All Posts from March 19, 2012

K+S reports 2nd best operating income

News, News Briefs, Western

Kasel — Germany’s K+S Group reported its second best operating income in history during the year ending Dec. 31, 2011. Operating income was up 36.6 percent, to €975.5 million on revenues of €5.15 billion, compared to 2010’s €714.5 million and €4.63 billion, respectively. Potash/Magnesium income was up 55.4 percent for the year to €739.4 million on sales of €2.1 billion, up from 2010’s €475.9 million and €E1.87 billion, respectively. Nitrogen income was up 60.3 percent to €69.4 million on sales of €1.16 billion, up from 2010’s €43.3 million on sales of €902.4 million. Despite a lull in fourth-quarter fertilizer markets and a weak winter season for salt, fourth-quarter income was up 9.2 percent to €216.9 million on revenues of €1.3 billion, versus the year-ago €198.6 million and €1.28 billion, respectively. Higher prices helped move up Potash/Magnesium income 43.2 percent, to €181.4 million on sales of €542.7 million, up from the year-ago €126.7 million on sales of €470.7 million. The company said it ended the year with potash inventories of approximately 1 million mt, versus the year-ago 800,000 mt. Nitrogen income was down 43.8 percent in the fourth quarter, to €9 million on sales of €279.4 million from the year-ago €16 million on sales of €246.3 million. The company will pay a dividend of €1.30 for 2011, up from 2010’s €1.00. Going forward, K+S expects stable revenues in 2012, with a modest decrease in earnings due to a mild winter. The 2013 outlook is more positive, with expectations of a slight increase in revenues and a moderate increase in operating earnings.

Israeli enviros unhappy with NH3 decision

Ammonia, Israel, News, News Briefs

Haifa — Israeli environmental activists are not happy with the March 1 decision by the country’s Environmental Protection and Industry and Trade Ministries to move the anhydrous ammonia storage facility from Haifa, arguing that it might not happen until 2015 or 2016. They base this on the ministries’ support for a production plant in the Negev that would use natural gas from Israel’s huge offshore reserves. The gas from the Tamar field is not expected to reach the country before mid-2013, while the larger Leviathan field is not expected to begin production before 2016. Ratio Oil Exploration, which has proposed building an ammonia plant in the Negev and is a partner in the Leviathan field, has not even started the approval process for building a plant. In the meantime, environmental groups want the 12,000 mt ammonia storage plant, located within the city limits of Haifa, to be shut down immediately. On March 7 they launched a campaign to raise public awareness just as the matter was being taken up by a municipal court in Haifa. The Haifa Municipality has been trying to get the storage facility, which is owned and operated by Haifa Chemicals, out of the city for several years. A noisy demonstration was held outside the court by members of the Green Course movement and the Coalition for Public Health, who object to the continued delays in dealing with the facility and say that it is a public health hazard and a security risk. The judge agreed to a request by Haifa Chemicals to put off a decision for two more months in order to give the sides more time to assess the risks posed by the ammonia plant.

Investment banks lower estimates for ICL

Israel, News, News Briefs

Tel Aviv — Two American and Israeli investment banks recently lowered their estimates on Israel Chemicals Ltd. (ICL). Citi Capital Markets predicted that earnings at the Israeli fertilizer and specialty chemical maker would total $1.12 per share, 8 percent lower than the investment bank’s previous forecast. Earnings for 2013 were estimated at $1.12, or 4 percent lower than an earlier prediction. Citi based its new estimates on an expected drop in potash prices to $475/mt, and also cited India’s decision to halt fertilizer imports in the first quarter of 2012 to control subsidy prices. The report also noted that volumes in Europe had been affected during the first quarter. Israel’s Clal Finance expects an agreement with China in the near future will be a key indication of what can be expected in the potash market. The investment bank report believes that a price of $470/mt would be an achievement, with anything below $450/mt a negative indication for the direction of the potash market. The situation in India is also a concern for ICL, and uncertainty there is likely to have a negative impact. After several years of rapid revenue growth, Clal is predicting a 4.4 percent decline in revenues for ICL in 2012, though the investment bank expects growth to resume in 2013. The projected drop in revenues is a result of lower potash and fertilizer prices due to increased supply.

China to continue zinc study

China, News, News Briefs

Beijing — The International Zinc Association (IZA) signed an agreement with the Ministry of Agriculture (MOA) to extend an ongoing cooperative project to promote zinc fertilizers in China. IZA said the extension is a result of an extremely successful zinc fertilizer research and demonstration effort that began in 2011, with significant improvements in crop yield and economic return for the farmer. The two-year extension will run through 2013 and will include expanded crop trials, demonstration plots, training, and technology transfer. The total budget is $500,000, and will be funded jointly by both parties. The goal is to improve crop production, human health, and farmers’ incomes in China through the use of zinc fertilizers. The MOA recently released their national "Guidance for Promoting Fertilizer Application," which recommends the increased use of zinc fertilizer in every region of China, highlighting the importance of this project. IZA says 14 percent of China’s 1.3 billion people are at risk for zinc deficiency, which poses such health problems as stunting, impaired development, and weak immune systems. China is one of the largest agricultural countries in the world, and over 50 percent of the nation’s arable soils are zinc deficient. The use of zinc-containing fertilizers not only increases crop yield, but crop nutrition as well, which means significant improvement in dietary nutrition.

