Miami — BioNitrogen Corp., which is developing a patent-pending technology for converting renewable biomass waste into urea (GM Jan. 30, 2012) said Feb. 2 that it has entered into a letter of intent with United Suppliers Inc., Eldora, Iowa, for the purchase of up to 300,000 st of urea annually in granular or prill form. It said the binding agreement to be entered into will be for an initial term of three years. "As agricultural retailers who do business throughout the United States we are challenged to keep up with the dramatic changes that are happening in the agriculture industry," said Matt Carstens, United Suppliers vice president of Crop Nutrients. "We are committed to creating long-term relationships with both our agricultural retail dealer owners and our suppliers. We are constantly developing innovative products, programs, and services and see a close and longstanding relationship with Dr. Collins and his team at BioNitrogen." BioNitrogen said the final agreement is expected to close in the coming months and will detail, among other mutually agreed upon particulars, product specifications, method of delivery, pricing, and payment. The projected start date is currently set as 3rd to 4th quarter 2013, and will be defined in the final agreement. Further, BioNitrogen said it is understood that there will be no penalties for any delays in start-up, and both parties further agree that the number of plants constructed, and timing of such plants, may determine the initial ramp-up period. BioNitrogen says its small, modular urea plants can produce up to 124,200 st/y and be located in agricultural areas where they can easily source biomass from farmers, and in turn supply them with urea.
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