BHP Advancing Potash Port Options

The City of Hoquiam, Wash., has scheduled a public hearing on Oct. 24 regarding BHP Group’s proposed potash terminal at the Port of Grays Harbor (GM Nov. 21, 2018). BHP would like to use the redeveloped industrial port to export potash for its proposed Jansen mine in Saskatchewan.

BHP, Melbourne, re-submitted a shorelines permit application on Aug. 6. BHP withdrew a shorelines permit application it submitted late last year after local tribes, numerous agencies, and environmental groups expressed concerns.

The company is considering Vancouver, B.C., as an alternate site for the potash terminal.

The City of Hoquiam has determined that the project will not require an environmental impact statement (EIS). However, BHP is required to implement 26 mitigation measures pertaining to air, water, wildlife, natural resources, environmental health, historic and cultural preservation, and transportation “to avoid, minimize, or compensate for the severity of the environmental impacts resulting from the proposal.”

For more than a year, BHP has been filing environmental impact review papers and modifying its plans after getting input from Hoquiam officials and agencies. It also studied the visual impacts on five properties surrounding the proposed project site. It has requested substantial shoreline development, shoreline conditional use and zoning conditional use permits, and a shoreline variance from Hoquiam.

If the Port of Grays Harbor is selected, there initially would be 4 million mt/y of potash arriving at the terminal, with 4-5 trains and 1-2 vessels making deliveries on a weekly basis. A company spokesman said that would double over time. However, that would not start until four years after Jansen’s completion is approved by BHP’s Board of Directors. While that decision is still to come, work at the Jansen site continues, as the company is 84 percent complete with a $2.7 billion shaft development program (GM July 19, p. 27).

At peak operation, the Hoquiam terminal near Bowerman Airport and the Grays Harbor National Wildlife Refuge would receive up to 10 trains a week, each potentially hauling 20,000 mt of potash, which would either be stored or loaded on up to four ships per week or 220 bulk ocean-going vessels annually for fertilizer export.

To minimize the impact of increased train volume at the port, construction would include an 8,500-foot rail loop that would connect with existing rail facilities, allowing entire trains to be confined within the project’s boundaries; a covered rail car unloading zone; a potash storage structure; upland conveyors; and a marine terminal that would include a conveyor ship loader.

An electrical substation and water, electricity, sewer, and storm water utilities would be included in the Hoquiam project’s infrastructure. There also would be administrative and maintenance buildings, each about 38,000 square feet in size, a parking lot, and a fueling station with double-walled tanks above ground. At full operation, BHP anticipates the terminal would provide up to 50 full-time jobs.

Enclosed train cars loaded with potash would be taken to a covered transfer station. The potash would either be taken directly to awaiting vessels or stored. A BHP study indicated that any attributable emission increases “are sufficiently low enough to protect human health and safety from potential carcinogenic and/or other toxic effects.”

BHP proposes to remove existing over-water structures and pilings near a port terminal, plus more than 1,300 creosote-soaked pilings from the Chehalis River. In-water construction would include a new marine terminal and berth next to another terminal’s existing dock, and grated over-water coverage.

BHP also proposes to install a wetland and aquatic site at the mouth of the Hoquiam River, including the restoration of a 43-acre site where tide lands were previously filled.

Documents are available for review online at www.cityofhoquiam.com, including a 64-page executive summary posted in July that highlights information included in BHP’s permit application. Written comments will be accepted through Oct. 14.

West Virginia Refinery Project Advances; Byproduct Ammonia, Sulfur Expected

Domestic Synthetic Fuels (DS Fuels), Point Pleasant, W.Va., said on Sept. 13 the West Virginia Department of Environmental Protection (DEP) approved a construction permit for its proposed refinery (GM July 19, p. 24), which will use coal and natural gas to produce fuel, along with byproducts such as refrigerant-grade ammonia, sulfur, and solid residue.

DS Fuels said construction on the $1.2 billion complex in Mason County, W.Va., will begin in earnest and come later this fall. It expects to convert the state’s abundant coal and natural gas into a facility that can produce 10,750 barrels of fuel a day (451,500 gallons) – mainly low-sulfur diesel fuel, jet fuel, and gasoline.

The DEP made the decision after a public comment period and public hearings. “I’d like to thank not just the DEP, but the community for coming out and supporting this project,” said Kevin Whited, DS Fuels lead developer. “They live here. They turned out, and a lot of them spoke in favor of the facility.

“Unlike prior coal-to-fuel projects proposed in the Mountain State, this is going to happen,” said Whited back in July. “We have the money, we have the technology, and we have the expertise.”

