The US Department of Agriculture (USDA) announced that technology developer Novaphos Development LLC, Fort Meade, Fla., and Bluestem Systems, Howells, Neb., each will receive nearly $4 million to advance their projects under the Fertilizer Production Expansion Program (FPEP).
The $3.9 million Novaphos grant will be used to provide financing for engineering, working capital, and equipment upgrades to expand production at Novaphos’ pilot facility in rural Florida. Novaphos, which produces superphosphoric acid (SPA) used in liquid ammoniated fertilizers, anticipates the expansion will increase current plant capacity to 50,000 st/y.
The scope of the award will also include design and engineering for a larger-scale facility capable of producing 22,000 st/y of SPA and 90,000 st/y of J-Rox ™ when complete. The Novaphos project is expected to create 13 additional positions in rural areas.
“Novaphos technology represents groundbreaking innovations that will completely revolutionize how phosphate is mined and processed, with increased efficiency at lower cost, higher margins, and reduced environmental damage,” said Novaphos CEO Timothy Cotton. “Perhaps most important, it will help ensure that enough phosphate will remain available for future generations.”
Novaphos said its technology produces high-quality phosphoric acid from low-quality phosphate rock without large-volume wastes, such as phosphogypsum, or the need for inputs such as ammonia and sulfur. The technology has the added benefit of producing a calcium silicate co-product – J-Rox ™, which can be used in construction as well as a silicon fertilizer, with a net negative GHG footprint.
“This grant will significantly assist our current efforts to scale operations and production efficiently and swiftly in the United States,” Cotton added. “This will help ensure the US continues to benefit from a robust and long-term domestic supply of phosphates. We are thankful that the USDA recognizes American-driven innovation, and receiving this FPEP grant certainly verifies and reaffirms our work and development over the last decade.”
Novaphos signed a ten-year offtake agreement with MacroSource LLC, Savannah, Ga., to purchase SPA from Novaphos (GM Sept. 30, 2022). At the time, Novaphos said it was seeking up to $5 million in FPEP grants.
USDA is providing nearly $4 million to Bluestem Systems to build facilities and purchase equipment at three locations in Iowa and Nebraska. The facilities will help the company make advancements in its process to remove water and pathogens to create a dry fertilizer mix. The project is expected to yield 3,800 st/y of dry fertilizer and 11,400 st/y across all three facilities, which will be made available to 1,500 producers.
USDA on March 28 announced that since the start of the Biden administration it has invested more than $174 million through FPEP to support 42 projects nationwide to boost domestic fertilizer production. A total of $500 million is available under the program.
FPEP provides grants to independent farmers and agricultural business owners to help them produce fertilizer. Funds can be used to modernize equipment, adopt new technologies, build fertilizer production plants, and more. The program is aimed at boosting domestic fertilizer production while lowering costs and creating new income streams for US farmers.
USDA also announced on March 28 that it is investing more than $120 million in 541 Rural Energy for America (REAP) projects across 44 states. Through REAP, it provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas.
Since the start of the Biden administration, USDA said it has invested more than $1.8 billion through REAP in over 6,000 renewable energy and energy efficiency improvements in rural areas.