$3 Billion Spiritwood fertilizer plant a “GO”

Spiritwood (CSi) Cenex Harvest States (CHS, Inc.) announced Friday that it is moving forward with the construction of a  $3 billion nitrogen fertilizer plant at Spiritwood

The plant has been in planning and development for two years, but was put on hold in April this year, because of escalating costs.

The announcement came from the CHS Board of Directors giving the plant its final approval on Thursday.

The plant is the largest investment in CHS history with its project costs currently estimated at about $3 billion. The plant will also be the largest construction project in North Dakota history.

CHS, Inc.,  president and chief executive officer, Carl Casale (cuh-SAL’-ee) says, “CHS is proceeding today as the plant’s sole investor, However, because our owners’ interests are at the heart of what we do, we will always pursue ownership of strategic assets and partnerships that will help us continually add value to their businesses.”

Plant construction may begin this fall, depending on the weather, and operating by 2018.  Groundbreaking ceremonies have not been scheduled.

It would use natural gas from North Dakota’s oil patch to make anhydrous ammonia fertilizer.

North Dakota’s natural gas production has been rising along with its oil output, leaving state officials and regulators scrambling to find ways to process and sell the fuel. The proposed factory will be a major customer for natural gas.

CHS is a farmer-owned cooperative based in Inver Grove Heights, Minn.

The plant is expected to employ 160-180 Full Time Employees

The CHS fertilizer plant at Spiritwood, N.D., will employ state-of-the-art

safety and operational technologies – including features that will help

reduce emissions – and will be a leader in process efficiency.

The plant will:

• Operate continuously 24 hours a day, 365 days a year

• Produce three types of fertilizers: anhydrous ammonia, urea and urea

ammonia nitrate (UAN)

• Produce diesel exhaust fluid (DEF), used by the automotive industry

as an additive to reduce NOx emissions

• CHS is committed to world class safety in both construction and

operation of the plant. It will also follow the OSHA Voluntary

Protection Program, which recognizes excellence in worker

protection and safety.

The plant will produce more than 2,400 metric tons of anhydrous

ammonia daily, which will be further processed into urea and UAN;

DEF is a byproduct of the production process. To produce this volume,

the plant will require an estimated 88,000 MMBTU/day of natural gas,

approximately 40 megawatt hours of electricity and 2,400-2,700

gallons/minute of water.

CHS has a long history of serving North Dakota agriculture. Based in

Minnesota, CHS currently has more than 1,300 employees in North

Dakota. We serve customers through N.D. agronomy, energy and

convenience store locations and we have a leading sunflower operation

based at Grandin, N.D.