Indian Farmers Fertiliser Co-operative Ltd. (IFFCO) on Oct. 9 confirmed plans to build a C$1.2 billion nitrogen fertilizer plant in Quebec in partnership with Montreal-based La Coop fédérée. IFFCO said construction will begin in two years pending the results of a feasibility study and remaining capital raising efforts, with production of urea at the facility slated for 2017.
The site chosen for the plant is Quebec’s Becancour Waterfront Industrial Park, which has port and rail access. The plant would produce up to 1.2 million mt/y of urea, which would be shared evenly by IFFCO and La Coop. IFFCO officials said the company plans to sell its share of urea from the plant to Quebec customers first, followed by customers in the rest of North America, with the balance to India.
La Coop, which purchased Agrico Canada Ltd. in 2011, reported that its share of urea from the plant will be sold to its customers in Quebec and the Northeastern U.S.
The companies said 45 percent of the equity in the facility has yet to be raised. IFFCO would hold about 25 percent of the equity, La Coop about 12 percent, and the Quebec government 18 percent.
Earlier this summer IFFCO issued an Expression of Interest regarding the engineering and construction of an ammonia and urea complex in Eastern Canada (GM June 9, 2012). IFFCO at that time formed a joint venture called IFFCO Canada Enterprises Ltd. with Pacific Gateway Energy (PGE), an investment company formed to take an equity stake in IFFCO Canada.
PGE reported that it visited more than 50 sites in North America, and chose Quebec as an ideal location for the new plant (GM Sept. 7, 2012). In addition to its proximity to La Coop’s target North American market, the Quebec site allows IFFCO to easily export urea through the St. Lawrence Seaway.