Toronto 18 member loses plea, faces sentence

Ottawa-A judge has ruled that Toronto 18 member Shareef Abdelhaleem was not induced or persuaded by a government agent to carry out his role in the foiled anti-Afghanistan war plot to explode massive fertilizer bombs at Canadian landmarks. According to the Ottawa Prosecution Service, Abdelhaleem was to be sentenced Feb. 19 to a possible maximum life in prison, but he has 30 days to decide whether to appeal this decision. His lawyers had argued his conviction should be stayed because he had been lured into a plot by a former friend working as an undercover agent as part of a police sting. The judge, however, found that he was not induced or persuaded by the government agent to commit the crimes for which he was found guilty on Jan. 21, and that he took up the cause with “full knowledge” of what he was involved in. “The evidence contains many instances where he advanced the bomb plot,” the judge concluded. Abdelhaleem, the seventh person to be arrested in the plot, has been in custody since his arrest on June 2, 2006. In another Toronto 18 case, the Public Prosecution Service of Canada on Feb. 16 filed notice of appeal of the sentencing of Saad Gaya, 22, who was sentenced to 12 years in January, but would only have to serve 4½ years after taking into account pretrial custody. The Crown had been seeking 17 to 18 years.

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 65.98 64.52 38.48
CF Industries CF 102.01 100.12 52.68
Intrepid Potash IPI 28.03 27.06 22.33
Mosaic MOS 60.56 58.42 40.88
PotashCorp POT 115.20 111.12 81.73
Terra Industries TRA 41.30 34.04 18.94
Terra Nitrogen TNH 105.70 104.05 115.51
Distribution/Retail
Andersons Inc. ANDE 31.35 30.96 13.72
Deere & Co. DE 57.26 52.32 32.23
Scotts SMG 38.75 37.84 31.07

Market Watch

AMMONIA

U.S. Gulf/Tampa: Price ideas for March continue to be robust, though there is some speculation that continued delays in getting the new UAN plant to full production in Trinidad might mean another ammonia cargo available for Tampa. If that is the case, sources say this would add downward pressure to the coming round of price negotiations.

U.S. Imports: Anhydrous ammonia imports were off 14 percent in December, according to the U.S. Department of Commerce (DOC), to 423,840 st from the year-ago 492,573 st. July-December imports were also off 14 percent, to 3.14 million st from 3.65 million st.

Eastern Cornbelt: The ammonia market was quoted at $420-$450/st FOB, depending on location and time of delivery. Those numbers were up from last report, with the low end quoted for prompt tons on a spot basis, while the upper number reflected some spring prepay offers still on the table.

Western Cornbelt: Anhydrous ammonia was quoted at $390-$420/st FOB regional terminals, with the low for spot tons and the upper end for spring prepay. That range reflected an increase from last report. Sources pegged the market for prompt tons out of production points in Kansas and Oklahoma at $325-$340/st FOB last week.

Northern Plains: Anhydrous ammonia was pegged at $400-$410/st FOB regional terminals, with the upper end reflecting the Feb. 5 reference price from Agrium FOB Mankato, Minn. Delivered ammonia in North Dakota was quoted in a broad range at $455-$485/st, depending on supplier and time of delivery. Dakota Gasification was offering spot tons at $470/st DEL in the state, and said production at its Beulah, N.D., plant will restart “as soon as the snow melts.”

Great Lakes: Sources quoted the anhydrous ammonia market at $400-$440/st FOB in the region, with the low confirmed by Michigan sources FOB Courtright, Ont., for prompt tons. The upper end was reported for spring prepay offers.

Black Sea: Regular global demand is keeping pressure on the market, but not enough to move the price past the break-even production cost for Ukrainian producers.

Price ideas for material range from $300/mt FOB to $340/mt FOB. The problem is getting buyers and sellers to agree on what the price really is. Producers, naturally, cling to the $340/mt FOB number. Buyers in other parts of the world, however, say the price is much lower.

Working from the prices talked about in the Middle East, observers say the market should be $330-$345/mt FOB. Finding an actual bit of business at that level, however, is another thing.

