Fertilizer Demand Drives $3 Billion in U.S. Ag Chem Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Many U.S. farmers are voicing concerns about the effects of tariffs and trade wars on the cost of fertilizers and other agricultural chemicals, and some players on the chemical side are responding with domestic buildouts. Industrial Info is tracking more than $3 billion worth of U.S.-based ag chemical projects that are set to begin construction in the fourth quarter, the bulk of which is attributed to the development of nitrogenous fertilizers.

Click on the image at right for a graph detailing the top parent companies for U.S.-based ag chemical projects slated to kick off from October through December, by total investment.

One of the highest-valued projects comes from startup J Westling & Company (Omaha, Nebraska), which is preparing to begin construction on the $750 million Project Meadowlark plant in Gothenburg, Nebraska. The facility, which secured its initial project financing in 2021, is designed to produce 365,000 tons per year of urea ammonium nitrate (UAN); 146,000 tons per year of ammonium thiosulphate (ATS), and 20 million gallons per year of diesel exhaust fluid. J Westling says the project will use a zero-carbon production process that will produce emissions-reducing fuel additives as a byproduct.

Project Meadowlark received a significant vote of support in July, when the Gothenburg City Council approved a memorandum of understanding among J Westling, the city and the Nebraska Public Power District. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more from a detailed project report and plant profile.

"The plant will now use natural gas for the production process, but future expansion plans may incorporate other energy sources, giving us long-term flexibility," said Alexis Allen-Reus, a spokesperson for Project Meadowlark, in a July interview with The Gothenburg Leader. "Just look at the tariff situation. Imagine how valuable it will be for Nebraska's farmers to know that they have consistent access to a reliable input grown right here at home, rather than being forced to worry about every trade agreement or tariff announcement."

Other companies with major capital-spending kickoffs set for the coming months include Shomax Energy (Quebec City, Quebec), which is preparing to begin construction on a $50 million green ammonia plant in Wichita Falls, Texas. The facility is designed to produce 6,000 tons per year of green ammonia and 65,000 tons per year of green urea, and it will be powered in part by its own 43-megawatt (MW) solar-power plant. Subscribers can learn more from a detailed project report and plant profile.

Shomax believes its green ammonia product offers an advantage to U.S. farmers when compared with the widely used UAN. In a June press release, the company said a recent wheat trial in Electra, Texas, yielded both higher bushels per acre and higher product volume, "with some areas showing as much as 48% increase versus the UAN deployment."

In addition to the above-mentioned capital-spending projects, Industrial Info is tracking more than a dozen maintenance-related projects at ag-chemical facilities across the U.S. that are set to kick off in the fourth quarter, including three each in Alabama and California. FMC Corporation (Philadelphia, Pennsylvania) and AMVAC Chemical Corporation (Newport Beach, California) are planning turnarounds at their pesticide plants in Axis, Alabama, both of which are set to wrap up before the last week of October. Subscribers can read detailed reports on the projects from FMC and AMVAC.

In central California, JR Simplot Company (Boise, Idaho) is planning a turnaround at its plant in Helm, which produces 80,000 metric tons per year of nitric acid and liquid fertilizer, while Corteva Incorporated (Indianapolis, Indiana) is preparing for a turnaround at its plant in Pittsburg, which produces fertilizers, insecticides and personal care products. The projects are set to wrap toward the ends of October and November, respectively. Subscribers can read detailed reports on the projects in Helm and Pittsburg.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for U.S.-based ag chemical projects that are set to begin construction in the fourth quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).