Planned Fertilizer Capacity to Increase Across Canada

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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada is experiencing an uptick in fertilizer projects alongside the United States. Fertilizers produced in Canada are primarily exported around the world, primarily to its southern neighbor. Exporting opportunities are expected to remain strong for Canadian domestic manufacturers as they produce some of the most globally competitive products, thanks to very attractive feedstock costs.

In the U.S., crop plantings and farming subsidies that promote plantings have been increasing for several years, driving demand for fertilizers. Canada is also in a position to capitalize on cheap natural gas and existing infrastructure that includes a railway that runs across Canada and into the U.S.

There are currently 13 projects totaling $3 billion in planned investments located in Quebec, Ontario and Western Canada. These large investments are primarily from just two companies: Yara Belle Plaine (Belle Plaine, Saskatchewan) and IFFCO Canada (Vancouver, British Columbia). Yara Belle Plaine is considering two additional production units to increase its existing plant capacity of ammonia and urea. Yara Belle chose to expand the existing plant in Saskatchewan, not just because of a healthy market demand, but also because of the infrastructure and feedstock fundamentals already in place. This $1.5 billion project is anticipated to begin construction in 2014, with completion in 2016.

IFFCO Canada, a subsidiary of India Farmers Fertilizers Cooperative Limited (Allahabad, India), announced the expected construction of a $1.2 billion plant consisting of four fertilizer production units (two ammonia and two urea) in Becancour, Quebec. Quebec seemed like the ideal location for this plant due to the transportation networks already available, including rail, major roads, and the proximity to the port of the St. Lawrence River. The plant, once it is constructed in two phases, is projected to produce 4,400 metric tons per day of ammonia and 7,700 metric tons per day of urea. It is expected to begin construction in 2016 at the earliest.

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