All Posts from April 12, 2024

Ginkgo Bioworks, Certis Biologicals Buy AgBiome Assets

Featured, U.S.

Boston-based Ginkgo Bioworks, which is building a platform for cell programming and biosecurity, and biological pesticides provider Certis Biologicals, Columbia, Md., have separately announced that they have bought assets from AgBiome, Research Triangle Park, N.C.

Ginkgo on April 11 said it has acquired AgBiome’s platform assets, including over 115,000 fully sequenced and isolated strains, over 500 million unique gene sequences, and relevant functional data and metadata, as well as AgBiome’s development pipeline.

“We are so excited to bring AgBiome’s incredible strain and metagenomic collection into Ginkgo,” said Michael Miille, Gingko Fellow. “This is a world class asset that will significantly expand our capabilities and can directly benefit Ginkgo’s customers in the ag biologicals space. In addition to the platform assets and capabilities, the product concepts pipeline that has been validated by AgBiome to date provides an exciting opportunity to give customers a head-start in their product development efforts.”

“These assets represent a massive, ground-breaking investment into exploring and characterizing microbial diversity for human benefit, and we can’t think of a better home for them than the Ginkgo platform,” said Laura Potter, Agbiome Chief Science Officer.

Ginkgo said the assets will be integrated into Ginkgo Ag Biologicals Services, established with the acquisition of a Bayer agricultural biologicals R&D facility in 2022, and will expand Ginkgo’s proprietary unified metagenomics database. It said combined, this creates one of the deepest and most advanced ag biological discovery and development platforms as well as a rich resource for the development of AI models for biological R&D.

Founded in 2012, AgBiome has worked to generate an extensive collection of biological products and technologies through its Genesis Discovery Platform, including agricultural products, bioactive ingredients, and gene editing tools.

AgBiome has successfully commercialized multiple biological products, including the Howler® and Theia® fungicide product lines, which, along with other “multiple assets,” are being bought by Certis, a wholly-owned subsidiary of Mitsui & Co, according to March 18 announcements by Certis and AgBiome. The two fungicides will be added to the Certis portfolio of more than 40 products that control pests, diseases, and weeds.

“Howler and Theia complement our existing portfolio of biofungicides, including Double Nickel® and our newest product for large-acre crops, Convergence®,” said Chris Judd, Vice President, North America, Certis Biologicals. “These products will constitute a fungicide portfolio that can provide unmatched control for all growers, from specialty and high-value crops to large-acre commodity crops.”

“AgBiome’s products, Howler and Theia fungicides, are the most effective biological fungicides with unique modes of action and efficacy similar to synthetic chemicals but with substantial environmental benefits,” said Scott Rabe, AgBiome Head of Product Development. “We are delighted that a company like Certis Biologicals, with a deep commitment to these products, will steward their future growth and development. More growers than ever will be able to see firsthand the benefits of these products.”

While AgBiome has received multiple major grants from the Bill and Melinda Gates Foundation and other investors, in October 2023 it said it was having trouble raising capital and was developing plans to lay off potentially all of its employees (GM Oct. 27, 2023). AgBiome had not responded to inquiries at press time.

Sunoco, NuStar Waiting Period Expires; $7.3 B Transaction Advances Toward Completion

Ammonia, Featured, Low-Carbon, Midwest, Texas, U.S., West Coast

Dallas-based Sunoco LP and NuStar Energy LP, San Antonio, Texas, on April 9 announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), in connection with Sunoco’s $7.3 billion acquisition of NuStar (GM Jan. 26, p. 1). They noted that the expiration is an important condition for the completion of the transaction.

A NuStar unitholder vote is scheduled for May 1. The transaction is expected to close shortly after unitholders give approval to the deal.

The acquisition will expand Sunoco’s crude oil transportation and storage. NuStar’s assets, which include pipelines and terminals for ammonia, oil, chemicals, and other fuel-related products, are mainly in the Midwest and West Coast.

Sunoco said the deal will allow it to diversify, increase its ability to use more of its own terminals, buy up a key part of its supply chain, and allow it to optimize fuel supply cost. It will also allow Sunoco to expand its presence across more of the US, the company said.

NuStar has 9,500 miles of pipeline and 63 terminals, while Sunoco is the largest US independent fuel distributor with 42 product terminals, serving motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers, and distributors located in more than 40 US states and territories.