The last bit of business that people talked about was in late January. The price at that time was pegged in the low $300s/mt FOB.

Ukrainian producers remain shut down, because the price has not been stable at levels that fully cover the cost of Russian natural gas and other costs to production. Sources have pegged the break-even point at $320/mt FOB.

For now, the best bet on pricing is $310-$340/mt FOB.

Middle East: Supplies remain tight in the area. Sources from Asia report that as soon as the producers assemble a cargo’s worth of material, it is loaded and shipped out. Demand comes from Southeast Asia, as well as Europe.

Reports circulated of a couple of deals to Yara for a cargo from Iran at $355/mt FOB and $367/mt FOB.

Transammonia – not the American office – did another deal for Iranian tons at $370/mt FOB.

And Mitsubishi bought Iranian tons from Mitsui for South Korea. The delivered price was $435/mt CFR. The estimated netback on that deal is $370-$375/mt FOB.

Sources have reported that Iranian material is often priced lower than the going regional market price. One reason for the discount is that most ammonia is priced on a delivered basis. The extra steaming time to Iran at the top of the Arab Gulf requires the FOB price to be just a bit lower than material from one of the Arab producers.

Another reason for an Iranian discount is logistics. Complaints of material not being at the port on time to ship or problems with the loading equipment are frequently heard.

In recent months, however, Iran has been a steady supplier for companies able to do business with them.

The flurry of activity this week seems to show, said one source, that Iran can be a large-scale supplier of ammonia. This source added, however, that he is still waiting to see if it can be a steady, large-scale supplier.

The Iranian business, without the convention discount included, pushes up the regional price to $355-$370/mt FOB. If the discount is applied, the price moves up to $345-$360/mt FOB.

Lastly, Fertil has extra tons available because of reduced granular urea output. Sources say the reduction in urea output is most likely a result of start-up problems for the new facility rather than a deliberate act to reduce urea production.

India: Gujarat Narmada Valley Fertilizers Co. (GNFC) halted operations at its ammonia plant following an explosion and fire in the waste heat boiler in the ammonia synthesis unit Feb. 11. The impact on downstream products was unclear.

UREA

U.S. Gulf: New granular business last week was put in the $315-$318/st FOB range. Sources said the range reflected wet weather and a lack of movement to the field. Sellers remain optimistic that once actual field movement and stocking begins, demand for barges will pick up – as well as prices.

One source observed that barge pricing has remained within a steady range – $315-$325/st FOB – for several weeks now. At this point, few are predicting any big changes in price volatility. However, others do note that if 90 million acres of corn are planted, the country could fall short of urea. Even though January-February has seen fresh imports, July-December 2009 imports are off. In addition, the U.S. market remains below global pricing. Sources say that even if that situation changes, it is getting too late to import additional product.

Prills are now said to be in line with granular, if not higher.

U.S. Imports: December urea imports were up 39 percent in December, to 429,699 st from the year-ago 309,694 st, according to the DOC. However, July-December urea imports are still down 20 percent, to 2.17 million st from 2.71 million st.

Eastern Cornbelt: Granular urea pricing was down slightly from last report, to $350-$365/st FOB in the region. The low reflected new postings for prompt tons out of Illinois terminals from CF.

Western Cornbelt: Granular urea was tagged at $350-$360/st FOB in the region.

Northern Plains: The granular urea market was tagged at $360-$365/st FOB the Twin Cities for prompt or prepay tons. Delivered urea in North Dakota was quoted at $400-$407/st, with posted levels at the $400/st mark FOB North Dakota terminals.

Great Lakes: Granular urea was pegged at $360-$380/st FOB for prompt tons, with the low in Wisconsin and the upper end in Michigan to the dealer. One Wisconsin source quoted delivered urea in the $370-$390/st range, depending on location.

Northeast: Granular urea was quoted at $365-$375/st FOB in the region.

Black Sea: The talk of the area is all about how low the market will go.

Earlier this month, sources reported the price had moved comfortably above $310/mt FOB. As last week started, however, the price slipped below $300/mt FOB and then below $290/mt FOB.

