BioNitrogen picks Lubbock for first urea plant

Doral, Fla. — BioNitrogen, a developer of a patent-pending technology for converting renewable and abundant biomass waste into urea, says it has secured a 49-acre parcel of land to construct the company’s inaugural plant in Lubbock, Texas. Lubbock was selected because the site is close to the company’s engineering and construction office, also located in Lubbock. As a result of this proximity, the company intends to utilize the plant as BioNitrogen’s primary research and development facility to develop and refine technological enhancements to the company’s products and processes. BioNitrogen expects to complete the land purchase after concluding an Environmental Site Assessment (ESA). The company has already engaged X8 Engineering, which anticipates completion of the ESA no later than March 12, 2012. BioNitrogen expects to begin construction of the plant after evaluating, obtaining, and finalizing its financing and engineering options for the construction and commissioning, which it expects to complete in the coming weeks. It anticipates that the total cost to construct the plant will be approximately $65 million. The modular plant has a design capacity capable of manufacturing up to 15 st of urea fertilizer per hour for a total annual production of up to approximately 124,200 st/y per plant, which anticipates 20 days for equipment maintenance and upkeep. The company estimates that the annual economic potential associated with the proposed Lubbock plant could be as much as $77.3 million. Additionally, the 49-acre land parcel would allow the company to increase the size of the production facilities, which in turn is projected to double the proposed output capacity. The additional capacity would be used to produce UAN as well as granular urea. As previously announced earlier this month (GM Feb. 6, p. 12), BioNitrogen has entered into a Letter of Intent with United Suppliers for the purchase of up to 300,000 st/y of urea in granular or prilled grade form. The binding agreement, currently under final negotiation between the two parties, will be for an initial term of three years. BioNitrogen projects that the economic potential benefit could be as much as $558.9 million.