All Posts from May 27, 2022

Koch Plants Win EPA’s Energy Star®

News, News Briefs, Nitrogen, Southern Plains, Western Cornbelt

Koch Fertilizer LLC, Wichita, recently reported that three nitrogen plants – Beatrice, Neb.; Enid, Okla.; and Fort Dodge, Iowa – have earned 2021 Energy Star® certification from the U.S. EPA for superior energy performance.

The certification recognizes plants performing in the top 25% of similar nitrogen fertilizer manufacturing facilities nationwide for energy efficiency and meeting strict energy efficiency performance levels set by EPA. This is Beatrice’s third, Enid’s second, and Fort Dodge’s first year to earn certification.

In 2017 and 2021, Koch Fertilizer, as a subsidiary of Koch Industries Inc., earned the Energy Star® Partner of the Year Award in recognition of its superior energy management practices.

K+S Plans to Double Saskatchewan Production

Featured, News, Potash Muriate, Saskatchewan

K+S Potash Canada (KSPC), Bethune, Sask., on May 25 announced a long-term plan to boost potash production at its Bethune facility in Saskatchewan to 4 million mt/y, effectively doubling current output. K+S recently said it is increasing capex in order to ramp up 50,000-150,000 mt/y of additional capacity at Bethune in the near term (GM May 13, p. 1).

KSPC said the final production capacity is intended to grow continuously over the next couple of decades, and is currently targeted toward 4 million mt/y.

KSPC is currently undertaking a feasibility stage, mapping out the future milestones of growth and timelines for supporting projects. The company said it will work closely with provincial and federal governments during this phase to ensure it remains in a successful position to sustain future growth.

“Optimizing our business at Bethune mine enhances the strong position of K+S as an internationally-oriented producer of minerals critical to agriculture and other industries,” said Holger Riemensperger, Chief Operating Officer, K+S Aktiengesellschaft. “Bethune mine is looking at safely and sustainably growing profitability while simultaneously reducing environmental impact, and building a more diverse and inclusive workforce while continuing to engage with local and Indigenous communities throughout all stages of the plan.”

To support these plans, KSPC is currently seeking employees in various engineering, IT, operations, trade, and supporting roles, with a longer-term outlook to hire more than a hundred additional employees – primarily in operations – as new systems are established.

“The main focus right now is to establish the team that will drive the growth plan and associated projects,” said Sam Farris, President, KSPC. “Planning for growth is an opportunity to develop infrastructure and programs that will continue our progress toward becoming world-class, and I’m confident we’ll continue to attract the talent we need across the business to realize these opportunities.”

KSPC currently employs over 400 people at the Bethune mine and Saskatoon and Port Moody offices.

Minbos Sells Rare Earth Stake to Finance Angolan Phosphate DFS; Green Hydrogen/NH3 Eyed

Africa, Ammonia, Australia, Green Hydrogen, News, News Briefs, Phosphate

Junior phosphate producer Minbos Resources Ltd., Subiaco, Western Australia, said on May 25 that it has divested its interest in Madagascan Rare Earths Project to ALS (Hong Kong) Ltd. The proceeds of A$2.46 million will be applied to complete the definitive feasibility study for the proposed Cabinda Phosphate Plant in Angola (GM Feb. 22, p. 35).

Minbos also confirmed that it has received an updated resolution from RNT-EP, Angola’s power network operator, that it intends to enter into an agreement with Minbos for the supply of hydroelectric power from the Canpunda Hydroelectric Dam, which Minbos could use for a green hydrogen and ammonia plant. Minbos is looking at the possible production of nitrogen fertilizer, as well as ammonium nitrate, for industrial uses, mainly to serve Africa’s mining industries.

The Agricultural Retailers Association – Management Brief

Management Briefs, U.S.

