Posey County Nitrogen Project Awards Construction Contract

December 19, 2013 07:29 AM

Despite faltering in the early stages of the project, Midwest Fertilizer announces it has inked an agreement with a Jacobs Engineering who will provide program management services for a controversial nitrogen project in Posey County, Indiana.

The $2.4 billion project will begin construction in November 2014 and expects to be up and running late in 2017. The project, which is owned in part by Pakistani Fertilizer maker, Fatima Group, came under fire from Indiana Governor Mike Pence's office who refused to fund the project.

Governor Pence's refusal was related to reports from Department of Justice officials that ammonium nitrate produced in Fatima's Pakistani facilities was used by insurgent forces to create improvised explosive devices. Lt. General Barbero, now retired, worked directly with Fatima in Pakistan to insure that was not the case. Gen. Barbero returned to the U.S. saying Fatima had made the necessary adjustments in production and distribution practices and in the packaging of dangerous ammonium nitrate.

Posey County, recognizing the economic potential of the project, then stepped in with a financing package of their own, and the project is moving forward.

With a construction and engineering contract now in place, groundbreaking is that much closer and while increased domestic nitrogen production is not expected to dramatically lower the price of U.S. nitrogen, the increased supplies will moderate price volatility and source nitrogen directly from farm country, where it is needed the most.

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