All Posts from October 27, 2023

Louisiana Approves APF, CF Tax Breaks for Projects, Nutrien’s Request for Three-Year Delay at Geismar

Ammonia, Ammonium Sulfate, Featured, Louisiana, Sulfuric Acid

The Louisiana Board of Commerce and Industry on Oct. 25 approved significant tax breaks for American Plant Food (APF) and CF Industries Holdings Inc. for new projects, and a request by Nutrien Ltd. to push back the date of its Geismar expansion by three years.

APF will receive a first-year break of $3.66 million under the Industrial Tax Exemption Program (ITEP). The investment in the 420,000 st/y ammonium sulfate complex was put at $228 million. The project will be sited in Jefferson Parish at Cornerstone Chemical Co.’s 800-acre Cornerstone Energy Park at Waggaman, La. (GM April 7, p. 1; Oct. 28, 2022). APF will source ammonia for the plant from Incitec Pivot Ltd.’s (IPL) Waggaman ammonia plant, which CF is seeking to purchase, and sulfuric acid from Cornerstone.

The Board unanimously approved APF’s request despite opposition from some local residents who had complained that the number of employees for the project had varied over time, according to nola.com, having gone from 100 at the time the project was announced, then down to 13 and now the current 28. However, APF explained the project would be built in phases and the company believed it would eventually move up to 100.

CF received a first-year exemption of $29.4 million on its $2 billion investment in Ascension Parish (GM Aug. 19, 2022). The project is expected to employ 50 and produce 1.7 million t/y of blue ammonia.

The Board also approved Nutrien’s request to move the commencement of operations for its proposed Geismar expansion from March 31, 2027, to March 31, 2030. Nutrien said in August that it was suspending work on the 1.2 million mt/y Geismar clean ammonia project (GM Aug. 4, p. 1).

Nutrien told the Board that it has encountered unanticipated challenges during the project resulting from supply chain delays, higher inflation, interest rates, and anticipated resource availability, as well as market downturns that have forced it to reevaluate the initial timeline.

“We have currently invested more than $100 million in the project and are actively pursuing permits required to commence construction,” Nutrien said. “At the conclusion of our project, using current estimates, we will have spent over $2 billion, created more than 35 new jobs, and expanded our annual payroll and state spend by millions of dollars. The project is still expected to meet our investment amount, new job, and new payroll ITEP compliance requirements.”

Strike Shuts Down St. Lawrence Seaway; Mediation Ordered

Canada, Eastern Canada, Featured, Grains, U.S.

The St. Lawrence Seaway, a major maritime trade route between Montreal and the Great Lakes, shut down early Sunday morning, Oct. 22, after union workers walked off the job. There are an estimated 360 workers on strike, according to the Associated Press.

The strike is expected to affect the movement of grain, fertilizer, and other goods along the Seaway, a trade artery jointly managed by Canada and the US that stretches between Lake Erie and Montreal.

Fertilizer Canada quickly called for St. Lawrence Seaway Management Co. (SLSMC) and Unifor, Canada’s largest union, to promptly come to an agreement to end the strike, saying that the fall is a crucial time in Eastern Canada for the import of fertilizer shipments in preparation for spring.

SLSMC said on Oct. 24 that it is receiving ongoing communication from various groups voicing their concern about delays in getting essential cargoes delivered. “This impasse is extremely unfortunate but our members remain committed to getting a fair agreement,” said Unifor President Lana Payne.

Under what’s known as “pattern bargaining,” Unifor recently won wage increases for its members who work for Ford Motor Co. and General Motors Co. SLSMC, the not-for-profit corporation responsible for Canadian Seaway facilities, which consist of 13 of the 15 locks between Montreal and Lake Erie, said the union is now seeking a similar deal for its workers there. SLSMC said the union is looking for “wage increases inspired by automotive-type negotiations” and has “minimally moved” from initial demands.

The company said there are no ships currently waiting to exit the Seaway “but there are over 100 vessels outside the system, which are impacted by the situation.”

“In these economically and geopolitically critical times, it is important that the Seaway remains a reliable transportation route for the efficient movement of essential cargoes between North America and the remainder of the world,” said SLSM President and CEO Terence Bowles.

SLSMC is seeking a ruling under the Canada Labor Code that would force the union to provide workers to ensure the movement of grain along the route. The ruling has not been issued. However, the Canadian government did order both sides to return to the bargaining table on Oct. 27 with a federal mediator. Both said they would comply.

