All Posts from January 6, 2023

Sulvaris Inc. – Management Brief

Management Briefs

Sulvaris Inc., a privately-held company headquartered in Calgary, Alberta, has announced the promotion of Jake Underwood to President and CEO, effective Jan. 2, 2023. He served as the President and COO this past year and will transition into this new role previously held by company Founder Rick Knoll.

“We are excited to have Jake as our new CEO and a member of our Board of Directors, to further drive Sulvaris ahead in our continued growth strategy. Jake has built a career leading sales, marketing, and business development-strategy teams across the agriculture and technology industry. In his time with Sulvaris, we have accelerated our commercialization efforts and continued building long term value for the road ahead” commented Jeff Scott, Chairman of the Board for Sulvaris.

“I’m honored to have the opportunity in leading this organization for the future. We have an exceptional team of people at Sulvaris who are passionate, driven to succeed, and challenge themselves everyday to develop new technologies. I look forward to supporting each of them ahead, while delivering our Sulvaris corporate objectives creating additional value for our existing and future Licensed Technology Partners and Shareholders, as we expand our MST and CCT platforms globally” noted Underwood.

“Rick Knoll will continue to be a valuable member of the organization as he remains on the Sulvaris Board of Directors, we’re extremely grateful for all he’s done for the organization and its employees. We wouldn’t be where we are today without the innovation, hard work and countless contributions he’s made over the years” added Scott.

Underwood spent 16 years in Ag Retail with the JR Simplot Co. and Nutrien Ltd. (Agrium-CPS-Loveland Products) managing focus around Seed, Fertilizer, Crop Protection, and differentiated Proprietary Products. Prior to joining Sulvaris he held executive leadership roles with early-stage companies such as Verdesian Life Sciences and WISErg Corp., leading nutrient use efficiency and sustainable platform full circle solution technologies. Sulvaris said that with over 20 years management experience in driving innovation and growth, he has a proven track record of success in delivering valuable solutions to customers and maximizing shareholder value.

Mosaic Oct.-Nov. Potash Volumes Off, Revenues Up

Earnings, News, Phosphate, Potash, Tampa

The Mosaic Co. reported October-November potash sales volumes of 1.25 million mt, down from the year-ago 1.31 million. However, revenues were up at $780 million from the year-ago $529 million.

The company said total fourth-quarter potash sales volumes are now expected to be in the range of 1.8-2.0 million mt, with realized MOP pricing at the mine in the range of $560-$600/mt. Earlier in the quarter, the Colonsay potash mine was temporarily idled as a result of the slower-than-expected recovery in demand (GM Dec. 9, 2022).

Phosphate volumes were down for the two-month period to 914,000 mt from the year-ago 1.14 million mt, with revenues also seeing a decline to $785 million from $902 million. Fourth-quarter phosphate sales volumes are expected to be in the range of 1.5-1.7 million mt.

Guidance for realized DAP prices on an FOB basis remains unchanged at $700-$750/mt. The company said that in addition to slower markets, lingering issues stemming from Hurricane Ian have continued longer than previously expected. Repairs to sulfuric acid plants supporting production at the Bartow facility are now expected to be completed early in the first quarter of 2023.

Mosaic Fertilizantes saw a slight decrease in sales volumes for the two-month period to 1.52 million mt from the year-ago 1.57 million mt. However, revenues were up, at $1.24 billion from the year-ago $989 million.

While demand recovery for both phosphates and potash has been slowed by seasonality in late 2022, Mosaic anticipates 2023 to be a strong year for nutrient application, supported by historically strong crop prices and constructive grower economics.

California Blue Ammonia Project Advances; CO2 Sequestration Agreement Announced

Blue Ammonia, California, Carbon Dioxide, Featured, Hydrogen, News

California’s first blue ammonia and hydrogen facility, has lined up a Carbon Dioxide Management Agreement (CDMA) to sequester 370,000 mt/y of carbon dioxide (CO2) in San Joaquin County in Northern California. The project would produce 150,000 mt/y of blue ammonia and 10,000 mt/y of blue hydrogen.

The CDMA, which was announced on Jan. 4 by California Resources Corp. (CSC), Long Beach, an independent oil and natural gas company, is between CSC’s Carbon TerraVault Holdings LLC (CTV) and Grannus LLC (Grannus), an independent clean-tech company that is building a portfolio of blue ammonia and hydrogen production facilities to supply the agriculture, mobility, and marine fuel markets. Founded in 2012, Tucson’s Grannus is advancing projects in California and Alaska (GM Sept. 9, 2022; Aug. 12,).

The blue ammonia facility will use Grannus’ patented process, which is expected to operate a virtually emissions-free facility once the CO2 is sequestered. The blue ammonia is expected to be supplied to CALAMCO, a California-based cooperative that is also an investor in Grannus. Grannus has entered into a master ammonia sales agreement with CALAMCO in an amount up to its total ammonia requirements. A binding offtake agreement is subject to finalization and approval by Grannus and CALAMCO.

