CF Industries Plans $3.8 Billion Nitrogen Fertilizer Expansion

CF Industries Holdings, Inc. has announced it will construct new ammonia and urea/UAN production units at its complex in Donaldsonville, LA, and new ammonia and urea units at its complex in Port Neal, IA. CF Industries’ board of directors has authorized expenditure of $3.8 billion for the projects and the company has retained engineering and procurement services from ThyssenKrupp Uhde through their affiliate Uhde Corporation of America. In combination, these projects will be able to produce annually 2.1 million tons of gross ammonia and upgraded products ranging from 2.0 to 2.6 million tons of granular urea and up to 1.8 million tons of UAN solutions, depending on product mix.

“We are pleased to announce definitive, large-scale nitrogen capacity expansion plans at our North American operations focused on substantially increasing our ability to serve our customers,” said Stephen R. Wilson, chairman and CEO, CF Industries Holdings, Inc. “We believe that our projects will be among the first in North America to be in production. We already own suitable sites, have retained a world-class engineering partner and have completed the front end engineering and design study for key components of the projects.”

The capital cost estimate of $3.8 billion includes: engineering and design; equipment procurement; construction; associated infrastructure including natural gas connections, power supply, and product storage and handling systems; and related start-up expenses.

Expenditures for the projects have begun and will continue into 2016. The Donaldsonville project budget is $2.1 billion, with the new urea and UAN plants scheduled to come on stream in the second half of 2015 and the new ammonia plant in 2016. The Port Neal project budget is $1.7 billion with the new ammonia and urea plants scheduled to come on stream in 2016. 

“Increasing both our ammonia and upgraded product capacities and our product mix flexibility at Donaldsonville takes advantage of a location that already has access to multiple modes of transportation. When the new units are complete, the Donaldsonville complex in total will be able to vary use of its urea streams to produce between 2.4 million and 3.3 million tons of granular urea and between 1.2 million and 4.2 million tons of UAN solution,” commented Wilson. “The Port Neal facility will allow us to serve upper-Midwest urea customers from a cost-advantaged location.”

The expansion of CF Industries’ capacity, at these locations in particular, allows the company to take further advantage of the global cost advantage of North American natural gas. Donaldsonville is served by five natural gas pipelines at essentially Henry Hub economics and Port Neal is well positioned to access existing gas supply from the Rockies, Mid-Continent U.S. and Canada, and the increasing supply expected to come from the Williston Basin.

CF Industries has executed engineering and procurement services contracts with ThyssenKrupp Uhde, which was selected based on the quality and integrity of the nitrogen plants they have built around the world. Front end engineering design studies for the Donaldsonville urea/UAN plants and the Port Neal urea plant have been completed. All of the major production units are of recent designs that have been installed successfully at other sites around the world. Permit applications for the Donaldsonville project and orders for some of the major equipment for both projects will be submitted by the end of this month. Permit applications for the Port Neal project will be submitted as soon as possible.

“We are pleased to have ThyssenKrupp Uhde as our technical partner in executing these projects,” stated W. Anthony Will, senior vice president of manufacturing and distribution. “We have completed a significant amount of engineering and design work with them, and the rigor of that work along with bids we have received from several construction firms give us confidence in our project cost estimates and timelines. Based upon detailed project cost analyses and price quotes from equipment providers and construction firms, we concluded that brownfield construction of new ammonia and upgraded product plants is a cost-effective means to expand CF Industries’ production capacity, yielding attractive returns for our shareholders.”

CF Industries noted that it has expectations for continued solid cash flow, a strong balance sheet, investment grade credit ratings and ready access to the debt financing markets that will allow it to fund these projects and its other long-term initiatives.

The state of Louisiana and Ascension Parish have provided a package of incentives to support the $2.1 billion investment at Donaldsonville, which is expected to create 93 direct jobs and approximately 700 indirect jobs. The state of Iowa and Woodbury County are taking action to provide a package of incentives to support the $1.7 billion investment at Port Neal, estimated to create 100 direct jobs and approximately 700 indirect jobs. The direct jobs will be at an average starting annual salary of $55,000, increasing to $85,000 per year when employees become fully certified. The company expects that as many as 3,400 construction jobs will be filled as these projects progress. These incentive packages recognize the long-term employment and tax revenue benefits that these projects will generate. CF Industries is grateful for the enthusiastic support of both states.  