Business groups, including the Canadian Federation of Independent Business (CFIB), were pleased with the resumption of negotiations. However, if they fail on Oct. 27, CFIB said the federal government should enact back-to-work legislation.

“Ottawa must resolve this situation as quickly as possible to minimize the impact and not wait for the strike to drag on like it happened during the strike at British Columbia ports earlier this year,” said CFIB.

Potential Liner Tear Investigated at Mosaic Phosphogypsum Stack

Featured, Florida, Tampa

The Florida Department of Environmental Protection (DEP) and The Mosaic Co. are keeping a close eye out for a possible liner tear at Mosaic’s New Wales south phosphogypsum stack.

The DEP said that Mosaic notified it on Oct. 20 that a review of site monitoring data and results from a piezometers indicated a change in water pressure within a limited area of the stack. DEP said this could be indicative of a potential liner tear. As of Oct. 26, DEP told Green Markets that the investigation is ongoing and the cause has not been confirmed.

DEP said that inspections and data submitted by Mosaic to date indicate there is no breach of the walls of the gypstack and no discharges to surface water. DEP also said there is no process water storage atop the gypstack system in the vicinity of the area with the reported change in pressure. It said Mosaic ceased stacking and process water storage operations in this area in 2022.

DEP said Mosaic is required to perform an investigation, which includes confirmation of the prior piezometer readings and whether there is a liner tear or other potential cause of the observed changes in gypstack water pressure readings in this area. Mosaic’s investigation is ongoing and DEP inspectors have been onsite to observe and monitor these operations.

In addition, DEP is requiring Mosaic to provide daily reports on any piezometer monitoring data at the site and status reports on the ongoing follow-up investigations. According to DEP, Mosaic planned to begin drilling operations to investigate the anomaly during the week of Oct. 23-28.

DEP said its regulatory investigation into this matter is also underway. DEP said it is reviewing all information to determine if there are any violations or necessary penalties or enforcement actions. This review includes all permit, rule, and reporting requirements.

Environmentalists told the Tampa Bay Times that a liner tear was believed to be the cause of the leaks at the phosphogypsum stack at the long-idled Piney Point plant in 2021 (GM April 2, 2021). At that time, DEP agreed to allow an emergency release of wastewater from the phosphogypsum stack after being warned by the site manager that process water was bypassing the wastewater management system and making its way into Piney Point Creek, which runs into Tampa Bay.

The 2021 leak made national news, and the controlled release of water was believed to have averted a potential breach that could have caused a major disaster (GM April 9, 2021). Thereafter, the state of Florida budgeted funds to permanently close the site (GM April 16, 2021). DEP announced on Sept. 23, 2023, that the first phase of the Piney Point gypstack closure was complete.

Uruguay Developer Courts Energy Firms for Hydrogen/Ammonia Port

Ammonia, Argentina, Brazil, Featured, Green Hydrogen, Hydrogen, South America

Infrastructure developer Corredor Logistico Multimodal (CLM) is in talks with three international energy companies interested in making hydrogen-based fuels and chemicals at a $1.6 billion deepwater port it wants to build on Uruguay’s sparsely populated Atlantic Coast, according to a Bloomberg report.

The project, dubbed La Paloma Hub, would power hydrogen plants and would reportedly be located close to offshore wind-energy blocs that state-run oil company Ancap is preparing to auction as soon as this year, CLM Vice President and shareholder Jorge Carcova Munilla told Bloomberg in an interview.

“We have pre-agreements with European companies for the development of green hydrogen, synthetic fuels and ammonia,” he said.

Uruguay’s treacherous Atlantic Coast is a graveyard of shipwrecks and grandiose port projects that foundered on the shoals of poor planning and wishful thinking. Montevideo-based CLM is betting it can succeed by building a multipurpose port that handles bulk cargo including fuels and farm products from Uruguay, Brazil, and other South American nations. 

The project involves expanding the existing port in the beach town of La Paloma by filling in 220 hectares (543 acres) of ocean and building breakwaters to handle Capsize vessels that draw too much water to dock at Uruguay’s main riverine ports of Montevideo and Nueva Palmira.

CLM, whose shareholders are Argentine and Uruguayan investors, is in separate negotiations with two international companies to finance, build, and possibly operate the port, Carcova Munilla said.

