The Mosaic Co., which has been looking at building an ammonia plant in Louisiana, is focusing on its existing site at Faustina, La. Gov. Bobby Jindal and The Mosaic Co.’s Richard Krakowski announced Mosaic is beginning front-end engineering and design work on a potential $700 million ammonia production plant at the company’s existing Faustina site in St. James Parish. The project would create 53 new direct jobs paying an average of more than $83,000 a year, plus benefits, and LED estimates an additional 366 new indirect jobs would result from the expansion. An estimated 1,400 workers would be required for construction of the plant.
Mosaic operates two Louisiana chemical facilities on opposite banks of the Mississippi River: Faustina on the west side and Uncle Sam on the east side. Combined, the current facilities employ 379 direct Mosaic employees, who are supported by 235 contract employees. The project would nearly triple existing Faustina production of ammonia, with all the new production destined for sister Mosaic sites in Florida that also manufacture the company’s crop nutrient, or fertilizer, products in Florida.
Gov. Jindal said, “Mosaic could have looked at other states but chose Louisiana because of our strong business climate, skilled workforce and incredible infrastructure in the chemical and petrochemical industries. Mosaic said that favorable natural gas prices in Louisiana will allow them to bring back more ammonia production from overseas. Louisiana not only has these favorable natural gas prices right now, but energy forecasts show the wide split between the price of oil and natural gas continuing well into the future, which means there will be more and more companies who want to invest here and create jobs. It’s part of the renaissance that chemical and energy industries are experiencing right now in Louisiana, and we will continue to make sure we are fostering an environment where more companies want to invest and create jobs for our people.”
Currently, Mosaic makes phosphoric acid at its Uncle Sam plant, combining sulfuric acid and phosphate rock shipped to the state from company mines in Florida and Peru, as well as some imported rock from other sources. The phosphoric acid is shipped by barge across the river to the Faustina plant, where chemical processes combining phosphoric acid and ammonia produce granular, finished fertilizer products for agricultural use. A similar process occurs in Florida, where Mosaic manufacturing sites are currently importing ammonia from Trinidad, Russia and the Middle East. Favorable natural gas prices in Louisiana create a more attractive economic environment for Mosaic to produce its ammonia requirements rather than depend on overseas sources of supply.
“As the world’s leading producer of phosphate and potash crop nutrients, Mosaic’s mission is to help the world grow the food it needs,” said Krakowski, Supply Chain vice president. “Our Louisiana operations are vital to that mission and ammonia is an essential part of our manufacturing processes. Louisiana is a terrific place to do business, and we’ve received great support thus far from state, local and economic development officials. We’re eager to conduct the engineering and design evaluation that will lead to a final investment decision next year.”
Mosaic expects to make its final investment decision in mid-2013, after the detailed engineering design and cost evaluation of the project are completed. Construction would start in 2014, with commercial operation of the plant likely to begin in early 2016. The 53 new direct workers would be hired in phases during construction.
LED’s Business Expansion and Retention Group, or BERG, began discussions with Mosaic about the project in December 2011 and was joined by regional and local economic development partners. To secure the pr