Sunoco CEO Joseph Kim told analysts that the company would be able to accelerate expansion opportunities within the NuStar Ammonia System’s 2,000-mile ammonia pipeline. The company sees the potential due to the growing low carbon ammonia capacity, which benefits the pipeline and storage and export out of its St. James, La., facility.

“In fact, projects have been announced for construction in the US for low carbon ammonia production totaling about 38 million tons per year that will be in service between 2025-2030,” NuStar CEO Brad Barron told analysts in a Nov. 2 earnings call.

Barron said that because NuStar’s system runs through the Midwest down to the Gulf Coast, where the vast majority of the announced production capacity will reside, and because of NuStar’s decades of experience in ammonia transport, the company is ideally positioned to become the premier low carbon ammonia provider in the US and to provide export service to Asia, Europe, and other markets.

Barron said the company does not have to expand pipeline capacity but just add connections. Going forward he expects additional volumes from new demand, with firm space on the line garnering a premium. NuStar expects to announce a project with a large global ammonia producer in early 2024. The company spent $25 million for expansion in the segment in 2023.

NuStar was expected to connect a 14-mile ammonia pipeline to OCI Global NV’s Iowa Fertilizer Co. (IFCO) in Wever, Iowa, earlier this year (GM May 5, 2023). The 2,000 pipeline spans seven states from Louisiana, north along the Mississippi River to Missouri, and then northwest and east, to Nebraska and Indiana.

NuStar’s is the only US ammonia pipeline after Magellan Midstream Partners LP’s 1,100-mile line from Borger, Texas, to Mankato, Minn., gradually closed a few years ago (GM March 19, 2021; Aug. 9, 2019).

Talc to Increase Capacity with Illinois Production Facility

Featured, U.S.

Talc USA, Page, N.D., a developer, manufacturer, and marketer to talc-based ag products, announced on April 8 that it is preparing a new facility in Curran, Ill., to increase its production capacity in the US while reducing shipping costs to its end farmer customers.

Talc, which is majority-owned by specialty ag products producer Brandt, Springfield, Ill., said the production line is scheduled to be completed in third-quarter 2024 in time to supply the 2025 planting season. The new production line will manufacture all Talc products, including the company’s newest and most advanced HomeLAND™ products for corn and soybeans.

“As we continue to integrate our operations into Brandt, it makes good business sense to co-locate our manufacturing line in Illinois and take advantage of Brandt’s production expertise,” said Steve Johnson, Talc Founder. “And frankly, we needed to be able to produce more product as the demand for our cutting-edge technologies escalates. Farmers are seeing increased yield with smoother planting.”

The Curran production facility will fall under the supervision of the Brandt Dealer Support group. Ultimately, when fully staffed, it will require 5-8 additional full-time employees. Brandt is currently searching for a plant production manager to help recruit, train, and oversee the team.

“Growth is always a good challenge to have, and I’m proud of this next step in our business’ evolution,” Johnson said. “We are making a significant investment with this move, but we’re doing it right with new, more advanced, and bigger equipment than what we had in Page. We’re setting ourselves up for the future.”

In addition to its domestic growth, Talc has plans for international expansion and increased distribution as well. Subsequent announcements are expected later this year.

Founded in 2008, Talc offers a range of micronutrients, microbials, inoculants, and seed treatments to growers, as well as a proprietary mixing system, in addition to its flagship talc products. The company’s products are distributed in the US, Canada, Mexico, Ukraine, and South Africa.

Brandt acquired a majority stake in Talc on Dec. 31, 2021 (GM Jan. 14, 2022).

Brazil Potash Receives Mine License for Autazes Project

Belarus, Brazil, Canada, Featured, Israel, Potash, Russia

Toronto-based Brazil Potash Corp. on April 9 announced that the Amazon State Environmental Protection Institute (IPAAM) has granted the mine Installation License for the Autazes Potash Project to the company’s 100%-owned Brazilian subsidiary Potassio do Brasil. It said this is a major milestone coming after several years of environmental, social, and technical studies, as well as the successful completion of consultations with Indigenous Peoples.

“We are thrilled to receive the mine installation license from the Amazon State Environmental Protection Institute,” said Adriano Espeschit, Potassio do Brasil President. “For several years, Brazil Potash has been waiting for this moment to show that [it] is possible to have a sustainable mining operation in the Amazon region. With the Autazes Potash Project’s support from the Mura Indigenous people, we can show the world that it is possible to have more development for local communities with a better quality of life. This truly marks a win-win for Brazil’s economy, its people, and the world.”