At first, sources said there is no market that can sustain a price out of Yuzhnyy above $300/mt FOB. By the end of the week, sources were saying there is no market for anything in the upper $280s/mt FOB.

Producers are now offering at $290-$295/mt FOB, while bids are coming in below $285/mt FOB.

Sensing a softening market, sources report Turkish buyers are pushing harder for lower prices. Recent deals reportedly have earned netbacks under $300/mt FOB.

One Asian trader added that the belief that India will not be coming in until March is adding more grease to the skips in the Yuzhnyy price.

Even the Latin American buyers are only dangling their toes in the market. No large-scale purchases are reported. The buyers seem to be taking only what they need, when they need it.

As the week closed, sources pegged the market at $285-$295/mt FOB, with odds favoring a further drop.

Middle East: Producers in the area were confident and unwilling to offer discounts as last week started.

By the end of the week, however, the idea of an ever-stronger market seemed dashed.

MOPCO/Egypt settled a granular selling tender at $333/mt FOB. The producer had been hoping for bids at $340/mt FOB and up.

The deal now lowers the upper range of the granular market. The range now sits at $300-330/mt FOB.

Prills remain stable.

At the same time, there are reports that Fertil is having some hiccups with its granular production. One trader dismissed the idea that the company is deliberately cutting back on production to regulate supply. He said it is unlikely a company would not try to run its newest plant at full capacity. Any limited output, he added, is most likely teething pains.

Overall, the producers report they are in good shape because of long-term contracts to the United States and Australia. Smaller contracted tons to Asian locations fill out the order books.

Sources have been concerned, however, that come March the buying from these locations will end.

Latin American buyers have been taking only the tons they need in a hand-to-mouth style.

An immediate concern, say sources, is a growing consensus that India could hold out until mid- or late-March to begin buying. Some argue the tender can be pushed back as late as early April.

Indonesia: Just as traders were figuring the export market would go quiet, PIM calls a tender to sell 20,000 mt of prilled urea.

The company issued the tender late Friday afternoon. Bids are due later this week.

Area traders are expecting to see prices softer than the current $316/mt FOB price.

NITROGEN SOLUTIONS

U.S. Gulf: Many players were bullish on UAN, saying a weak Fall ammonia application season would lead to increased use of UAN in the spring, especially if it is a wet spring. Nearby barges were reported to be trading within the $208-$215/st FOB ($6.50-$6.72/unit) range, with forward into late March/April called $218-$225/st ($6.81-$7.03/unit) FOB.

U.S. Imports: December UAN imports were up 208 percent, to 308,330 st from the year-ago 99,983 st. However, for July-December, UAN imports are still off 33 percent, to 653,761 st from the year-ago 973,701 st.

Eastern Cornbelt: UAN-32 was pegged in the $245-$260/st ($7.66-$8.13/unit) range FOB regional terminals, with the low reported out of spot river locations in Illinois and the upper end reflecting prepay offers. One Ohio source tagged the common dealer market in the $7.75-$7.85/unit FOB range last week, with the low out of river terminals. Postings from one regional supplier ranged from $7.85-$8.15/unit FOB for prompt tons in the region last week.

Western Cornbelt: The UAN-32 market was quoted at $240-$255/st ($7.50-$7.97/unit) FOB regional terminals, with the upper end reported in Iowa and the low in Missouri on a spot basis.

Northern Plains: The UAN market was tagged at $7.95-$8.20/unit FOB terminals in the region. Delivered UAN-28 was quoted at $230-$245/st ($8.21-$8.75/unit) in North Dakota, with the low for prompt tons and the upper end for spring prepay. UAN postings from CF for the Feb. 12-19 order and shipping period included $8.20/unit FOB Pine Bend, Minn.

Great Lakes: UAN was quoted in a broad range at $7.75-$8.21/unit FOB regional terminals, depending on location, with the low confirmed by sources in southern Wisconsin. Out of Michigan terminals, UAN-28 was pegged at $220-$230/st ($7.86-$8.21/unit) FOB to the dealer.

