All Posts from October 30, 2020

Innophos, Shrieve Partner on PPA Distribution

News, News Briefs, Northeast, Phosphoric Acid, Texas

Specialty phosphate maker Innophos Inc., Cranbury, N.J., on Oct. 21 announced its exclusive partnership with Shrieve Chemical Co. LLC, The Woodlands, Texas, to supply the U.S. asphalt market with Innophos’ Innovalt® brand of polyphosphoric acid (PPA). Innophos said the product enhances the performance of asphalt for more durable, longer-lasting pavement.

Innophos said the partnership brings together Innophos’s technology with Shrieve’s service capabilities, including logistics, warehouse, sales, and service capabilities.

“We are excited to partner with Shrieve as our exclusive distributor for Innovalt® brand of polyphosphoric acid (PPA) in the US asphalt market,” said Marco Coen, Innophos SVP Chief Commercial Officer. “With our complementary skills, we look forward to providing asphalt contractors and terminals the highest quality products and service in the industry.”

“We are pleased that Innophos has put their trust in Shrieve for the distribution of asphalt modifier in the U.S.,” said Randy Jones, Vice President of Shrieve Specialty Chemicals. “The Innovalt® product portfolio aligns perfectly with Shrieve’s strategy to become the North American leader in specialty chemical solutions for asphalt terminals and contractors, and we are looking forward to growing with Innophos as they continue to develop innovations for this market.”

Shrieve, a portfolio company of Gemspring Capital, is a marketer of industrial chemicals, performance fluids and specialty lubricants. The company markets and sells over 700 products into more than 40 countries from over 600 suppliers, with support from manufacturing and research and development facilities in North America and Asia.

Arianne Touts Lower Processing Costs

Canada, News, News Briefs, Phosphate

Arianne Phosphate, Saguenay, Quebec, a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, said on Oct. 29 it has received further results from tests designed to optimize its metallurgical process and reduce its operating costs. It said the tests show no adverse effect on the recoveries or quality of Arianne’s phosphate concentrate from using lower temperate water – 4˚C, versus the originally tested 20˚C. As a result, it said it can produce the same quality product while reducing the time and costs associated with heating.

Arianne CEO Brian Ostroff said these improvements come at a time when the company is seeing a dramatic improvement in the pricing of many agricultural commodities, including phosphates.

“Grain prices are trading at multi-year highsm helping to push fertilizer prices, with phosphate fertilizers up roughly 35 percent in the last four months,” he said. “The improving macro continues to highlight the value of our Lac à Paul project, adding to the economics of our asset and encouraging interest by potential partners, offtakers, and financiers. We continue to advance our project towards development and thus, the ability to unlock the significant economic and social benefits this project will bring.”

Truterra, AGI Collaborate

Canada, News, News Briefs, Northern Plains

Truterra LLC, (formerly known as Sustain), the sustainability business of Land O’Lakes Inc., Arden Hills, Minn., on Oct. 15 announced a new collaboration with AGI SureTrac LLC, the technology business of equipment provider Ag Growth International Inc. (AGI), Winnipeg, Manitoba.

Under the collaboration, users of the AGI’s SureTrack™ platform will have the option to access a Truterra™ Insights Score alongside agronomy, bin monitoring, and grain market information within their AGI SureTrack™ dashboard. The Truterra™ Insights Score is a stewardship baseline measurement that is generated by Truterra’s technology, Truterra™ Insights Engine.

AGI SureTrack™, a farm and facility management software platform, includes solutions for bin monitoring, automated grain conditioning, soil probes, weather stations, seed selection, agronomy, and operational and financial management. It is an independent platform that captures data across the entire farm in a platform that is owned, controlled, and built for the farmer.

“This collaboration focuses on laying the groundwork for growers to be compensated for good stewardship practices – and to deliver new ways for growers to derive value from their farm data – at scale,” said Amanda Neely, Senior Manager, Technology and Innovation, Truterra. “Across food and agriculture, there is a lot of excitement about new initiatives focused on paying growers for certain sustainability practices, but, frankly, those projects cover a very limited number of growers and acres.

“At Truterra, we believe there is enormous untapped value and potential in the market for sustainability,” she continued. “What we are doing here is focused on the big picture: building the infrastructure that could allow any grower, anywhere, to use their farm data to market their commodity crops as identity-preserved based on sustainability metrics. Ultimately, we hope to enable growers to tap into premium opportunities with midstream and downstream partners, to the benefit of their farm businesses and to the planet.”