“I am very proud of the years of permitting, indigenous, government, and community relations work completed by our team in Brazil headed by our President Adriano Espeschit, which has resulted in securing the mine Installation License,” said Matt Simpson, Brazil Potash CEO. “This is a major milestone to advance and derisk the development of the Autazes Potash Project as we move closer to the start of project construction.”

The company said this will finally allow construction to begin and it expects to start construction with the awarding of contracts for mine surface works and shaft construction. The company said the mine will be able to produce 2.4 million mt/y with the ability to increase production. The last price tag put on the mine was $2.5 billion.

Brazil Potash said the deposit can be mined and processed, using proven off-the-shelf environmentally friendly technology, to extract the ore using room and pillar mining, separate out the potash using hot water, and return the remaining material (sodium chloride tailings) back underground.

From an environmental perspective, Brazil Potash said the project has positive greenhouse gas credentials considering it will operate with predominantly green produced electric energy. Brazil domestic production also eliminates 12,000-20,000 kilometers of shipping to reach Brazil’s large soybean farmers in Mato Grosso.

The company noted that Brazil imports some 85% of its fertilizer needs and 98% of its potash, half of which comes from countries currently at war or sanctioned, including Russia, Belarus, and Israel, while Brazil has a massive potash deposit in its own backyard.

Brazil Potash said the project will have a positive impact on the economy and environment of the Amazonas state by reducing greenhouse gases by approximately 1.4 million mt/y and creating an estimated 10,000 new jobs, making it the largest contributor to the GDP for the state of Amazonas. In addition, the project will produce potash locally and sell it in local currency, thus saving Brazil roughly $1 billion in currency outflows.

The company said it is also committed to supplying potash in small quantities to domestic farmers as they need it, and to supporting the initiatives of the Brazilian government to restore degraded land.

Brazil Potash has also signed binding agreements with Amaggi Exportação e Importação Ltda. (Amaggi), one of the world’s largest privately held soybean producers (GM Oct. 7, 2022). The offtake would include take-or-pay for 500,000 mt/y, a marketing agreement to sell Potássio do Brasil’s remaining 1.9 million mt/y, and a barge transportation agreement to ship the initial planned 2.4 million mt of potash to inland ports close to major farming regions.

Argentina Announces Removal of Urea, UAN Tariffs

Argentina, Egypt, Featured, Nigeria, UAN, Urea

Argentine Minister of the Economy Luis Caputo posted on social media that the country will eliminate existing tariffs on urea and UAN of 5.4% and 3.6%, respectively.

Argentina’s main urea supplier is Egypt, with which it enjoys a duty-free agreement. Algeria and Nigeria also supply urea to the country. Should tariffs be removed, Egyptian product will likely face more competition from alternate sources that are currently subject to tariffs.

The minister added that elimination of tariffs would bolster competition in the agricultural sector, and he noted a sharp reduction in the prices of inputs, which he attributed to the improving state of the economy. No timeline for the elimination of urea and UAN tariffs was made public.

Argentina has one domestic urea producer, Profertil, which is owned by Nutrien Ltd. and the state-owned energy company YPF SA. 

OCI Supplies Low Carbon NH3 to COMPO EXPERT

Ammonia, Clean Ammonia, Germany, Low-Carbon, Nitrogen, NPK, The Netherlands

Amsterdam-based OCI Global is supplying low carbon ammonia to COMPO EXPERT, Münster, Germany, for production of its NPK fertilizers, with the first delivery taking place this week.

COMPO EXPERT will initially replace 25% of the ammonia it uses at its facility in Krefeld, Germany, with OCI’s low carbon product this year and has plans to further increase the ratio of OCI-supplied low carbon ammonia in its production over the next two years.

OCI sources the product from its Texas facilities via its ammonia terminal and distribution hub at the Port of Rotterdam. It guarantees a 60% lower carbon footprint than the industry standard. OCI has supplied COMPO EXPERT with ammonia for fertilizer production for more than a decade.

“We are significantly increasing our production of lower carbon ammonia, including at our Texas Blue Clean Ammonia facility currently under construction, which has capacity for an additional 1.1 million mt/y, and via our terminal in Rotterdam we will support the European decarbonization of existing industries and future energy and bunkering customers,” said Aviv Bar Tal, OCI Global Vice President, Nitrogen.