Northeast: The UAN-30 market was pegged at $210-$215/st ($7.00-$7.17/unit) FOB port terminals, while UAN-32 remained at $7.50-$7.75/unit FOB terminals in upstate New York. The vessel market was tagged in the $240-$250/mt CFR range, with replacement tons indicated in the $250-$260/mt CFR range at mid-month.

Western U.S.: Effective Feb. 17, Agrium’s UAN-32 postings moved up $10/st to $260/st ($8.13/unit) rail-DEL in Washington, northern Idaho, and Oregon excluding Malheur County; $265/st ($8.28/unit) rail-DEL and $270/st ($8.44/unit) truck-DEL in southern Idaho, Nevada, Utah, and Oregon’s Malheur County; and $280/st ($8.75/unit) DEL in Montana and northern Wyoming. In California, Agrium’s postings firmed to $248/st ($7.75/unit) FOB Sacramento, $270/st ($8.44/unit) truck-DEL in central California, and $275/st ($8.59/unit) truck-DEL in northern California.

AMMONIUM NITRATE

U.S. Gulf: The market appears to be firm at the $250/st FOB mark.

U.S. Imports: Imports were off 52 percent in December, to 22,075 st from the year-ago 45,732 st, according to the DOC. During July-December they were off 40 percent, to 195,895 st from 328,956 st.

Western Cornbelt: The ammonium nitrate market had reportedly firmed to $285-$290/st FOB, with the upper end again quoted in Iowa. Sources pegged the Catoosa, Okla., market at $275/st FOB at mid-month, also up from last report.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate pricing
continued to climb, with sources quoting the dealer market
last week at $230-$235/st FOB or DEL in the region. Sources
continued to describe supplies as tight.

Western Cornbelt: Granular ammonium sulfate was tagged at $225-$235/st FOB in the region, depending on location. An Iowa supplier quoted the market at a firm $230/st FOB to the dealer.

Northern Plains: Granular ammonium sulfate remained at $235-$245/st DEL in the region, and tons were described as tight.

Great Lakes: Granular ammonium sulfate pricing was up significantly from last report. Sources pegged the dealer market at $230-$236/st FOB, with the upper end reported in Michigan. The low end of the range was also quoted for rail-delivered tons in Wisconsin. Honeywell’s Feb. 1 postings included granular ammonium sulfate at $230/st rail-DEL and FOB warehouses in Wisconsin.

Northeast: Granular ammonium sulfate had reportedly firmed to $195-$200/st FOB and $225-$230/st DEL in the region.

U.S. Imports: Imports were up 80 percent in December, to 45,284 st from the year-ago 25,216 st, according to the DOC. July-December imports were up only 3 percent, to 167,562 st from 162,100 st.

PHOSPHATES

Central Florida: The Central Florida DAP market was losing ground to the export market, which was rising rapidly last week. Horrible weather in the East and Midwest was a major contributor to the slowdown in business.

Although producers saw little increase in business last week, traders were active – at least more so than they have been for the past couple of months. Most of the prompt railcars of DAP sold were done by traders.

Several sources said none of the material sold last week was going directly onto the ground, but into storage systems in preparation for the spring season. “Dealers are waiting for the farmers to start coming in before they order more,” said one.

The drawback to waiting to buy is the strong probability that prices will go higher. Despite the domestic slowdown, the export market was taking a huge chunk out of available inventories. Production levels may be difficult to maintain, considering the shortage of sulfur. Phosphate producers have been struggling to find sulfur, and considering the depressed economy, that situation was likely to continue well into and probably throughout the quarter.

The Central Florida DAP price range last week increased slightly, from $390-$400/st FOB the previous week to $395-$400/st FOB. Small buyers will likely pay a higher price this week. Mosaic increased its posted price from $395/st FOB to $400/st FOB, while CF’s price remained at $395/st FOB. PCS Sales was charging market-based prices. Prices from Agrifos were $430/st FOB for DAP and $440/st FOB for MAP, but railcars were about $5/st FOB less, if available.