While DS Fuels had not responded to Green Markets inquiries at press time, Whited was also quoted by The Herald-Mail, Hagerstown, Md., in July as saying that “funding has been secured” for the West Virginia project, and that it would include international investors.

Mason County was selected for the plant because the area has easy barge access and is close to plentiful supplies of coal and natural gas. The company said it has bought 200 acres from the Mason County Economic Development Authority. The company will bring coal from nearby Kanawha County. Some 2,500 st is expected to be used per day, along with 23 million cubic feet of natural gas. Overall, the company expects some 130 jobs will be created, with many more during the construction phase. The company expects the project to be complete in late 2022/early 2023.

The company said the direct coal-to-liquids process to be utilized mixes coal with a catalyst and hydrogen derived from natural gas and subjects the mixture to heat and pressure to produce high-quality fuels. It said a similar fuel plant in China has been operating since 2008, and that the resulting fuels burn cleaner than those refined from petroleum and are just as effective in vehicles.

DEP officials approved the facility as a minor source of emissions, meaning emissions are minimal under federal and state law. DS Fuels said the synthetic fuels derived from coal are cleaner and more ecologically friendly than fuels derived from petroleum.

While West Virginia officials are gung-ho about the project, officials in Washington County, Md., said a separate company in which Whited was involved – Green Kinetics Gateway LLC, a unit of America First Inc. – still owes their county repayment of a $250,000 loan for a waste-to-energy project that was never built. Whited told The Herald-Mail that the $250,000 was not a loan.  At last report, Green Kinetics and the county were in negotiations over the dispute.

Nutrien Partners in Food/Agtech Competition; Input Developers among Finalists

Nutrien Ltd., Saskatoon, and Radicle Growth, San Diego, an acceleration platform for early-stage ag and food technologies, revealed on Sept. 17 that Canadian-based entrepreneurs will compete at the first-ever Nutrien-Radicle Challenge Pitch Day Competition in Saskatoon on Oct. 1-2, 2019. One growth-stage company will receive US$1 million in funding, and an early-stage company will receive US$250,000. More than 100 companies submitted proposals, with four companies selected as growth-stage finalists and four earning a spot in the early-stage competition.

“We are very pleased with the outstanding response that the Nutrien-Radicle Challenge Canada has received from leading entrepreneurs and start-ups developing groundbreaking agricultural technologies all across the country,” said Mark Thompson, Nutrien Executive Vice President and Chief Corporate Development and Strategy Officer. “By providing funding and strategic support to the winners of the Challenge, Nutrien and Radicle are accelerating the pace of innovation in Canada and enabling new agricultural solutions that can help make growers around the world more sustainable, efficient, and profitable. As a global leader in agriculture, Nutrien is excited to bring this unique and innovative Challenge to Canada for the first time.”

Growth-stage applicants were required to have raised a minimum of $3 million in investment capital, while early-stage companies needed to have previously raised a minimum of $100,000 in investment capital or in-kind capital, or have gone through an incubator or accelerator program.

The finalists in the $1 million growth-stage category are:

  • FarmLead, Ottawa, Ont. – A marketplace that enables grain farmers and buyers to prospect, negotiate, and execute grain deals within a trusted network.
  • Renaissance Bioscience, Vancouver, B.C. – A bioengineering company that uses yeast as a platform microbe to create valuable industrial products for commercial partners.
  • P&P Optica, Waterloo, Ont. – A food processing technology provider that leverages hyperspectral imaging to detect foreign objects and assess food quality.
  • Terramera, Vancouver, B.C. – A developer of high-performance natural alternatives to synthetic chemical pesticides and fertilizers that has pioneered a method to target active ingredients to cellular delivery.

The finalists in the US$250,000 early-stage category are:

  • First Pass Technologies, Calgary, Alta. – Uses machine learning to optimize route selection within a farm by integrating into existing, embedded guidance hardware supplied by equipment manufacturers.
  • Livestock Water Recycling, Calgary, Alta. – Segregates and concentrates manure nutrients into two valuable fertilizer products while recycling clean water for reuse.
  • Motorleaf, Montreal, Quebec – Uses artificial intelligence to make precise and automated yield forecasts for commercial hydroponic greenhouses.
  • Precision.ai, Saskatoon, Sask. – Builds artificially intelligent drones that autonomously survey fields in real-time to recognize plant growth and spot-spray weeds with surgically targeted micro-doses.

Companies will be evaluated by a panel of judges, including: Chuck Magro, President and CEO, Nutrien; Mark Thompson, Chief Corporate Development and Strategy Officer, Nutrien; Neal Gutterson, Chief Technology Officer, Corteva; Claudia Roessler, Director of Agriculture, Microsoft; and Kirk Haney, Managing Partner, Radicle Growth.

