Northern Plains Nitrogen (NPN) has reportedly turned down state level funding and loans from potential institutional financiers for its Grand Forks, North Dakota nitrogen startup. NPN was expected to request a $250,000 loan from the North Dakota Jobs Development Authority to acquire a 320 acre site just west of Grand Forks, according to a Grand Forks Herald article.
But NPN President Darin Anderson now says the company is prepared to fund the land purchase themselves. NPN also rebuffed an $850,000 bank loan saying that and the $250K bank loan carried interest rates above what NPN could finance itself. The new funds, which Anderson says were not available just a few months ago, will cover the cost of getting the project off the ground without state support or bank loans.
The news comes on the heels of a September notice from NPN that shares of the company are available to 'accredited investors'. This opportunity allows farmers, ranchers and investors alike to fund the project from the ground up. Based on NPN's refusal of over a million dollars in loans and state financing, the early funding campaign has gone well.
NPN expects to break ground in 2015 and throw the switch to 'ON' sometime in 2017. The nitrogen production facility will produce urea, ammonia, solutions and other similar products, taking advantage of proximity to low cost natural gas, and Corn Belt demand for nitrogen.
Click here for more...
News footage from KVLV, Fargo/Grand Forks Channel 11