“We are excited to offer users of the AGI SureTrack™ platform an even more comprehensive view of all of the factors impacting profitability, performance, and sustainability across their farm business,” said Tim Close, President and CEO, AGI. “Looking ahead to the future, this new capability takes us a step closer to a future where growers can market sustainably-grown grain to any buyer, and make it easier for buyers to verify to end users that grain meets specific sustainability standards, using the AGI SureTrack™ platform.”

Currently, the Truterra network touches 19 states and crops including corn, soybeans, and wheat, and harnesses the leadership and support of the Land O’Lakes network, which touches half of the harvested acres in the U.S.

American Vanguard Acquires U.S.-Based Agrinos and Australia’s AgNova

Australia, California, News, News Briefs, Specialty

Agricultural inputs provider American Vanguard Corp., Newport Beach, Calif., has recently announced that via subsidiaries it has acquired two companies – biological crop inputs provider Agrinos, Davis, Calif., and Australian crop protection company AgNova Technologies Pty Ltd., Box Hill North, Victoria.

“American Vanguard is committed to enhancing agricultural productivity by providing growers with products and application systems that facilitate yield improvement, cost savings, and environmental sustainability,” said American Vanguard Chairman and CEO Eric Wintemute. “In addition to our leading position in crop protection, we intend to expand our global participation in bio-nutritional inputs that contribute to improving soil health. The acquisition of Agrinos is a major step toward achieving that strategic objective.”

He said the Agrinos portfolio will complement the company’s Greenplants® liquid nutrition products, which have enjoyed successful growth in the Central American market. Additionally, he said Agrinos biostimulant products are tailored perfectly for use in American Vanguard’s SIMPAS® prescription application system. He said in field trials conducted over the last eight years, Agrinos technology has delivered yield increases on the order of 5-10 percent on row crop applications in corn, soybeans, wheat, rice, and cotton, and 10-17 percent in many high-value crops such as almonds, peanuts, tomatoes, melons, and grapes.

Agrinos’ intellectual property includes nearly 50 patents issued and nearly 100 pending worldwide. It has two manufacturing facilities  – a microbial input manufacturing facility located in Oregon, and a manufacturer of biostimulants in Mexico.

American Vanguard said AgNova is focused on serving customers primarily in the value-added fruit and vegetables segment of the Australian market. It has a growing product portfolio and ample R&D resources to create a pipeline of tailored solutions to meet the needs of Australian growers.

“American Vanguard is committed to increasing its existing footprint in the Australian and Asia/Pacific agrochemical market,” said Wintemute. “The team at AgNova has done an excellent job of establishing their company as an innovative, reliable supplier, and we look forward to building on that foundation of success going forward.

“In addition to a strategic focus on high-value fruit and vegetable segments, the combined commercial strength of American Vanguard and AgNova can be used to expand SIMPAS® prescription application technology, Greenplants® liquid nutrition products, and multiple biostimulants from our recent acquisition of Agrinos,” he added. “Furthermore, we will gain global rights to a number of AgNova owned products that could offer significant commercial opportunities to AMVAC operations in many other countries.”

Apache to Settle NH3 Release Case for $1.5 M

Ammonia, News, News Briefs, Southwest

Apache Nitrogen Products Inc., St. David, Ariz., will pay $1.5 million as part of a settlement with the federal government over safety and reporting violations linked to two releases of ammonia gas, according to Bloomberg Law, citing an Oct. 28 lawsuit filed in the U.S. District Court of the District of Arizona. The company is accused of violating the Clean Air Act, the Emergency Planning and Community Right-to-Know Act, and the Comprehensive Environmental Response, Compensation and Liability Act.

The federal government said the company was offloading ammonia from a rail car at its facility in Arizona when a sight glass on some piping broke, causing the release of 52,000 pounds of anhydrous ammonia in 2014. The release injured 12 Apache employees and one contractor. Another release of between 168 and 1,150 pounds of ammonia occurred in 2015 that caused an evacuation of some employees, the lawsuit said.

The government said Apache waited at least three hours before notifying the National Response Center, the State Emergency Response Commission, or the Local Emergency Planning Committee, according to the complaint. This delay violated the CERCLA and EPCRA, which require “immediate” notification.

Apache failed to comply with its risk management plan, which required documents showing compliance with good engineering practices for the use of sight glass assemblies, appropriate labeling of piping, and adequate protection for pipes, the lawsuit said.