The Agricultural Retailers Association (ARA) recently presented Sens. Jerry Moran (R-Kan.) and Todd Young (R-Ind.) with its Legislator of the Year Award. ARA said the annual award serves to recognize one or more legislators who have championed issues that impact agricultural retailers and the entire agriculture industry.

ARA President and CEO Daren Coppock said Moran has worked to address the nation’s supply chain issues by supporting investments in transportation and broadband infrastructure, and to reform federal regulations that allow for the hiring of additional commercial drivers. Coppock said Young has also supported policies to address the driver shortage and other supply chain issues.

“Ag retailers play an essential role in providing necessary crop nutrients for our farmers in Kansas and across the country to feed the world,” said Moran. “As producers grapple with higher input costs, including skyrocketing prices for fertilizers, I am committed to working across the supply chain to finding solutions to meet these challenges and deliver American-produced food around the world.”

“Supply chain problems and rising inflation are among the issues that concern Hoosiers the most,” said Young. “Our farmers and ag retailers are eager to grow and sell the food our families need, and the DRIVE-Safe Act will help ensure there are enough truck drivers to deliver these goods to their final destinations. I will continue working with ag retailers to ensure American farm products reach the kitchen tables of American families.”

LSB Plans Green Ammonia Production at Pryor Plant

Featured, Green Ammonia, News, Southern Plains

LSB Industries Inc., Oklahoma City, on May 25 announced that it entered into agreements with Thyssenkrupp Uhde U.S. LLC, Houston, and Bloom Energy, San Jose, Calif., to develop a project to produce approximately 30,000 mt/y zero-carbon or green ammonia at LSB’s Pryor, Okla., facility.

Thyssenkrupp will develop the engineering design to convert a small portion of Pryor’s existing conventional ammonia capacity into green ammonia, while Bloom will be involved in electrolyzer supply.

“We are very excited to partner with Bloom Energy and Thyssenkrupp Uhde in taking our first step to becoming a leading supplier of zero carbon or green ammonia in a unique facility that will have two electrolyzer technologies operating side by side,” said Mark Behrman, LSB President and CEO. “We believe that being an early entrant into the green ammonia space will allow us to become a leading player as the market evolves.

“This project is very important for LSB and our partners, because in addition to its initial environmental benefit, it provides a learning opportunity,” Behrman continued. “With two electrolyzer technologies working together in a real-world application, we can learn how to effectively develop projects and operate facilities in this exciting new environment. We view this project as our first critical step in becoming a major facilitator and participant in the green ammonia market of the future.”

Green ammonia will be produced by extracting hydrogen from water using the electrolyzers powered by a renewable fuel source, such as solar or wind. Since no fossil fuels are involved in the process, the end-product has no associated carbon emissions.

Pending results of the feasibility study currently underway, and subsequent Board approval, the project will be constructed in two phases: first with Bloom supplying a 10 megawatt (MW) solid oxide electrolyzer, followed by the installation of an additional 20MW alkaline electrolyzer unit, which will be sourced from a leading manufacturer. Bloom will own, operate, and maintain the solid oxide electrolyzer that, once in operation, will be the largest of its kind in the world.

Once the second electrolyzer is installed and operational, LSB said Pryor will be the largest green ammonia production site in North America. Currently, CF Industries Holdings Inc., Deerfield, Ill., has a 20,000 st/y green ammonia plant under construction at its Donaldsonville, La. complex (GM April 23, 2021).

The green hydrogen produced from the electrolyzers as part of the ammonia production process is expected to qualify for federal incentive programs such as the production and investment tax credits currently under evaluation by Congress.

LSB’s green ammonia news quickly follows an April announcement that it plans to produce blue ammonia at its El Dorado, Ark. facility (GM April 29, p. 1). Carbon sequestration at the site will allow for the production of 375,000 mt/y of blue ammonia. Completion of that project is expected by 2025. Some 450,000 mt/y of CO2 is expected to be sequestered underneath the El Dorado plant.

