North Dakota Governor Jack Dalrymple, Farmer's Union president Woody Barth, and executives from CHS Inc. announced CHS Inc. has engaged in preliminary engineering and design feasibility studies for the construction of a new fertilizer producing complex on 200 acres near Spiritwood, ND. The production facility would convert natural gas into fertilizers, providing the region's farmers with enhanced supplies of nutrients essential to raising corn and other crops.
"This type of project is great news for our farmers and for the entire state of North Dakota," Dalrymple said. "The CHS fertilizer plant will help us further reduce the flaring of natural gas in western North Dakota and it will provide our farmers with a reliable supply of locally produced fertilizers in place of imports from foreign countries. We will continue working to add value to our energy resources and to develop more locally produced agricultural inputs for North Dakota farmers."
The project is expected to cost $1.1-$1.4 billion with CHS ponying up $10 million in the first phase of the feasibility study. When completed, the complex is projected to produce 2,200 tons of ammonia fertilizer per day including anhydrous ammonia, urea and UAN.
North Dakota Farmer's Union president Woody Barth remarked, "The ability to deliver a reliable supply of fertilizer products in North Dakota and the region is a win-win for family farmers and our farmer-owned cooperative system. We are pleased that our organization’s initial market analysis and feasibility study for building a plant of this scope has allowed us to work closely with CHS, leading to today’s announcement."
The complex will be set up to take advantage of abundant regional natural gas and will service retailers in the Dakotas, Minnesota, Montana and Canada. Initial startup is anticipated in the second half of 2016 when it hopes to employ 100-150 workers.