U.S. Gulf: Last week Transammonia purchased 15,000 mt from CF, which it plans to use for the export market. Shortly after, CF began buying NOLA DAP barges to replace the material it sold to Trammo. The result was a run-up in the market.

The deal worked well for CF, which will avoid having to pay to ship DAP across the Gulf to the river markets, even though it had to pay a premium to get the replacement product. CF was believed to have been seeking as many as a dozen NOLA DAP barges, and had purchased at least 10 as of late last week, according to sources.

Sales picked up as a result of the CF/Trammo deal. Early in the week, transactions were done as low as $412/st FOB, but they began rising shortly after and continued that trend late into the week, when asking prices were close to $425/st FOB – although no business was done at that level.

The bitter weather that swept across much of the country during the past month has slowed business from terminals and warehouses throughout the Midwest.

In addition to the CF deal with Trammo, sources said many of the barges traded recently have been for export, which was bringing a premium of around $50/st FOB over the NOLA DAP barge market.

Corn prices were holding up well last week, and farmers will be using more fertilizer this season than during the past two years because soil tests have been consistently showing low levels of nutrients. Coupled with a strong corn market, farmers cannot afford not to buy. However, some fear that if the price of phosphate goes up too high, farmers will attempt to use less than they otherwise would have.

TFI’s January report showed inventories increased and more phosphate was sold in the domestic market. However, production was beginning to show signs of strain as a result of a shortage of sulfur. Producers were said to be scavenging every possible source for additional supplies in order to keep processing plants running.

Based on transactions last week, the NOLA DAP barge price range was lower on the bottom and higher at the top when compared to the previous week. The previous week’s range was $415-$416/st FOB, but changed to $412/$421/st FOB. Considering most of the activity last week was the result of the CF/Trammo deal, prices will likely stabilize somewhat this week.

Eastern Cornbelt: The DAP market was pegged at $440-$450/st FOB regional warehouses, also up slightly from last report. MAP was $10-$15/st higher than DAP. The 10-34-0 market was tagged at $355-$365/st FOB in the region.

Western Cornbelt: DAP was $440-$450/st FOB regional warehouses, up slightly from last report. MAP was $10-$15/st higher than DAP, and 10-34-0 was unchanged at $345-$355/st FOB in the region.

Northern Plains: Minnesota sources quoted the DAP market at $450-$460/st FOB last week, with MAP $10-$15/st higher. A North Dakota dealer pegged rail-delivered MAP at $490-$510/st, with no new business reported to test those levels.

10-34-0 was reported in a broad range at $315-$345/st FOB for prompt tons, with the low also reported in North Dakota for delivered tons on a spot basis. Agrium’s phosphoric acid postings firmed on Feb. 1 to $725/st rail-DEL for both super phosphoric acid (SPA) and merchant grade acid (MGA) in Minnesota and the Dakotas.

Great Lakes: The DAP market was quoted at $450-$465/st FOB, with the upper end FOB Webberville, Mich., to the dealer. A Wisconsin source quoted delivered DAP at $460/st to his location last week. MAP was $10-$15/st higher than DAP. The 10-34-0 market was tagged at $360-$365/st FOB, with the low in Wisconsin and the upper end in Michigan.

Northeast: MAP remained at $465-$490/st FOB in the region, with the low at Philadelphia and the higher numbers out of warehouse locations in New York. DAP was $10-$15/st less than MAP, where available, and 10-34-0 was tagged at $345-$355/st FOB in the region.

U.S.Export: The talk last week was about the deal Transammonia did with CF, which had as much or more of an effect on domestic sales as it did in the export market.

The 15,000 mt Trammo bought from CF was the only export-related sale of U.S. phosphate found last week, and it was unclear exactly where the product was destined to be delivered. PhosChem made no new sales last week.

However, India was believed to be negotiating with the Russians for the purchase of a large quantity of DAP – possibly as much as 1 million mt – but no details or confirmations could be found.

Other promising markets included Pakistan, Central America, and Argentina, which was the leading buyer of MAP in January.

