CF Industries announced Tuesday it has received final air emission permits for capacity expansion projects in Iowa and Louisiana. The Donaldsonville production facility will add urea and UAN capacity in Louisiana and the Port Neal facility in northwest Iowa will add ammonia and urea capacity.
“We are pleased that we have reached a key milestone in our capacity expansion projects in Louisiana and Iowa,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “With the issuance of these permits, we remain on track to begin construction activities at both sites this summer and believe that our projects will be among the first in North America to be in production.”
Roughly six million tons of fresh N production capacity are set to come online in the next few years and the CF expansions should be operational by 2016. Nitrogen production in the U.S. is currently 8.5 million metric tons annually and while production capacity increases will take the place of a good portion of imported material, the U.S. generally uses in the neighborhood of 20 million metric tons of N each year.
The capacity additions will bring U.S. nitrogen production up to 14.5 million metric tons annually, suggesting roughly 6 million tons in imports will be needed to top off supplies at current levels. With Yara reporting strong international sales, and China pumping out urea as fast as they can make it, the U.S. will be well positioned to meet the nitrogen needs of growers with minimal imported product required.