CHS, America’s leading farmer-owned co-op, and OCP North America, a subsidiary of the phosphate manufacturer OCP Group, have joined forces to build and operate a fertiliser production facility.
The joint venture, hailed by CHS as “a major step to strengthen domestic fertiliser production”, will build and operate a phosphate fertiliser production site at the Cornerstone Energy Park in Waggaman, Louisiana, which is close to the logistically important Mississippi River.
It is expected to produce over 1 million metric tonnes of phosphate-based fertiliser a year and would be the first of its kind constructed in the USA since 1984.
US phosphate reserves are declining and the country currently imports approximately 40% of the phosphate-based fertiliser that is used to meet farmer demand.
The potential to bring this new capacity online could reduce US dependency on imported phosphate-based fertiliser by more than 48%, says CHS, “significantly strengthening the domestic fertiliser supply chain”.
“This is an exciting moment for American agriculture,” said Jay Debertin, president and CEO of CHS. “As a farmer-owned co-operative, we exist to help farmers succeed. Together with OCP North America, we have the opportunity to build the first phosphate fertiliser plant in the US in more than 40 years.
“This investment has the potential to create more value for our owners by bringing fertiliser production closer to the American farmer and the co-operative network.”
The OCP Group will supply phosphoric acid to the facility, and finished fertiliser products will be distributed through both OCP North America and CHS, which serves co-ops, retailers and farmers across the US through its extensive wholesale and retail crop nutrients network.
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“This project represents a milestone in OCP North America’s commitment to serving American agriculture,” said Kevin Kimm, CEO of OCP North America. “Together with CHS, we aim to build lasting infrastructure that strengthens U.S. food security and delivers a reliable, domestically produced supply of the crop nutrients American farmers need.”
Once approved, the project is expected to create approximately 60 permanent, high impact jobs in Jefferson Parish along with 500 construction jobs, says CHS. The parties estimate that the project will have a total job impact of 924 direct and services-support jobs.
Subject to project-related and funding approvals, construction is expected to take up to 24 months.
The project aligns closely with the US government’s priority to expand domestic fertiliser production capacity to support America’s farmers. Reflecting this, an application has been submitted for potential funding through the U.S. Department of Agriculture’s Fertilizer Investment & Expansion for Long-term Domestic Supply (Fields) programme.
In addition to announcing the potential project in Waggaman, CHS and OCP have also committed to charitable giving in the greater New Orleans area.
“OCP believes that where we do business, we have a responsibility to invest in the people and communities around us, and we’re proud to stand with CHS in making that commitment to greater New Orleans,” stated Kevin Kimm, CEO of OCP North America.
“At CHS, we operate with the value of co-operative spirit, which means we invest in the communities where we live and work,” said Debertin. “We are excited to be joining with OCP to invest in this area as it supports a key role in serving America’s farmers.”
Image: CHS, OCP and government officials celebrate the joint venture in Waggaman, Louisiana. From left, Emily Domenech, executive director, Federal Permitting Improvement Steering Council; Faris Derrij, chair and CEO, OCP Nutricrops; Kevin Kimm, CEO, OCP North America; US deputy secretary of agriculture Stephen Vaden; US secretary of agriculture Brooke Rollins; Louisiana governor Jeff Landry; Jay Debertin, president and CEO, CHS ; Byron Lee, Jefferson Parish Council, District 3; and Matt Sokol, president and CEO, Cornerstone Chemical Company
