara Foundation has awarded the African Green Revolution Yara Prize for 2007 to Josephine Okot and Akinwumi Adesina for their pioneering work with agricultural inputs and agrodealer networks. The Yara Foundation recognizes their contributions to boosting agricultural productivity and creating livelihood opportunities for communities across Africa. As the founder and managing director of Victoria Seeds Ltd, Yara said Josephine Okot is ably demonstrating how to develop new markets and a local private-sector agricultural inputs industry in her native Uganda. Akinwumi Adesina is widely known for his efforts to make farm inputs available to poor smallhold farmers. He developed a rural agrodealership model to allow owners of small village shops to develop into agrodealers selling agricultural inputs. He helped the Rockefeller Foundation develop a program that provides technical training and certification to this network of agrodealers. Adesina is currently associate director, Food Security and Africa Regional Program, at the Rockefeller Foundation.