Farmer-owned Genesis Fertilizers LP, Saskatoon, has launched a C$400 million capital raise to build a $1.5 billion urea plant in Western Canada that would produce 700,000 mt/y. The company said 525,000 mt/y would be available for purchase by farmers through an offtake arrangement, which it said represents less than 20 percent of the current urea usage in Western Canada. Potential sites are being considered in Alberta, Saskatchewan, and Manitoba.
Genesis CEO Jason Mann said the plant would be a “game-changer” in Canadian agriculture. “We have a lot of challenges in front of us, it’s a huge $1.5 billion dollar project; however, the time is right, and we are ready to take on the task.”
The proposed urea plant appears to be similar to ProjectN, a $1.7 billion nitrogen plant proposed by Genesis in 2012 to be located in Belle Plaine, Sask. (GM Oct. 1, 2012). Genesis had not responded to inquiries at press time.
Genesis LP was started by Saskatoon-based Farmers of North America (FNA) as a vehicle through which its farmer-members could fund both production and distribution assets.
Genesis also reports that the construction of its first planned SuperCenter, which will be located in Belle Plaine, Sask. (GM Feb. 3, 2017), is now moving forward. The company plans seven such SuperCenters across Western Canada. Genesis Grain & Fertilizer LP, which is building the Belle Plaine facility, was formed in 2014 by FNA.
At last report in 2017, the Belle Plaine SuperCenter would cost C$24 million and include 52,000 mt of storage capacity for urea, phosphates, potash, sulfur, and micronutrients. In all, three SuperCenters were planned, one each for Saskatchewan, Alberta, and Manitoba.
Genesis said farmers in Western Canada pay more for nitrogen fertilizer than anyone in North America, yet they farm in an area where it costs the least to manufacture. Genesis said it would offer a made-in-Canada, farmer-owned solution to a problem that until now, farmers have had little ability to resolve.
Genesis said the facility, in combination with the seven planned distribution SuperCenters, would support Western Canada farmers by giving them access to a consistent supply of fertilizer without high freight costs due to import prices.
The company said with nitrogen use growing at an average rate of 4 percent annually, investing now in this type of production facility made sound economic sense. It also noted that interest rates are at a historic low and commodity prices are strong, with Canadian farmers looking to make a long-term investment that can control their future fertilizer expenditures with their involvement.
The company said the plant, which would be the first greenfield urea plant in Canada since 1992, would create three years of construction-related jobs, and upon completion, the facility would provide over 500 direct, indirect and induced full-time jobs.