CF Industries Continues to Play Dominant Role in Ag Chemicals and Considers Entry in Gasification

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Researched by Industrial Info Resources (Sugar Land, Texas)-- CF Industries Incorporated (NYSE:CF) (Deerfield, Illinois) has weathered the storms of escalated feedstock and energy costs for years with what appears to be great success. In 2000, the company closed a sulfuric-acid plant in Bartow, Florida, just as many of its peers in the industry were trimming inefficient capacity and struggling to remain competitive in a down market. Based on project activity researched as part of Industrial Info's North American Project Database, CF Industries is planning more than $1.3 billion in capital and maintenance projects at across the United States and Canada.

The company is focusing on the long-term demand for fertilizers and related agricultural chemicals with the consideration of a nearly $350 million expansion of a plant in Medicine Hat, Alberta, planned for 2010 or 2011. These projects could begin in 2010 during or near the next planned maintenance turnaround for one of the plant's ammonia units.

Stepping outside of its traditional role in the ag-chemicals market CF Industries is studying a uranium-extraction plant addition at its Plant City, Florida, site. This addition could produce 900,000 pounds per year of uranium extracted from phosphate rock, which it has a large supply of in the region. The cost for this project could exceed $200 million and represent one of the largest projects executed by CF Industries in the state in recent years.

In another attempt to capitalize on related growth markets, CF Industries is also studying the addition of petroleum coke gasification to a hydrogen plant addition near its Donaldsonville, Louisiana, plant site. Uhde GmbH (Dortmund, Germany) has been secured to assist with a study and design concept for this plant, which could cost about $800 million to construct. CF Industries proposes to use the hydrogen and other derivatives as feedstock to produce fertilizers at its adjacent operations.

Each of these large projects will take years to plan, develop and design. The initial studies and process planning that is beginning now for these major projects will set CF Industries in a position to make the most of future demand from nontraditional resources.

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