TFI’s January export report showed DAP exports declined in January by 35.3 percent, compared to a year earlier. TFI said exports last month totaled 136,878 mt. Mexico was the biggest customer at 38,512 mt, followed by Japan at 21,425 mt and China with 20,981 mt, which was most likely an overrun from the previous year.

TFI said MAP exports from the U.S. were up 119.2 percent from 2009, at 100,560 mt. Argentina led the way with imports of 34,943 mt, while Canada was second at 27,019 mt and Brazil third with 13,227 mt.

The export DAP price range last week increased from $490-$495/mt FOB to $505-$510/mt FOB. Considering the market has shown no signs of weakness, the price should continue to rise in the short term, say sources.

POTASH

Eastern Cornbelt: Sources quoted the potash market at $395-$405/st FOB from secondary suppliers. Producer postings were higher, at $420/st FOB and $430/st DEL in the region.

Western Cornbelt: Potash continued to be quoted in the $395-$417/st FOB range, depending on grade and location, with the upper end reflecting white granular potash from some secondary suppliers. An Iowa source pegged the red granular potash market firmly at the $405/st FOB level last week, below producer postings of $420/st FOB and $430/st DEL.

Northern Plains: Potash was quoted at $367-$380/st FOB Saskatchewan mines, depending on grade and supplier. Agrium’s Feb. 2 potash postings FOB Vade, Saskatchewan, included $367/st for standard and $372/st for premium grade. Agrium’s 60 percent red premium potash postings firmed on Feb. 2 to $420/st FOB Shakopee, Minn., and Grand Forks and Colfax, N.D., and $430/st rail-DEL in Minnesota, Wisconsin, and the Dakotas.

Great Lakes: Potash pricing had reportedly firmed to $420-$427/st FOB, depending on grade and location, with the upper end quoted by Michigan sources for white granular potash on a spot basis. Delivered potash was pegged at the $430/st level in Wisconsin.

Agrium’s 60 percent red premium potash postings firmed on Feb. 2 to $420/st FOB Saginaw, Mich., and $430/st railDEL in Michigan and Wisconsin.

Northeast: The potash market was quoted at $400-$420/st FOB, with the low reported by Pennsylvania sources from secondary suppliers on a spot basis. Delivered potash was pegged at $420-$440/st, depending on grade and location, with the upper end reflecting reference levels from producers.

U.S.Imports: December imports were off only 3 percent, to 692,616 st from the year-ago 711,286 st. However, for the July-December period they were off 40 percent, to 2.91 million st from 4.83 million st.

India: Canpotex has concluded a new second-quarter supply contract to India covering shipments through June 2010 at a contract price of US$370.00/mt CFR. This new contract, totaling approximately 600,000 mt, is with a consortium of buyers that includes Coromandel International Ltd. and Tata Chemicals Ltd.

SULFUR

Tampa: A number of factors have been responsible for sulfur shortages in the Gulf Coast region, as well as the rest of the country and the world – the economy, which was keeping driving down, refinery turnarounds, and the weather.

The weather has been especially brutal this year. The frequent cold fronts that have frozen most of the country have also been a problem in the Gulf of Mexico. A Martin sulfur vessel, the Margaret Sue, last week hit waves of 16 feet in the Gulf and sustained enough damage to force it to head for port and a shipyard for repairs. The vessel was expected to return to service in about a week, but the interruption in delivery of molten sulfur to Tampa just added to the existing shortage problem.

Sources said that although a large number of refineries along the Gulf Coast were still undergoing turnarounds, most should be returning to service relatively soon. However, most were still planning to use sweet crude, which will provide less sulfur than the sour. Even when those facilities are back in service, sulfur will remain tight.

Phosphate producers were not the only ones being affected by the shortage. Sources said some industrial customers were not getting the supplies they need and were planning to shut down in some instances. Phosphate companies were seeking other sources of supply, and Mosaic was said to be re-melting blocked sulfur in Canada that it purchased earlier. In addition, the sulfur it had blocked at Galveston was believed to have been exhausted. Also, Mosaic was said to have recently purchased about 10,000 mt of sulfur from the Caribbean to help bolster its supplies.