“As a next generation clean-tech company, we are excited to partner with such a knowledgeable carbon management provider as Carbon TerraVault due to their unique vault positioning in the heart of Northern California’s industrial sectors, strong subsurface expertise, and their leadership in California’s new energy economy and carbon management,” said Grannus CEO Matthew Cox. “California’s first blue ammonia fertilizer production facility is expected to further reduce the carbon intensity of California’s agricultural sector while delivering environmentally conscious food to every American’s doorstep. We look forward to furthering our decarbonization efforts in California.”

The Final Investment Decision (FID) for the project and commercial operational dates are being further refined; however, the project is expected to be commercial by the end of 2027 at the latest. aligning with CTV’s goal of 5 million mt/y by end of 2027.

The CO2 will be captured and then stored permanently underground by CTV. The CTV facility has CO2 storage capacity of 71 million mt. CTV will provide infield transportation and a permanent CO2 storage site in exchange for an injection fee on a per ton basis. The project’s location in proximity to the CTV III vault will eliminate the need for long haul CO2 transportation and certain midstream capital requirements. The parties said CO2 capture capital will be effectively eliminated as CO2 capture equipment, the most capital-intensive portion of CCS projects, is inherently incorporated into the base design of the Grannus project.

The CDMA provides Grannus with access to 50 surface acres, with the option for an additional 50 acres if expansion is pursued. CTV will have the right to take a majority stake in the total outstanding equity of the project company that holds the Grannus project. It will have an option to purchase equity in Grannus, as well as a right of first refusal to provide storage services for subsequent Grannus ammonia and hydrogen projects in California.

The construction process of the project and the associated CCS infrastructure is expected to provide at its peak approximately 250 temporary construction jobs and 31 permanent technical jobs.

CSC last month announced that its Carbon TerraVault JV Holdco (CTV JV) has a CO2 sequestration agreement with Lone Cypress Energy Services LLC, Tulsa, an independent energy company, for the proposed Lone Cypress Hydrogen Project, in Kern County, which aims to be California’s first blue hydrogen facility. It will produce 30 mt/d of hydrogen with the potential to expand to 60 mt/d with up to 200,000 mt/y of CO2 sequestration.

Kugler Co. – Management Brief

Management Briefs, Specialty, Western Cornbelt

Kugler Co. in December announced the promotion of Tom Kohmetscher to Wholesale Marketing/Sales Manager, replacing Ron Soden, who announced his retirement after 48 years of service to Kugler and the fertilizer industry. Kohmetscher previously served as Retail Sales Manager at Kugler for 22 years, a role that was taken over by Chad Magnusson in October.

Founded in 1924 and headquartered in McCook, Neb., Kugler Co. is a regional manufacturer and supplier of liquid fertilizer products that are shipped coast-to-coast, as well as internationally.

The Mosaic Co. – Management Brief

Management Briefs, Tampa

The Mosaic Co. on Jan. 5 announced that Phil Bauer has been promoted to Senior Vice President, General Counsel, and Corporate Secretary, effective Jan. 3, 2023.

Since joining Mosaic in 2007, Bauer has managed legal support for business development activities, potash operations, offshore finance, commercial transactions, and corporate governance. His most recent assignment was as VP-Growth and Development, where he helped drive strategic vision across the organization, including the advancement of Mosaic’s soil health strategy and other innovation initiatives.

Prior to joining Mosaic, Bauer was a partner at an international law firm where he focused his practice on mergers and acquisitions, public and private securities offerings, and public company compliance matters, as well as general business advising.

Bauer earned his Juris Doctor degree from The George Washington University Law School in Washington D.C., and his B.S. in Foreign Service degree with honors from Georgetown University’s School of Foreign Service, where he majored in international politics. He also received his MBA from the Kellogg School of Management at Northwestern University.

Bauer succeeds Mark Isaacson, who is retiring in early 2023 after 34 years with Mosaic and predecessor companies.

AmmPower to Acquire Majority Stake in Progessus Clean Technologies

Canada, News, News Briefs

Clean technology developer AmmPower, Toronto, on Dec. 30 announced that it has entered into a binding letter agreement to acquire 50.05% of the issued and outstanding common shares of Progressus Clean Technologies Inc. (formerly AES-100 Inc.), Toronto, a venture-stage green technology company focused on the development of novel hydrogen generation and separation technologies.

AmmPower said Progressus’ intellectual property has the potential to directly improve the ‎efficiency of ammonia production through the extraction of hydrogen from dilute syngas. ‎AmmPower expects to be able to use the Progressus hydrogen extraction technology in a ‎variety of ammonia use cases, including shipping, cracking, and for use in its IAMM™ (Independent Ammonia Making Machine) ‎fertilizer units.

‎”The Progressus intellectual property allows us to expand our technology based clean energy ‎agenda,” said Dr. Gary Benninger, AmmPower CEO and ‎Executive Chairman. “We have multiple use applications where the Progressus technology will enable us to ‎be more vertically integrated while reducing system costs.”