CLM needs the government of Uruguay to approve the project before it prepares feasibility and environmental impact studies, he said. Local regulations also require the government to hold a competitive bidding process to build the port, though CLM would have preferred status as the project sponsor.

Construction could start in 2025 if regulatory approvals are forthcoming and CLM wins the contract bid, Carcova Munilla said. “We think it will take five or six years for the port to be totally operational,” he said.

CLM will seek free-trade-zone and free-port status for La Paloma Hub. Carcova Munilla said a desalinization plant powered by land-based wind, solar farms would supply fresh water to the port. The facility would also have facilities for yachts and naval, fishing, and cruise ships.

Brazil’s Ceará State Signs MOU for Green Ammonia Plant

Brazil, Featured, Green Ammonia, Green Hydrogen

Brazil’s Ceará state government on Oct. 25 reported that it has signed a Memorandum of Understanding (MOU) with São Paulo-based engineering firm GoVerde Energia & Apollo Asset, with the aim to produce solar energy and green ammonia at the port of Pecem.

The $597.6 million project will be implemented in the state’s Pecem Industrial and Port Complex (CIPP), which the government plans to turn into a green hydrogen hub. GoVerde’s New Business Director, Ricardo Junqueira, estimates that the planned facility will be capable of producing 40 mt/d of green ammonia in the first phase of the project, with another 250 mt/d in the second and another 200 mt/d in the third phase.

Another major green project was announced for CIPP in February. Casa dos Ventos, São Paulo, a renewable energy company, and Comerc Eficiência, an energy efficiency company of the Comerc Energia Group, São Paulo, on Feb. 2 announced a partnership with the TransHydrogen Alliance (THA), whose objective is to create new supply chains for the energy transition of European countries (GM Feb. 10, p. 30).

The parties signed an MOU to jointly develop a viable partnership targeting production of the first phase for export to Europe through the Port of Rotterdam in the Netherlands in 2026. Casa and Comerc said they had already signed a pre-contract with CIPP.

The plant is to be built on a 60-hectare site with a capacity of up to 2.4 GW of electrolysis, producing 960 mt/d of hydrogen. When all phases are implemented, green ammonia production of 2.2 million mt/y is expected.

The Mosaic Co. – Management Brief

Management Briefs

The Mosaic Co.’s Board of Directors, as part of an internal reorganization, on Oct. 18 appointed Clint C. Freeland to the position of Executive Vice President and CFO, effective Nov. 1. He is currently Senior Vice President and CFO. In his new position, Freeland’s responsibilities will continue to include Mosaic’s Financial and IT/Cybersecurity Management in addition to Strategic Planning.

Also effective Nov. 1, the Board appointed Walter F. Precourt III to the position of Senior Vice President and Chief Administrative Officer. He is currently Senior Vice President – Strategy and Growth. In his new position, he will have responsibilities for Mosaic’s administrative functions including Human Resources, Public Affairs Procurement, and Enterprise Business Services.

Marion Ag Service Inc. – Management Brief

Management Briefs, U.S.

Marion Ag Service Inc., a family-owned ag retail business in St. Paul, Ore., on Oct. 24 announced several new hires and team member appointments. The company hired John Wayland as Horticulture Business Development Lead to grow the company’s horticultural market, with an initial focus on Marion’s suite of controlled release fertilizers.

Marion also added Susan Bradley and Ashlee Spickler to its horticulture business team to support customer relationships, order logistics, and inventory management.

Marion hired Justin Horlacher as Wholesale Sales Representative to grow the company’s wholesale market segment, with an initial focus on Marion’s PurKote technology. Doug Grott has been added as Director of Sales to execute growth across all of Marion’s market segments, and Erin Galvean has been appointed as the company’s new Chief Financial Officer.

In addition, Jeff Freeman, who currently serves as Marion’s Director of Sales and Marketing, will transition to a new role as Chief Strategy and Marketing Officer, where he will lead the company’s growth and business development strategies and oversee marketing mixes.

Marion said Wayland has decades of experience in the Pacific Northwest nursery and greenhouse markets, while Horlacher brings more than 20 years of experience networking with western US distributors on value added products. Additionally, Grott has over 20 years of experience in ag retail and business development in Oregon’s Willamette Valley. Galvean is a CPA with more than 20 years of experience, the past 15 with A-dec/Austin Industries.

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