Jim Newsom Ag Service Inc. – Management Brief

Jim Newsom Ag Service Inc., Glen Allan, Miss., has announced that Paul McRaney will serve as the Director of Sales. He has been in the fertilizer business his entire career, working for Mississippi Chemical, Mississippi Phosphates, and Oxbow Fertilizer.

“Paul brings many years of both knowledge and relationships to our growing business,” said company owner Jim Newsom.

In business since 1979, Jim Newsom specializes in buying distressed fertilizers from barges, vessels, and warehouse storages.

Central Garden & Pet Co. – Management Brief

Central Garden & Pet Co., Walnut Creek, Calif., has named Timothy (Tim) Cofer as CEO, effective Oct. 14, 2019. He will also join the company’s Board of Directors. Cofer succeeds George Roeth, who previously announced plans to retire from the CEO and Board posts at the end of the company’s fiscal year, which ends on Sept. 28, 2019.

The company also announced that Founder and former CEO Bill Brown has been re-appointed Chairman of the Board. He succeeds Brooks M. (Sonny) Pennington III, who will remain on the board.

The company said Cofer brings over 30 years of business leadership experience across general management, corporate strategy, marketing, sales, R&D, and innovation in the consumer products industry. He most recently worked for over 25 years at Mondelēz International, where he held a variety of executive positions, including Executive Vice President and Chief Growth Officer. He also held leadership roles in key Kraft Foods U.S. businesses as President, Oscar Mayer Foods, and President, Kraft Pizza Co. Cofer received his MBA from the University of Minnesota and earned a B.A. in economics and political science from St. Olaf College.

 

The Gavilon Group LLC – Management Brief

The Gavilon Group LLC, Omaha, has announced the hiring of Marcelo Grimaldi as President of Gavilon do Brasil. Based out of Sao Paulo, Grimaldi will oversee Gavilon’s commercial grain operations within Brazil and coordinate with Gavilon’s global offices to develop markets for Brazilian growers to further meet global demand.

He has been in the agricultural industry for more than 30 years, including experience in origination, trading, and production across South America. Grimaldi’s leadership experience includes executive level positions for Continental Grain and ADM, ranging from grain origination to refined oil operations, and oversight of operations in Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay.

“Gavilon is lucky to have such a great mind leading our Brazilian operations,” said Steven Zehr, Gavilon’s President and CEO. “His experience, unmatched knowledge of the Brazilian agricultural markets, and ability to focus on the details make us confident that he can balance the needs of our employees, producers, and customers.”

Belarus Potash Co. – Management Brief

Belarus Potash Co. (BPC) reported that the Head of BPC Trading Co. in Sao Paulo, Sergei Makeichyk, has resigned from the post and from BPC, as of Sept. 16.

For the time being, the company’s potash sales to Brazil will be coordinated by Andrey Chushev, who was recently appointed Deputy Head of BPC’s Sales Department, based in Minsk (GM Aug. 16, p. 23). Prior to his appointment as Deputy Head of Sales, Chushev was Director of BPC’s Malaysia Representative Office in Kuala Lumpur.

 

Minnesota AFREC Seeks Research/Outreach Proposals

The Agricultural Fertilizer Research and Education Council (AFREC) is requesting proposals for Minnesota-focused fertilizer research and outreach projects. Currently, $1 million in grants is available for research, education, and outreach, and for an AFREC research coordinator.

AFREC is a farmer and industry-led program designed to fund research and education on agricultural fertility. AFREC was established by the Minnesota Legislature in 2008, and receives funding through a $0.40 per ton fee on fertilizer sales.

There are approximately 15 ongoing AFREC projects that will be given priority for continued funding this cycle. However, approximately 25-35 percent of the funding will be available for new grants. AFREC’s goal is to have projects selected and grants executed prior to the 2020 crop season.

Copies of the Request for Proposals (RFP) for the funding can be obtained by sending an e-mail request to Luan Johnsrud at the Minnesota Department of Agriculture at luan.johnsrud@state.mn.us.

Questions regarding this RFP may be directed to Larry Gunderson at larry.gunderson@state.mn.us or 651-201-6168. Questions will be accepted until Nov. 22, 2019, at 4 p.m. Completed proposals must be received per RFP guidelines by Dec. 5, 2019, at 3 p.m., Central Time.

Yara, Lantmännen Partner on Fossil-Free Food Chain

Yara International ASA, Oslo, and Swedish agricultural cooperative Lantmännen, Stockholm, on Sept. 13 announced plans to partner and launch a pilot project with the ambition to introduce the world’s first certified fossil-free food chain.