The company also failed to maintain a safe facility by allowing the unsafe design or maintenance of equipment in its liquid ammonium nitrate unit, according to the complaint.

As part of the proposed settlement filed on Oct. 28, Apache will install emergency shutoff valves on vapor lines at rail car and truck offloading areas. The company will also train employees to ask Cochise County, Ariz., to send an alert to cellphones when the release of anhydrous ammonia may reach the public in concentrations of 35 parts per million or greater, according to the filing.

Apache had not responded to a request for comment by press time.

CF Commits to Clean Energy; Green, Low-Carbon Ammonia Projects Announced

Ammonia, Eastern Cornbelt, Featured, News

CF Industries Holdings Inc., Deerfield, Ill., on Oct. 29 announced major steps to support a global hydrogen and clean fuel economy, including the production of green and low-carbon ammonia.

CF will add an initial green ammonia project at the company’s flagship Donaldsonville Nitrogen Complex to produce approximately 20,000 st/y of green ammonia. CF President and CEO Tony Will said the price tag was $100 million in an interview with Bloomberg. The cost of the initial project is expected to fit within the company’s annual capital expenditure budget, which has ranged from $400-$450 million per year.

In addition, CF is developing carbon capture and sequestration (CCS) and other carbon abatement projects across its production facilities. CF said the implementation of these projects will enable the company to produce low-carbon ammonia. The company estimates that over time it could produce approximately 3.5 million st of low-carbon ammonia per year, which represents about one-third of its annual ammonia production capacity, without affecting its current product mix.

“The world needs clean energy, and hydrogen is a key to meeting this need,” said Will. “Low-carbon ammonia is the critical enabler for storage and transport of hydrogen and thus has a major role to play. Today’s commitment to decarbonize the world’s largest ammonia production network positions CF Industries at the forefront of clean hydrogen supply. Due to our unparalleled manufacturing and distribution network, our competitive advantage in producing low-carbon ammonia at scale is measured in terms of years and billions of dollars.

“Our existing scale and commitment to produce green and low-carbon ammonia establishes CF Industries as the clear leader in providing clean fuels for a sustainable world, while also providing a growth platform to drive long-term shareholder value,” he added.

The company said it has comprehensive Environmental, Social, and Governance (ESG) goals, covering critical environmental, societal, and workforce imperatives, including a dramatic reduction in carbon emissions across its global network. It expects a 25 percent reduction in CO2e emissions intensity by 2030, and net-zero carbon emissions by 2050. Executive compensation will be tied directly to ESG goals.

CF produced 18.3 million tons of greenhouse gas emissions in 2019, according to Bloomberg, citing CF’s latest annual report.

In order to execute these initiatives, CF said it is collaborating with leading technology companies, and has signed Memorandums of Understanding with ThyssenKrupp and Haldor Topsoe. It is also in discussions with global utilities and maritime transportation providers that have announced their intention to use low-carbon ammonia directly as a fuel.

In addition, the CF Board of Directors has established a new committee, the Environmental Sustainability and Community Committee, to oversee all aspects of the progress toward net-zero carbon emissions and the company’s active involvement in the communities in which it operates.

CF noted that hydrogen and ammonia are expected to be critical contributors to achieving net-zero carbon emissions by 2050. It said experts project that hydrogen will meet approximately 20 percent of the world’s energy need by 2050, up from less than 1 percent today. Ammonia, which is composed of three-parts hydrogen and one-part nitrogen, is a transport and storage mechanism for hydrogen, as well as a fuel.

Bunge Shares Surge on Upbeat Guidance; Fertilizer Earnings Up, Outlook Improves

Earnings, News

Shares of Bunge Ltd., St. Louis, surged after the company released results on Oct. 28 that beat analyst estimates and included improved guidance. Earnings for 2020 are now expected to come in at $6.25-$6.75 per share, excluding notable items and mark-to-market timing differences, up from $5.00 per share promised in June.

Third-quarter results came in at $2.47 per common share (adjusted net income-diluted) versus the average analyst estimate for earnings of 20 cents, and $1.28 a share for the same period last year. Profits were driven by record Brazilian exports and better soybean processing margins. Trading margins have improved as a weaker currency spurs Brazilian farmers’ sales, China loads up on American crops, and soy processing margins rebound.