AmmPower will acquire the 50.05% from certain shareholders (vendors) of Progressus. In consideration, AmmPower will issue an aggregate of 50,000,000 common shares of the company to the vendors at a deemed price of C$0.30 per company share.

In connection with the transaction, the vendors have also agreed to provide to the company an aggregate loan of $500,000, payable as follows: (a) $250,000 on the closing of the transaction, and (b) $250,000 on the date that is 30 days following the closing of the transaction. Both the initial loan and additional loan will bear an interest rate of 10% per annum, mature twelve months from the date of funding, and be convertible into company shares at a deemed conversion price equal to the trading price of the company shares on the Canadian Securities Exchange on the date of conversion.

The parties said they intend to complete the transaction as soon as is practicable, and subject to satisfactory completion of customary closing conditions, will use commercially reasonable efforts to enter into a definitive share purchase agreement by early January 2023.

According to its website, Progressus is a private company owned primarily by PowerTap Hydrogen Capital Corp., a hydrogen technology company, Vancouver, B.C., and Aberdeen International, a global resource investment company, Toronto, with a minority interest being privately held.

Progressus on Sept. 27, 2022, announced that it had discontinued negotiations with BioQuest Corp., Newport Beach, Calif., which has been involved in the CBD marketplace, pursuant to the Letter of Intent executed and announced on June 23, 2022, whereby BioQuest would acquire all of the issued and outstanding shares of Progressus.

Turkish Fertilizer, Feed Prices Fixed for Four Months

News, News Briefs, Turkey

Shares of Turkish fertilizer producers recently fell after President Recep Tayyip Erdogan said fertilizer and feed prices would remain fixed for at least four months, according to a Dec. 27 Bloomberg report. Fertilizer and feed prices will remain fixed until the end of April, state-run Anadolu Agency reported Erdogan as saying at a Dec. 26 cabinet meeting.

Meanwhile, agricultural credit cooperatives will apply a discount of up to 13% on chemical fertilizers and up to 5% on compound feed.

Hektas, which produces organomineral fertilizer, was not impacted by the announcement. However, the news may pressure shares of chemical fertilizer producers such as Gubretas, Bagfas, Tekfen, and Istanbul-based Oyak Securities.

Tessenderlo Acquires Spanish Rendering Assets

Europe, News, News Briefs, Specialty

Tessenderlo Group, Brussels, on Jan. 3 announced that its Akiolis business unit (Bio-valorization segment) has acquired the real estate and production assets of the former Spanish rendering company Promed 202, Ribera d’Ondara, Lleida, Spain.

The plant specializes in the rendering of pork and poultry, and is located in one of the densest regions for pork and poultry farms in Spain. Tessenderlo said the acquisition will expand the activities of Akiolis on the Iberian Peninsula and strengthen its position in the European rendering market. Akiolis intends to resume operations in the course of the first quarter of 2023 under the name Akiolis Iberia.

Akiolis, with its headquarters in Le Mans, France, specializes in rendering activities and the production of high-value proteins and fats derived from animal byproducts. The industrial processes of Akiolis allow the valorization of its ingredients in markets such as the organic fertilization, pet food and animal nutrition, aqua feed and oleo chemistry, gelatins, cement plants, and energy sectors. In France, Akiolis currently has 12 production plants, with one of those in Violleau for organic fertilizers.

Tessenderlo said the transaction will have no material impact on its results.

Arkema Completes Febex Sale to Prayon

Europe, News, News Briefs, Phosphoric Acid

Arkema on Jan. 3 finalized the divestment of Febex, a company specialized in phosphorus-based chemistry, to Belgian group Prayon (GM Oct. 28, 2022).Febex is a global player in phosphorus derivatives (high purity phosphoric acid, sodium hypophosphite, and derivatives), used primarily in electronics and in the pharmaceuticals industry.

Arkema said Febex has been a part of the Performance Additives Business Line, with little integration within Arkema’s other activities.

Febex reported sales were around €30 million in 2021. It employs 59 people, and operates one site in Switzerland.

Prayon said the acquisition marks an important step in strengthening its position in phosphorus chemistry. Prayon will enter the electronics market, which it said has strong growth potential in Europe and the US. The acquisition will also enable Prayon to enter the pharmaceutical sector, gain access to the polyphosphoric acid market, and broaden the range of industrial solutions downstream of purified phosphoric acid production, in which Prayon already participates in Europe.

Prayon is jointly owned by OCP of Morocco and SRIW of Belgium.

Brenntag Ends Talks with Univar

Germany, News, News Briefs

Univar Solutions slipped about 2% on Jan. 3 after the chemical distributor confirmed that German-based Brenntag SE ended discussions about a potential takeover (GM Dec. 2, 2022), according to Bloomberg. Univar said it would continue talks related to “other indications of interest” that it has received with respect to a potential transaction. However, it said there is no assurance that the ongoing process will result in a transaction.

A Univar-Brenntag deal would have created the world’s largest chemical distributor and establish a company with more than $30 billion in sales.

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