Genesis Fertilizers LP, Saskatoon, announced on Jan. 11 that it has chosen Belle Plaine, Sask., as the site for its proposed 700,000 mt/y urea plant (GM June 11, Oct. 22, 2021). The project will also include ammonia production to supply the urea plant. Genesis said it is proceeding to secure land to accommodate the building of this facility. The company also contemplates a network of distribution facilities or SuperCenters across the Prairies.
“Farmers across Canada, together with our management team, have been looking for the right opportunity to move this project forward,” said Jason Mann, Genesis President. “The Saskatchewan Government’s commitment to creating a competitive business environment with a strong suite of incentives will support the agriculture sector and help this project address the challenge of high fertilizer prices.”
Genesis Fertilizers was founded on a business model whereby farmers will not only be customers of the proposed new fertilizer plant, but also be the majority owners. “Canadian farmers will be the real winners with Genesis Fertilizers positioned to move forward. Whether from B.C., the Prairies, or Eastern Canada, if this project is completed, being a farmer-investor will help farming operations manage their fertilizer costs, supply availability, and ultimately keep industry profits local,” said Barrie Mann, Genesis Vice President, Investor Relations.
Genesis said it has significant work ahead in the capital raise and engineering design process to move the project to the construction phase, however, it said choosing the site and gaining support of the province of Saskatchewan is a significant milestone. It is currently in the process of raising equity and debt capital to facilitate the engineering and construction of the urea plant, along with six distribution facilities.
Genesis already has one of its SuperCenter distribution facilities in operation in Belle Plaine (GM June 11, 2021). It plans for the urea plant to be at the same location.
Genesis estimates the $1.7 billion project will, if constructed, generate over 5,000 man-years of employment during the design and engineer phase, combined with the estimated 32-month construction period. The ongoing operations would support over 130 full-time jobs when the proposed plant begins producing urea fertilizer. Financial spin off effects during and after construction are expected to be significant for all of Western Canada, which includes fabrication, services, transportation, and ongoing tax revenues.
Genesis is a privately held limited partnership, and its securities do not trade on any exchange.