Although negotiations for new second quarter prices were still about two months away, it appeared likely prices would rise – and probably by quite a bit.

CF told analysts last week that its production rates have not been impacted by sulfur availability. However, it did say that it had a transportation hiccup over the weekend (Feb. 13-14) that it believes has been resolved. The company said its sulfur supply has been first rate.

U.S.Imports: Imports were up 16 percent in December, to 90,362 st from the year-ago 77,999 st. July-December imports were off 47 percent, to 614,640 st from 1.15 million st.

Vancouver: Spot prices for sulfur from Vancouver were heading up last week. A source said a price of $170/mt FOB was being sought for a spot deal, although it had not been concluded.

Management Briefs

ArrMaz Custom Chemicals has named Hank Waters as CEO. He joined ArrMaz in early 2009 as president and will replace Glen Varnadoe, who is retiring after more than 25 years of service at ArrMaz and its predecessor companies.

Waters joined ArrMaz from Ashland Inc., where he worked for 17 years and held several positions, including corporate vice president, president of the Ashland Distribution division, president of the Ashland Performance Materials division, and president of the Ashland Water Technologies division. He has also worked for GE Plastics and Air Products. Waters graduated from The General Manager Program at the Harvard Business School, and has a B.S. in Chemical Engineering from Ohio University.

“We are very pleased with Hank’s contribution to the success at ArrMaz,” said Paul Chellgren, Chairman of ArrMaz and an operating partner of Snow Phipps, New York, the private equity firm that purchased the company in 2008.

ArrMaz, Mulberry, Fla., produces a wide variety of process chemicals that are generally custom-formulated to meet customer specifications. It is a leading producer of functional additives and process aids to the fertilizer and asphalt industries, and is a significant provider of chemical products to related minerals mining industries.

Biochar plant turns waste into soil conditioners

Halfway, Ore.-Biochar Products, a small start-up company focusing on pyrolysis to turn forest wastes into soil conditioners and fuels, is in the early stages of developing a 10-dry-ton-per-day prototype plant near here with hopes of putting the concept to use in small communities located near forested landscapes. Eric Twombly, the company’s president, is a former U.S. Forest Service employee who envisions a market for owners of private timberland and federal land managers who might otherwise burn or dispose of waste from forest thinning projects. “One of these plants in my estimation might pencil out to 10 or 15 jobs, and we could easily have three or four in this area around Halfway, Baker City, Trout Creek, and other places in Baker and Union counties,” Twombly told the local press during a recent tour of the plant for timber owners and others from northeastern Oregon and southwestern Idaho. Biochar is simply charcoal that is created using a pyrolysis process, heating biomass in a low oxygen environment. Biochar is spread on agricultural fields and incorporated into the top layer of soil to increase crop yields by preventing fertilizer runoff and leeching. It also aids in moisture retention. Twombly started investigating alternatives to burning waste from forest health projects in slash piles and found a prototype machine that can turn wood and agricultural wastes such as chicken manure into fertilizer and fuel. He resigned from the Forest Service to set up the prototype plant under an agency grant.

BASF and DuPont settle patent infringement case

Florham Park, N.J., and Wilmington, Del.-BASF Plant Science and DuPont recently announced that they have reached an agreement on a patent infringement dispute. In June 2009, BASF and DuPont filed suit against each other in U.S. District Court for the District of Delaware regarding intellectual property rights relating to biotechnology traits, including traits that provide tolerance to ALS herbicides. The parties have reached an agreement to cross-license patents and dismiss their claims and counterclaims against each other in both of the cases pending in Delaware. Terms of the agreement were not disclosed.

