Plymouth, Minn.-The Mosaic Co. has announced that Mosaic Fertilizer LLC, a wholly-owned subsidiary, has signed a 15-year ammonia offtake agreement with Faustina Hydrogen Products LLC, an affiliate of US Syngas LLC (USS). The term of the ammonia offtake commences upon startup of a petroleum coke gasification project to be constructed adjacent to Mosaic’s Faustina phosphate manufacturing plant in St. James Parish, La. USS is acting as lead sponsor of the project. The agreement provides that Mosaic will purchase a majority of the approximately 1.3 million tons of anhydrous ammonia that would be annually produced at the petroleum coke complex. The agreement is subject to various conditions, including, among others, USS’s ability to obtain adequate financing to construct the petroleum coke complex, and the successful completion and startup of the project. Assuming financing is obtained prior to the end of this calendar year, the project is anticipated to begin operations in 2009. In April 2006, Mosaic announced a non-binding letter of intent with USS to pursue the development of the petroleum coke project (GM April 17, p. 1).
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