LSB partner Lapis Energy will fund the full capital requirements of the El Dorado sequestration facility and will pay LSB $1/mt for the CO2. Lapis will receive the full benefit of current $50/mt tax credit under Internal Revenue Code Section 45Q. Should the credit move to $85/mt as is proposed, LSB told analysts on May 4 that an outsized portion of that increase will come back to LSB.

Intrepid Potash Inc. – Management Brief

Management Briefs, Potash, Southern Plains, Specialty

Intrepid Potash Inc., Denver, Colo., announced the appointment of Christina Sheehan as General Counsel and Corporate Secretary, effective May 17, 2022. Sheehan has been an employee at Intrepid since December 2021, most recently serving as Intrepid’s Deputy General Counsel.

Prior to joining Intrepid, she was a partner at the private practice law firm Modrall, Sperling, Roehl, Harris & Sisk, P.A. from September 2009 to November 2021. Intrepid said Sheehan specialized in environmental and regulatory law, and has legal expertise in the areas of water rights, water quality, mining, energy, air quality, natural resources, and environmental compliance.

“Christina’s experience in mining, natural resources, and water rights makes her ideally suited for this role,” said Bob Jornayvaz, Intrepid’s Executive Chairman and CEO. “Since joining the team in December 2021, we’ve benefited from Christina’s extensive understanding of New Mexico’s water and environmental regulations, and have been impressed by her leadership, work ethic, and thoughtful approach to her job. On behalf of Intrepid, I’d like to congratulate Christina on this promotion, and we look forward to her continued contributions to our team.”

African Bank Provides $1.5 B for Food Production

Africa, News, News Briefs, Russia, Ukraine

The African Development Bank Group, Abidjan, Ivory Coast, on May 23 announced that its Board of Directors has approved a $1.5 billion Emergency Food Production Facility to help tackle the global food crisis sparked by the Russian-Ukraine conflict.

The money will fund input procurement so that some 20 million African farmers can produce an extra 38 million mt of food to address growing fears of starvation and food insecurity on the continent.

Landus Joins Integrated Agribusiness Professionals

California, Featured, News, Western Cornbelt

Landus, Iowa’s largest farmer-owned cooperative, reported on May 20 that it is the latest organization to join Integrated Agribusiness Professionals (IAP), Fresno, Calif. The IAP network, which consists of 32 retailer-owners across the U.S. with annual sales exceeding $2 billion, helps its members access competitive fertilizer and crop protection positions, and also advocates on behalf of the ag retail industry.

“IAP membership better positions Landus and our farmer-owners for competitive access to fair-priced inputs and advantageous collaboration with an international network of like-minded purchasers focused on doing what’s right for the farmer,” said Matt Carstens, Landus President and CEO. “We continue to seek out valuable partnerships that benefit the more than 7,000 farmers we represent.”

Based in Ames, Iowa, Landus was formed in 2016 by the merger of Farmers Cooperative Co. (FC) in Ames and West Central Cooperative in Ralston, Iowa (GM April 15, 2016). The co-op employs about 600 full-time employees at more than 60 Iowa locations, serving over 7,000 farmer-owners with products and services in agronomy, grain, feed, animal performance, and data. The company’s agronomy offerings include fertilizer, chemicals, seed, and custom application.

“We are excited to have Landus join the IAP family of retailers,” said Jim Fargo, IAP President. “This marks an important step in the continued growth of IAP. Now in its 31st year, IAP ownership is committed to independent retailers across the US. Landus and IAP exist to improve our customers’ capabilities and competitiveness. This alliance will help both organizations create value and provide growth opportunities for our suppliers, our retailers, and the farmer customers we serve.”

IAP said it represents more than 724 PCA’s/CCA’s, 362 retail locations, and 4,809 employees across the U.S. IAP is also a founding member of AgLink International, a global alliance of independent member organizations across Australia, Canada, and Brazil. AgLink members work together to share, collaborate, and create prosperity in agriculture globally.

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