EPA probe of fertilizer plant puzzles locals

Ammonia, News, News Briefs, Pacific N.W.

Deer Island, Ore. — Environmental Protection Agency Region 10 officials have confirmed that a criminal investigation is being conducted into ammonia leaks in 2010 at Dyno Nobel’s Deer Island fertilizer plant, but won’t provide any details about how long the investigation has been going on or when it is expected to be completed. “If we were finalizing the investigation we would submit a press release, and apparently it has not reached that stage as yet,” Wally Moon, EPA Region remedial project manager, told Green Markets. He declined to provide any further information. At the same time, many of those on the local scene are wondering what all the fuss is about, although the local Willamette Weekly reported that plant manager Greg Godfrey informed his employees that if they are contacted about the situation they should refer questions to the company’s attorney. The operator at the plant declined to connect Green Markets calls with the manager, and calls to Dyno Nobel’s headquarters in Salt Lake City were not returned. Division Chief Ron Youngberg with the Columbia River Fire and Rescue told Green Markets that over the years there have been several leakages of ammonia, but they have been mostly minor, and that over his 30 years with the department there has never been a situation where citizens have had to evacuate the area. “The releases I have been involved with have been mostly connected to power outages or starting up the plant,” Youngberg reported. “There have been small releases that have been brought under control, and none of them involved the fire department. EPA just made contact with us several weeks ago, and I haven’t heard from them since.” Youngberg added that the plant has been under several different owners, and is a solid operation under Dyno Nobel. The plant manager did tell the press that EPA criminal investigators interviewed workers Jan. 23 about the leak, adding that “because it’s a criminal case, I’m assuming that they think we intentionally violated the law, which isn’t the case.”

BioNitrogen details deal with United Suppliers

News, News Briefs, Urea

Doral, Fla. — BioNitrogen Corp., a developer of a patent-pending technology for converting renewable biomass waste into urea, reports that it has finalized the purchase contract with United Suppliers, as previously announced on Feb. 2, 2012 (GM Feb. 6, p. 12). The company says it will provide United with some 1.25 million st of urea over a 10-year period. In doing so, it said it will use commercially reasonable efforts to construct up to three manufacturing plants in the West Texas region using its proprietary systems; the plants will be devoted to urea and fulfill the company’s supply obligations to United. The urea will be standard granular form and contain at least 46 percent nitrogen content. BioNitrogen estimates that it will have output capacity of approximately 125,000 st of product annually at each plant, and agrees to make available to United annually at least 125,000 st of the product capacity from the West Texas plants. After construction, BioNitrogen said it will endeavor to operate each facility seven days a week, based on a 49-week year. BioNitrogen will bulk load product five days a week for transportation by truck or rail. The term of this agreement will commence on the date on which BioNitrogen completes construction of its first plant and begins accepting purchase orders. The agreement is for ten years, and will automatically renew for one additional year unless it is terminated in writing by either party at least 120 days prior to the end of the term.

TFI recognizes 15 growers for 4R efforts

News, News Briefs

Washington — The Fertilizer Institute (TFI) has chosen 16 American farm operations to receive honorable mention in TFI’s 2012 4R Advocates recognition program. The honorable mention winners represent farmers and fertilizer retailers across the nation dedicated to the 4Rs of nutrient stewardship – utilizing the right nutrient source at the right rate, the right time, and in the right place. “These growers are implementing best management practices that help match nutrient supply with crop requirements to minimize losses from fields,” said TFI President Ford West. “Implementing the 4Rs helps farmers achieve economic, social and environmental benefits.” The 2012 4R Honorable Mention advocates, along with the retailers that nominated them, include Clay Barr, Pomeroy, Wash., nominated by Crop Production Services, Pomeroy, Wash.; Brandon Bonk, Bonk Farms LLC, Dover, Del., nominated by Willard Agri-Service of Greenwood, Greenwood, Del.; Roger Brining, Great Bend, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Steve Conrad, Gore, Okla., nominated by Crop Production Services, Webber Falls, Okla.; Kent and Kevin Dye, Dye Brothers Partnership, nominated by Crop Production Services, Paris, Mo.; Roger Fanshier, Great Bend Cooperative Association, St. John, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Hannebaum Farms, West College, Ind., nominated by Crop Production Services, Brookville, Ind.; Mike Irey, U.S. Sugar Corporation, Clewiston, Fla., nominated by Florikan ESA LLC; John Keenan, St. John, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Mike Kosman, Fort Morgan, Colo., nominated by Crop Production Services, Fort Morgan, Colo.; Jim Livingston, Oblong, Ill., nominated by Wabash Valley Service Company, Oblong, Ill.; Rawson Farms, Farmwell, Mich., nominated by Crop Production Services, Henderson, Mich.; Steve Smith, Bladenboro, N.C., nominated by Crop Production Services, Orum, N.C.; Maurice Smitherman, Shady Grove Dairy, East Bend, N.C., nominated by Crop Production Services, Hickory, N.C.; Tom Terryberry, Terryberry Farms, Imperial, Neb., nominated by Crop Production Services, Imperial, Neb.; and John Woodruff, Los Barros, Calif., nominated by Crop Production Services – Merced, Merced, Calif.

