Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

Brandon Sun - PRINT EDITION

Attracting investors key priority for firm planning to build N.D. fertilizer plant

Investment money is the final hurdle standing in the way of a proposed nitrogen fertilizer plant in North Dakota, according to former Brandon Simplot plant manger Don Pottinger, who is helping spearhead the project.

Pottinger said Northern Plains Nitrogen has resolved three of the four major impediments preventing construction.

A site to build the plant on has been acquired, natural gas to supply the feedstocks to produce anhydrous ammonia has been sourced and off-take agreements to ensure the product can move are essentially wrapped up, he said.

What they need now is cash.

“We have three of the four behind us — we have the land, the gas the agreement and now we are full speed ahead raising money,” Pottinger said.

A company from China might ultimately be the plant’s biggest backer, but Pottinger said there is also an opportunity for local producers to buy into the company.

At the moment, any producer willing to invest $15,000 will receive triple the equity in the plant, which will be built northwest of Grand Forks.

“The interest is there because the product that comes in is about 60 per cent imported,” Pottinger said.

While a couple of strong years might mean farmers have a little extra money in the bank, Pottinger said the plant will be even more valuable if the agricultural sector takes a dip.

“That next bushel you produce is more important when wheat is $2 compared when it is $4,” he said. “Facilities like this are important when the industry is strong, but even more important when isn’t.”

Other groups in North Dakota and Saskatchewan are also looking at similar projects.

Relying on imported nitrogen means producers are subject to a series of risks. Pottinger believes it’s paramount to be able to produce the input closer to home.

“In the nitrogen business, if all of the taps in North America are turned on, we will still have to import more than half of what is used in the country.”

The price tag of the plant is expected to top $1.5 billion.

Provided it moves ahead, at peak construction approximately 2,000 workers will be employed, with another 135 full-time positions once the plant is operational.

» ctweed@brandonsun.com

Republished from the Brandon Sun print edition December 6, 2013

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

Investment money is the final hurdle standing in the way of a proposed nitrogen fertilizer plant in North Dakota, according to former Brandon Simplot plant manger Don Pottinger, who is helping spearhead the project.

Pottinger said Northern Plains Nitrogen has resolved three of the four major impediments preventing construction.

Please subscribe to view full article.

Already subscribed? Login to view full article.

Not yet a subscriber? Click here to sign up

Investment money is the final hurdle standing in the way of a proposed nitrogen fertilizer plant in North Dakota, according to former Brandon Simplot plant manger Don Pottinger, who is helping spearhead the project.

Pottinger said Northern Plains Nitrogen has resolved three of the four major impediments preventing construction.

Subscription required to view full article.

A subscription to the Brandon Sun Newspaper is required to view this article. Please update your user information if you are already a newspaper subscriber.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media