Nine companies join to supply California DEF

Stockton, Calif.-Mansfield Oil Co. has nine California companies – Toro Petroleum, Coast Oil Company, Van De Pol Enterprises, Allied Washoe, Cross Petroleum, Dewitt Petroleum, Beck Oil, J.B. Dewar, and SoCo Group – geared up to supply every county in the state with Air1 diesel exhaust fluid produced by Yara. The initial emphasis, according to the two companies, is on providing education, equipment programs, and DEF supply options, ranging from jugs to bulk, that their customers need to meet the EPA standards. “It’s easy for DEF suppliers to say they are everywhere, but what we see customers needing more than anything at this point is education. So while we’re pleased to partner with these leading California companies to ensure efficient local distribution, we are most excited about their commitment to having so many educated professionals ready to help fleets determine best how to store, handle, dispense and use DEF,” stated Douglas Haugh, executive vice president at Mansfield. “This is a brand new product that is mandated, and there is nothing worse than having to buy something you don’t understand. With the expert support available from these companies across the state, customers now have a local resource to help them get comfortable with the adoption of DEF.” Mansfield and Yara conducted training sessions at Yara’s new $21 million terminal facility in Stockton and in Ontario, Calif., for 34 sales representatives now certified as Air1 specialists under the DeliveryOne program, which is Mansfield’s network distribution system for Yara’s Air1 in the U.S. “These nine distributors are the perfect partners to bring diesel exhaust fluid to California,” added Chad Dombroski, Air1 Director of North American Operations, Yara. “Their understanding of DEF, a history of outstanding client service, the strength of their teams, and the depth of their commitment to educating customers about this year’s Clean Air Act requirements make them the go-to distributors for DEF in California.”

John Deere, LebanonTurf expand distribution

Lebanon, Penn.-John Deere Golf and LebanonTurf on Feb. 17 announced an agreement to expand distribution of LebanonTurf’s line of methylene urea products under the Country Club brand. “Country Club has been a preferred choice among superintendents for decades based on its performance and results,” said Gregg Breningmeyer, group director of sales and marketing for John Deere Golf. “We’re pleased to offer these proven agronomic solutions to our customers.” Country Club is LebanonTurf’s premier homogeneous methylene urea fertilizer line that combines traditional high-WIN products with the company’s patented Composite Technology granulation process. The full line of Country Club fertilizer products – available in both greens and fairway grades – will be available on John Deere Golf Stores on Wheels, from John Deere Golf sales representatives, and in John Deere Landscapes stores.

Synagro tries again to gain Detroit contract

Detroit-Synagro Technology officials weren’t available to comment on reports that the Houston-based company has tried and failed to obtain another contract with Detroit, where officials are still questioning Synagro’s “integrity and judgment” over the contract cancelled early last year in the midst of a bribery scandal. The Detroit press reported that Synagro attempted to prequalify last fall to bid on another sludge disposal contract, but was turned down by Pamela Turner, the Detroit Water and Sewerage Department director. Turner sent a letter to Synagro referring to city ordinances that require contractors to demonstrate a “satisfactory record of integrity, judgment, and performance.” In addition, Councilman Kenneth Cockrel, Jr., who was serving as interim mayor at the time the contract was terminated, was quoted as saying that “there still remains a taint over the company, considering all that has transpired. I don’t understand why they would want to entertain coming back in view of the scandal.” Neither Turner nor Cockrel were available to provide more details about the contract Synagro was seeking. But the bribery scandal has continued to unfold in the courts since last summer, when a Synagro vice president who is no longer with the company admitted to bribing public officials in exchange for approval of the $1.2 billion contract. Just last week, on Feb. 17, a mistrial was declared in the public corruption trial of a political consultant allegedly involved in the bribery. The mistrial was apparently declared because one of the jurors refused to participate in the deliberations and the jury could not reach a verdict on whether Sam Riddle was guilty of obtaining cash for his boss, Councilwoman Monica Conyers. Conyers already has pleaded guilty and resigned her council seat. Before and during the Riddle proceedings Synagro maintained that no one in the company knew anything about the bribes other than James Rosendall, Jr., the former Synagro vice president, who cooperated with the FBI and later pleaded guilty to bribery conspiracy. “We have cooperated fully with federal authorities,” Joseph Page, Synagro vice president and general counsel, told Green Markets. “No other employees are a target of the investigation.” Still, evidence presented at the trial of Riddle made a few observers wonder. According to press reports, in wiretapped calls recorded before he began working with the FBI, Rosendall talks “more than once about higher-ups at Synagro signing off on payments.”

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