Leave a Reply

Fertilizer Stories

Corn Field
FertilizerProtect Applied Manure Straight From the Manure Pit to the Field
August 10, 2017
Farmers who use liquid manure to fertilize corn crops can now mix Instinct nitrogen stabilizer in their pit for easy Read More
Corn-Irrigation
Crop InputsNitrogen: Why More Later May Be Better
August 2, 2017
The fact that new corn hybrids require an ever-increasing yield potential, and therefore a growing appetite for nitrogen and other Read More
Darin Lickfeldt Verdesian In Field
Crop InputsVerdesian: Sustainability Goes Hand in Hand with Profits
July 25, 2017
Sustainability is a hot topic in agriculture these days. And while measuring sustainability and its on-farm impact can seem difficult Read More
Soil soybean closeup
FertilizerThe 4Rs and Potassium
July 17, 2017
Are we meeting crop K needs? Using the 4R nutrient stewardship approach of selecting the right source at the right Read More
Trending Articles
Iowa waterways
Stewardship2,600 Iowa Farmers Commit $8.7 Million to Water Quality Practices
August 9, 2017
Iowa Secretary of Agriculture Bill Northey announced Tuesday that a record number of Iowa farmers signed up to install nutrient Read More
Greg Musson, Gar Tootelian
CropLife 100Cause of Gar Tootelian Fire Under Investigation
August 7, 2017
Over one hundred firefighters and equipment responded to a four-alarm shop fire at the Gar Tootelian, Inc. (GAR) facility in Read More
Rob Versprille
ManagementCeres Solutions, North Central Co-op Merger to Bring New Opportunities for Indiana, Michigan Farmers
August 1, 2017
More than 40,000 customers and almost 9,000 Indiana and Michigan farmers will begin doing business with the new Ceres Solutions Read More
CPS-Norwood-and-Dupont-reps
Eric SfiligojA Message to Ag Retailers: Do Tell Your Good Stories
July 26, 2017
As the daughter of a peanut farmer, Krysta Harden, Chief Sustainability Officer for DuPont Crop Protection, understands the importance ag Read More
Tim Hassinger Dow AgroSciences President and CEO
Crop InputsDow’s Tim Hassinger Named President, CEO of Lindsay Corp.
July 24, 2017
Lindsay Corp. has  announced the appointment of Timothy Hassinger as president and CEO and a member of its board of Read More
Stewardship‘Gonna Fly Now’ with Environmental Respect
July 20, 2017
One of the most memorable moments in movie history occurred in the Academy Award-winning 1976 film “Rocky.” Haven gotten his Read More
Latest News
RoGator RG1300B AGCO
EquipmentAGCO Opens Nominations for 12th Annual Operator of the …
August 18, 2017
AGCO Corp. has announced the opening of nominations for AGCO Application Equipment’s 12th Annual Operator of the Year. The award Read More
ManagementTravels, Mergers, and CropLife 100 Updates
August 18, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss recent trips they’ve taken, the latest news on market consolidation, and the 2017 Read More
Corn Seed
Seed/BiotechSeed Innovations Benefit All of the Seed Industry
August 17, 2017
Innovations from throughout the seed industry help address many of the economic, environmental and health issues we face as a Read More
SpreadersGVM to Introduce New Prowler at MAGIE
August 17, 2017
The newest Prowler in GVM’s line-up will be introduced next week at the Midwest Ag Industries Expo (MAGIE), August 23 Read More
AcreEdge bag
Seed/BiotechLandus Cooperative’s AcreEdge Seed Brand Gears Up for 2…
August 17, 2017
Growers in more than 26 Iowa and Minnesota counties are seeing field signs with a new brand name at end Read More
Engenia soybeans
ManagementCorn and Soybean Yield Forecasts Larger than Expected
August 17, 2017
The USDA’s August Crop Production report contained larger-than-expected forecasts for the 2017 U.S. corn and soybean crops. At 169.5 bushels Read More
ManagementU.S. Ag Secretary Introduces SCORE
August 17, 2017
U.S. Agriculture Secretary Sonny Perdue signed a new agreement to support new and beginning farmers. On August 5, Perdue joined Read More
CHS-FFA-Minnesota
CropLife 100CHS and FFA: A Homerun Partnership
August 17, 2017
CHS hosted the Minnesota FFA for its annual FFA night at CHS Field. FFA students, educators and CHS leadership enjoyed Read More
Greg Musson, Gar Tootelian
CropLife 100Gar Tootelian Foundation Donates Half Million Dollars t…
August 16, 2017
Students at Immanuel Elementary are looking forward to the first day of school for two reasons this year. One, they Read More
Water Drainage
StewardshipNew System Could Remove Two Water Pollutants from Ag Fi…
August 14, 2017
Algae blooms in the Gulf of Mexico use up the majority of the oxygen in the water, leading to massive Read More
Eric SfiligojThe Top 10 Crop Protection Companies, Post-Mega Mergers
August 14, 2017
Everyone loves a good Top 10 list. In fact, some prominent celebrities such as David Letterman spent much of their Read More
ManagementThe DuPont-Granular Deal, Dicamba Update, and Upcoming …
August 11, 2017
Matthew Grassi joins Paul Schrimpf for the second week in a row to talk about DuPont’s acquisition of Granular, as Read More
Soybeans weeds
HerbicidesOngoing Evaluation Key to Controlling Weeds, Improving …
August 10, 2017
As the sun bears down on record U.S. soybean acres this August, farmers keep their eyes on their fields to Read More
Young Corn Plants
Seed/BiotechMycogen Seeds Offers Novel Product to Battle Pythium, O…
August 10, 2017
After a season plagued by seedling diseases caused by cool, wet soils at planting, farmers have a new option to Read More
Corn Field
FertilizerProtect Applied Manure Straight From the Manure Pit to …
August 10, 2017
Farmers who use liquid manure to fertilize corn crops can now mix Instinct nitrogen stabilizer in their pit for easy Read More
Iowa waterways
Stewardship2,600 Iowa Farmers Commit $8.7 Million to Water Quality…
August 9, 2017
Iowa Secretary of Agriculture Bill Northey announced Tuesday that a record number of Iowa farmers signed up to install nutrient Read More
Natives-First-Purple_Prairie_Clover
Seed/BiotechLa Crosse Seed Continues Focus on Soil and Water Conser…
August 9, 2017
La Crosse Seed is doing its part to lead communication to ag retailers across the country on the importance of Read More
HerbicidesAg Secretary Perdue Comments on Dicamba Issue
August 9, 2017
Agriculture Secretary Sonny Perdue indicated to reporters this week that he would like to see the industry work out a Read More