Synagro to develop biosolids recycling center

News, News Briefs

Houston — Synagro Technologies Inc. said March 14 that it has entered into a lease agreement with the Charlotte County Public Works – Solid Waste Division to develop a regional biosolids and green waste Bio-Recycling Center at the County’s Zemel Road landfill near Punta Gorda, Florida. Under a 20-year agreement, Synagro will design, finance, build, and operate a covered windrow composting facility that will recycle approximately 50,000 st of biosolids per year. Synagro said biosolids management options for southwest Florida are limited, as much of the area lies within the sensitive watersheds of the Okeechobee and Caloosahatchee rivers. Beginning in 2013, land application of Class B biosolids will be subject to more stringent nutrient management planning requirements. As a result, many sites that have historically been fertilized with recycled biosolids may no longer be available. This leaves distant land application sites and/or landfills located in excess of 150 miles from many of the region’s wastewater treatment plants as the only options for some municipalities, increasing costs and greenhouse gas emissions associated with transporting biosolids. Synagro’s Bio-Recycling Center will substantially reduce the transportation of biosolids when compared to those landfills and land application sites, lowering fossil fuel consumption and impact on the environment. Additionally, the new facility will enable communities in southwest Florida to meet state-wide recycling goals since the composting plant will receive and recycle green waste as well as biosolids. The Class AA compost produced by the facility can be used by public works agencies in the region for maintaining playing fields, golf courses, and community plantings, and repairing construction sites, potentially reducing budgetary impacts associated with grounds maintenance. Other economic benefits include the creation of new local jobs and a decrease in Charlotte County’s operating costs.

Biosolids scandal figure sentenced

Great Lakes, News, News Briefs

Detroit — John Clark, who got tangled up in this city’s Synagro biosolids contract scandal that surfaced some four years ago, is under court order to surrender himself by mid-June to serve a five-month prison term. The clerk’s office in the U.S. District Court for the Eastern District of Michigan confirmed that the 41-year-old Clark was sentenced on Feb. 16, and according to the judgment commitment order is required to surrender for serving his time at the institution designated by the Bureau of Prisons before 2 p.m. on June 18. According to the local press, federal prosecutors had sought a 16-month sentence for Clark’s part in the scandal, including lying to the FBI about his role in influencing the $1.2 billion contract. Clark, a one-time aide to Councilman Kenneth Cockrel Jr., had long insisted he never accepted any bribes. He said his only crime was lying to federal agents about giving $3,000 back to a company official, which he didn’t do. Cockrel wasn’t implicated. U.S. District Judge Avern Cohn, who gave Clark the five-month sentence, also ordered him to serve five months of home confinement and two years of probation.

B.C. protestors block biosolids trucks

Eastern Canada, News, News Briefs

Prince George, B.C. — Protestors here who are worried about biosolids contaminating water and spreading odors around Salmon Valley have been putting up barricades to keep city dump trucks from transporting their loads to farms for storing and spreading in May or June. In at least one instance RCMPs have had to order demonstrators – without much success – to clear their blockade. “I need to know if it’s going to seep into the waterways, and whether it’s going to be harmful for the environment out here,” declared protestor Andy Angele, despite assurances by city officials and proponents who insist use of treated biosolids as fertilizer on farmlands is safe. But that’s not convincing everyone. “The regulations and their own material say there is potential for water contamination from biosolids,” Angele claimed. So city officials are advising these individuals that their concerns would be addressed at a city meeting at a later date. But protestors said they plan to keep blocking the dump trucks until the city holds an independent review studying the effects of spreading sewage on agricultural land. Suntanu Dalal, communications officer for the Ministry of Environment, told Green Markets the project is in compliance with the City of Prince George’s existing waste management permit, and is being conducted under the conditions set out in the provincial organic matter recycling regulation. “This disposal option has been ongoing at a number of different locations in the Prince George area for more than five years,” added Dalal.

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