The two companies noted that the transformation towards a fossil-free food chain starts in the field. As a result, the collaboration builds on Yara’s announced plans to pilot the production of mineral fertilizer with renewable energy, with the ambition to reduce the carbon footprint of Lantmännen’s end-products. The fertilizers, which Yara aims to bring to market by 2022, will reduce the total CO2-impact of grain farming by 20 percent.

The partners said the use of renewable energy as a feed stock for mineral fertilizer production will increase production costs and have an impact on food prices. By working closely within the whole food chain, the ambition is to minimize the additional cost for the consumer.

“This partnership is a first step towards achieving the transformation of our food system,” said Svein Tore Holsether, Yara Group President & CEO. “The pilot with Lantmännen will bring together the food chain partners in a joint effort to reduce the carbon footprint of food production. We must look at new business models that span the entire food value chain – from field to fork. A fossil-free food chain is only possible with mineral fertilizers produced with renewable energy.”

“Lantmännen has been working systematically for a long time to develop sustainable solutions in many areas, not least when it comes to cultivation methods and concepts,” said Per Olof Nyman, Lantmännen Group President & CEO. “Nordic farmers are leaders in sustainability, with a low climate impact by international standards even today. With this partnership, which is one of our most important initiatives yet, we take further steps towards a fossil-free food chain and even more sustainable farming,”

Lantmännen, with grain as the heart of its operations, is heavily involved with Northern Europe’s agriculture, machinery, bioenergy, and food products industries. Owned by 25,000 Swedish farmers, it has 10,000 employees, operations in over 20 countries, and an annual turnover of approximately €4.3 billion. Some of its best-known food brands are AXA, Bonjour, Kungsörnen, GoGreen, Gooh, FINN CRISP, Schulstad, and Vaasan.

Founded in 1905, Yara has a worldwide presence with about 17,000 employees and operations in over 60 countries. In 2018, Yara reported revenues of US$12.9 billion.

Kalium Receives Major Project Status, Details Near-Term Production Plans

Junior sulfate of potash producer Kalium Lakes Ltd., Balcatta, Western Australia, said on Sept. 5 the Australian Federal Government has recognized the Beyondie Sulfate of Potash Project’s (BSOPP) strategic significance to Australia by granting it Major Project Status. The designation is the government’s formal recognition of the national strategic significance of a project, through its contribution to economic growth, employment, or contribution to regional Australia. In addition, it provides coordination and facilitation support, as well as a single entry point to a coordinated approvals process.

The Major Projects Facilitation Agency assessed the BSOPP against the required eligibility criteria and made the recommendation to the Minister for Industry, Science, and Technology, the Hon. Karen Andrews MP.

“Receiving Major Project Status from the Australian Federal Government emphasizes the importance of our project to the Australian Agricultural Industry,” said Kalium Lakes Managing Director Brett Hazelden. “Currently, there is no production of Sulfate of Potash in Australia, with all of this nations’ requirements being met by product imported from the northern hemisphere. The development of the Beyondie Sulfate of Potash Project will greatly enhance the ongoing security of potash supply for Australian farmers.”

The eligibility criteria for Major Project Status includes:

  1. The project is of strategic significance to Australia, specifically: the project’s estimated investment exceeds A$50 million, and makes a significant contribution to economic growth, exports, employment, and/or infrastructure development; or the project will have significant net economic benefit for regional Australia, taking account of a region’s investment needs.
  2. The project requires Australian Government approvals administered under Australian Government legislation; or the project has significant Australian Government involvement, including through government programs.
  3. The project has sufficient financial resources and support to complete the Australian Government approvals process and has reasonable commercial viability.

Kalium, which recently completed its last funding component (GM Aug. 30, p. 1), is targeting a 90,000 mt/y SOP stage 1 production facility, ramping up to an 180,000 mt/y SOP full-scale facility, with first output targeted for 2020 (GM March 29, p. 1). A final decision to proceed with the project is expected this quarter.

Kalium has a 10-year offtake deal in place with Germany’s K+S Group for the purchase of 90,000 mt/y of SOP from Beyondie. Kalium expects to produce 25,000-35,000 mt/y of standard SOP (51 percent K2O <1 percent CL) from fourth-quarter 2020, 50,000-60,000 mt/y of granular (51 percent K2O <1 percent CL) from first-quarter 2021, and 10,000-20,000 mt/y soluble SOP (52 percent K2O <.5 percent) in 2022.

Currently, Australia has no SOP production, and K+S supplies over 50 percent of the Australian and New Zealand markets. Kalium put Australian SOP demand at 75,000 mt/y and New Zealand at 20,000 mt/y.

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