FNA FLP chooses Saskatchewan site for proposed ProjectN plant
FNA Fertilizer Limited Partnership (FNA FLP), the business formed in 2012 by Saskatoon-based Farmers of North America (FNA), announced on June 18 that it has selected a location near Belle Plaine, Sask., for its proposed $1.7 billion farmer-owned ProjectN nitrogen fertilizer manufacturing facility.
The announcement was made Wednesday afternoon at Canada’s Farm Progress Show in Regina, Sask. No other details were disclosed about the specific location, but FNA FLP said access to natural gas, available electrical and water supplies, a skilled regional workforce, and logistics infrastructure such as roads and access to both national railways were key factors in the site location.
“This announcement is an important step in project development and demonstrates a distinctly tangible milestone,” said FNA FLP Spokesperson Bob Friesen. “The types of industries that are already located in the Regina-Moose Jaw corridor make it a logical place to locate.”
The date for when construction can begin has not yet been set until the equity for the project has been raised. Should the plant proceed, FNA FLP said the project would have a “significant impact” on the province of Saskatchewan, creating some 1,900 construction jobs and approximately 170 full time positions when the plant is operational. “We have been working with representatives of the provincial government and appreciate those efforts as we move this project forward,” the company said.
Friesen said in May that FNA FLP also hoped to make an announcement soon about a strategic partner in the project, but that partner has not yet been disclosed. "We’re having ongoing meetings with interested third-party investors,” Friesen said. “As soon as we get an MOU (memorandum of understanding) done, we hope to have an announcement.”
Friesen said farmer investment in the proposed plant has been strong, helped by high fertilizer prices this spring. “They clearly see the need for something like this – both for fertilizer supply security as well as the manufacturing margin,” he said. “When you’re talking urea pushing $900 a tonne and the cash manufacturing costs are still well under $150, farmers are realizing how important this is.”