Bunge has been cutting costs, shedding underperforming assets, and buying back shares in a bid to turn its business around. The return to fat profits is a stark turnaround for an agriculture industry that had gotten used to thin margins and the lack of volatility traders need to thrive, noted a Bloomberg report.

China has bought a record amount of corn, and sales of American soybeans to the Asian nation are running at their highest in data going back to 1991. Soybean processing profits have improved in the U.S. as Argentina farmers hold back their crops and dry weather in Brazil boosts prices.

Bunge shares on Oct. 28 shot up as high as 8.6 percent to $60.50, but later settled down to close at $58.06, a 4 percent increase over prior day trading.

“Looking into next year, we expect many of the favorable trends to continue with demand for our products remaining strong,” said Bunge CEO Greg Heckman. “We also expect additional global demand for vegetable oil from the growth of biofuels.”

Heckman took Bunge’s top job last year, and since then he has announced the sale of most of Bunge’s U.S. grain elevators to a unit of Japanese cooperative Zen-Noh, sold the Brazilian margarine business to JBS SA, and formed a joint venture with BP Plc for its struggling sugar and ethanol business. Bunge expects further divestment announcements before year-end.

Bunge labels its Sugar & Bioenergy segment as non-core and eventually expects to sell off its stake or form an IPO. Bunge said higher Fertilizer segment results reflected improved performance in its Argentine operations driven by higher margins, partially offset by lower volumes. The company now expects full-year Fertilizer adjusted results to be slightly higher than last year.

Fertilizer third-quarter gross profit was $30 million on net sales of $153 million, up from the year-ago $28 million and $178 million, respectively. Adjusted EBIT was $29 million, up from the year-ago $22 million. Volumes were off at 485,000 mt from 512,000 mt.

Fertilizer nine-month gross profit was up at $61 million on net sales of $324 million from the year-ago $44 million and $355 million, respectively. Adjusted EBIT was $53 million, up from $30 million. Volumes were up slightly, to 1.04 million mt from 1.01 million mt.

Bunge-wide third-quarter net income attributable to the company was $262 million on net sales of $10.2 billion, versus the year-ago loss of $1.49 billion and $10.3 billion, respectively. Adjusted EBIT was $512 million, up from $279 million.

Nine-month net income was $594 million on sales of $28.8 billion, up from the year-ago loss of $1.23 billion and $30.4 billion. Adjusted EBIT was $1.18 billion, up from $793 million.

Seven Found Dead in Fertilizer Container

News, News Briefs

Seven people were found dead in a container carrying bagged fertilizer on a cargo ship that recently arrived in Asuncion, Paraguay, according to an Associated Press report on Oct. 23. The vessel just recently arrived in Paraguay after departing Serbia in July 22. Three of the victims were identified as Moroccan, one as Egyptian, and the other three were unidentified.

Mosaic K2 Not Impacted by COVID-19 Cases

News, News Briefs, Potash, Saskatchewan

Two surface-level employees at The Mosaic Co.’s K2 potash mine tested positive for COVID-19, according to an Oct. 25 CBC report citing the Saskatchewan Health Authority and Mosaic. A Mosaic spokesperson was quoted as saying that operations were unaffected, that the two were self-isolating, and any employees who may have come into contact with either positive case were contacted and are also self-isolating.

Compass 3Q Income Expected Up

Earnings, News, Specialty

Compass Minerals, Overland Park, Kan., is expected to report higher income and EBITDA for the third-quarter ending Sept. 30, 2020, according to the Bloomberg Model Consensus, the average of major analysts’ projections as of Oct. 29.

Third-quarter net income is projected to be $14.6 million on revenue of $319.5 million, up from the year-ago $10.6 million and $341.3 million (GM Nov. 8, 2019), respectively. EBITDA is forecast at $74.9 million, up from $67 million.

Analysts expect the Plant Nutrition North America segment to see improved operating income at $5.1 million, up from the year-ago $4.7 million, with EBITDA remaining about level at $15.6 million versus the year-ago 15.7 million.

Analysts expect North American fertilizer volumes to be down, at 63,440 st from the year-ago 69,000 st. However, they expect average sales prices to be up, at $659.2/st versus the year-ago $641/st.

Analysts expect both operating income and EBITDA to be down at Plant Nutrition South America, to $19.4 million and $24.9 million, respectively, compared to the year-ago $22.4 million and $28.8 million.

Compass is expected to release results on Nov. 4 after markets close.

Disclaimer of Warranty
All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

For additional details visit our Terms of Use.