BISMARCK, N.D. (Sept.12, 2012) – North Dakota Gov. Jack Dalrymple and leaders of CHS Inc., the nation’s largest farmer-owned cooperative, today announced that the company is taking steps toward construction of a more than $1 billion major nitrogen fertilizer manufacturing plant to be located at Spiritwood, N.D., which would provide the region’s farmers with enhanced supplies of crop nutrients essential to raising corn and other crops.
CHS has selected a site on 200-acres near Spiritwood and, following further due diligence, necessary approvals and a successful engineering study, would move forward with the construction of the plant. By selecting the site, CHS is able to conduct a preliminary front-end engineering and design study, which will then be used to determine feasibility of construction plans for the project, expected to cost between $1.1 billion and $1.4 billion. CHS is investing $10 million in this first feasibility phase.
“This potential for this type of project is great news for our farmers and for the entire state of North Dakota,” Dalrymple said. “The CHS 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.”
Governor Dalrymple and CHS President and Chief Executive Officer Carl Casale made the announcement during an event at the North Dakota Capitol. They were joined by Woody Barth, president of the North Dakota Farmers Union which has helped facilitate discussions.
“By pursuing this project, CHS would be making a significant, strategic investment that ensures consistent, domestic nitrogen fertilizer supply for our farmer-owners,” Casale said. “Today CHS imports fertilizer products from 19 countries. Developing additional domestic crop nutrients sources closer to our customers is critical to meeting increasing demand, improving our logistical and distribution expertise, and adding value for the farmers who count on us.”
“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,” said Barth. “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.”
Preliminary plans call for construction of a plant to produce 2,200 tons of ammonia daily. It will be distributed as anhydrous ammonia, urea and UAN liquid fertilizer to farm supply retailers and farmers in the Dakotas and parts of Minnesota, Montana and Canada. The proposed North Dakota plant takes advantage of abundant regional natural gas feedstock. It could employ between 100 and 150 people, with a tentative start-up in the second half of 2016.
Casale said CHS is in discussions with Great River Energy and the Jamestown Stutsman Development Corporation (JSDC), who together own the Spiritwood property, to formalize project agreements related to the land and services to be provided by the power generation cooperative and JSDC. CHS will continue working with Governor Dalrymple’s office, the North Dakota Department of Commerce, JDSC, Jamestown city and Stutsman County officials, the North Dakota Farmers Union and Great River Energy to move the project forward. In addition, CHS has contracted with engineering firms CH2M Hill of Houston, Texas, and Kadrmas, Lee & Jackson of Bismarck, N.D., on site planning and related business and construction details.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2011, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
For further information: Lani Jordan, CHS Inc., +01-651-355-4946, firstname.lastname@example.org
Jeff Zent, North Dakota Governor’s Office, +01-701-328-2424, email@example.com