EverWind Completes FEED for Nova Scotia Plant

Clean Ammonia, Green Ammonia, Green Hydrogen, Low-Carbon

EverWind Fuels Co., Halifax, Novia Scotia, announced that it has completed its front-end engineering design (FEED) study on Phase 1 of its green hydrogen to green ammonia facility in Point Tupper, Nova Scotia.  The FEED was completed by Black & Veatch (GM Dec. 9, 2022).

Phase 1 of the Point Tupper Project will use PEM electrolyzers to separate water from the nearby artificial Landrie Lake, using renewable electricity generated by wind power. The project is expected to produce 240,000 mt/y of green ammonia. Production is expected to begin in 2026.

Fortescue, OCP Announce Green JV in Morocco

Australia, Clean Ammonia, Europe, Green Ammonia, Hydrogen, Low-Carbon, Morocco

Fortescue Energy, headquartered in Australia, and OCP Group of Morocco have announced a 50/50 joint venture to produce green ammonia, hydrogen, and fertilizer products in Morocco that will serve Morocco, Europe, and other international markets.

The joint venture will encompass four projects that include integrated production of green fertilizer and ammonia from renewable energy sources and electrolysis, the manufacturing of green technology and equipment, and an R&D Hub located by the Mohammed VI Polytechnic University near Marrakesh.

Dr. Andrew Forrest, Fortescue Executive Chair and Founder, cited Morocco’s prospective wind and solar resources, large coastlines, and proximity to Europe and the Americas as why Morocco will be a major player in the energy transition.

IFFCO, ACME Ink Clean Ammonia Deal in India

Ammonia, Carbon Dioxide, Clean Ammonia, DAP/MAP, India, Low-Carbon, NPK

Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) has signed an initial deal with ACME Cleantech Solutions in Gurugram, India, to purchase 2 lakh tonnes of ammonia per year – equivalent to roughly 200,000 mt/y – produced by renewable energy.

The ammonia will be manufactured at ACME’s plant in Gopalpur, Odisha, which will have a total production capacity of around 1.3 million mt/y of renewable ammonia when at full capacity.  The ammonia purchased by IFFCO will be used at IFFCO’s DAP Paradeep Unit in Odisha and at its DAP/NPK Kandla Unity in Gujarat.

ACME will retain a green credit in the form of an Internationally Transferable Mitigation Outcomes (ITMO) under Article 6 of the Paris Agreement from the sale of renewable-based ammonia. Each ITMO corresponds to one metric ton of carbon dioxide equivalent that has been reduced or removed. The ITMO can be traded with another country.

Intrepid Potash Inc. – Management Brief

Florida, Management Briefs, U.S.

Intrepid Potash Inc. announced on April 9 that company CEO Bob Jornayvaz was involved in an accident on April 6 while playing in the US Open Polo Championship. Local news reports from Wellington, Fla., said Jornayvaz was thrown from his horse and transported by helicopter to the St. Mary Medical Center, where he is currently receiving treatment. Jornayvaz was identified as the owner of the Valiente polo team.

“Our thoughts are with him and his family,” Intrepid said in a statement. “We will provide updates as more information becomes available.”

In other company news, Intrepid CFO Matthew Preston has decided to stay with the company. As previously reported, Preston had informed Intrepid that he would be leaving his position to pursue another business opportunity, effective April 12, 2024 (GM April 5, p. 26). However, after further discussion and negotiation, Preston notified Intrepid on April 10 of his decision to stay with the company, continuing in his role as CFO, including as principal financial officer under Securities and Exchange Commission rules and regulations.

As part of his decision to stay with Intrepid, Preston will receive an increase in annual base salary to $390,000 and a grant of restricted stock valued at $300,000, which vests in three equal annual installments beginning on April 10, 2025, subject to continued service with the company. Other than these changes, Preston’s compensation with the company remains as previously disclosed.

The Intrepid Board also reported on April 5 that Cris Ingold has been promoted to Chief Accounting Officer of the company, effective April 12, 2024. In this position, he will serve as the company’s principal accounting officer under SEC rules and regulations. Ingold, 59, has served as Intrepid’s Corporate Controller since November 2019. Previously, he served in successively more senior accounting roles since joining the company in 2011.

Before joining Intrepid, Ingold worked in a variety of accounting roles at various public companies, and also at Deloitte & Touche LLP serving both public and private audit clients in a wide variety of industries. He is a certified public accountant and a member of the American Institute of Certified Public Accountants.

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