UPDATED: 02/06/2018 — see Change Log

OWNER: Nutrien, formerly Agrium
PROJECT: Nitrogen fertilizer plant, urea expansion[memberful does_not_have_subscription=”1314-ammonia-industry-annual-subscription,1311-ammonia-industry-monthly-subscription,3338-ammonia-industry-30-day-subscription”]

EXISTING PLANT:
COST (reported): None given
JOB CREATION (reported): 500+ permanent — see Job Openings [LINK]
START-UP DATE (reported): 1968

CAPACITY	USGS[1]	COMPANY[2]	PERMIT[3]	ADJUSTED[4]
Ammonia		923,167 mtpy	[Membership required]	[Membership required]
Units: stpd, stpy, mtpd, mtpy = short/metric tons per day/year. [1] United States Geological Survey (USGS) Mineral Yearbook, Nitrogen gives capacity in metric tons per year, calculated as “engineering design capacity adjusted for 340 days per year of effective production capability,” rounded to three significant digits. Source: most recent year, Table 4: Domestic Producers of Ammonia, http://minerals.usgs.gov/minerals/pubs/commodity/nitrogen/. [2] Nutrien Fact Book 2018. Sources linked below. [3] [Membership required]. Sources: linked below. [4] [Membership required]. See Methodology.

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SUMMARY STATUS: Operational, expansion cancelled
The Redwater fertilizer plant, which started up in 1968, may be the largest fertilizer complex in Canada. An expansion of the urea plant was cancelled in 2013. Redwater should soon begin feeding its excess CO2 into a new pipeline, the Alberta Carbon Trunk Line, which will transport it to old oil fields for EOR and underground storage. In January 2018, Nutrien was formed through a “merger of equals” between Agrium and PotashCorp that was originally announced in September 2016.

COST: None given
JOB CREATION: 500+ permanent — see Job Openings [LINK]
START-UP DATE: 1968, expansions 1983 and 2010

CAPACITY	USGS[1]	COMPANY[2]	PERMIT[3]	ADJUSTED[4]
Ammonia		923,167 mtpy GROSS 231,766 mtpy NET		923,167 mtpy GROSS 231,766 mtpy NET
Urea		716,364 mtpy GROSS		716,364 mtpy GROSS
Ammonium Sulfate		355,000 mtpy		355,000 mtpy
Ammonium Nitrate		250,000 mtpy GROSS		250,000 mtpy GROSS
UAN		180,000 mtpy		180,000 mtpy
MAP		660,000 mtpy		660,000 mtpy
Units: stpd, stpy, mtpd, mtpy = short/metric tons per day/year. [1] United States Geological Survey (USGS) Mineral Yearbook, Nitrogen gives capacity in metric tons per year, calculated as “engineering design capacity adjusted for 340 days per year of effective production capability,” rounded to three significant digits. Source: most recent year, Table 4: Domestic Producers of Ammonia, http://minerals.usgs.gov/minerals/pubs/commodity/nitrogen/. [2] Nutrien Fact Book 2018. Sources linked below. [3] No air permit documents available. [4] Adjusted Capacity is in metric tons per year; based on Nutrien’s data. See Methodology.

FEEDSTOCK: Natural gas
END PRODUCTS: Ammonia, Urea, UAN, Ammonium Nitrate, Ammonium Sulfate, MAP

RESEARCH NOTES:
In January 2018, Nutrien was formed through a “merger of equals” between Agrium and PotashCorp that was originally announced in September 2016.

Redwater should soon begin feeding its excess CO2 into a new pipeline, the Alberta Carbon Trunk Line, which will transport it to old oil fields for EOR and underground storage. Given the movement in Alberta toward the introduction of a carbon tax, this may prove timely indeed.

The Redwater fertilizer complex was built by Imperial Oil Limited (later Esso Chemical Co) and started up in 1968. In 1994, Sherritt Inc purchased Imperial’s fertilizer assets, becoming “the largest producer of nitrogen and phosphate fertilizers in Canada.”

In 1995, Sherritt split its businesses into two companies: Sherritt International Corporation, which retained most segments including oil and gas, commodities, and mining, and Sherritt Inc, which held the fertilizer assets. In 1996, Sherritt Inc renamed itself Viridian Inc, and was promptly acquired by Agrium, who took over the Redwater plant and one in Fort Saskatchewan, AB.

Sherritt still operates its own, smaller ammonia plant in Fort Sasketchewan, AB.

In 1968, the original Redwater plant included Ammonia Line I (capacity 200,000 mtpy), and plants for ammonium nitrate (capacity 200,000 mtpy) and MAP (capacity 250,000 mtpy). These were expanded in 1981.

In 1983, Ammonia Line II was built (original capacity 560,000 mtpy), along with the urea plant (original capacity 520,000 mtpy).

In 2010, the plants were again expanded, bringing production capacity close to today’s levels. At the same time, Agrium started up new plants to produce UAN and ammonium sulfate.

In 2018, the two ammonia lines had capacities of 267,182 and 655,985 mtpy respectively. The site also has a phosphoric acid (P2O5 equivalent) capacity of 345,000 mtpy.

The urea plant was under evaluation as a potential expansion site, but those plans were cancelled in 2013. The $150 million project would have brought an additional 500 tons of urea per day, a 25% increase.

Agrium claimed the Redwater plant was “the largest fertilizer complex in Canada,” although CF Industries made a similar claim for its nearby plant in Medicine Hat, AB. Redwater produces more end products, while Medicine Hat has a bigger ammonia capacity. [/memberful]

View larger map with all ammonia plants.

ADDRESS: 16 km East of Gibbons on Highway 643, Redwater, Alberta T0A 2W0, Canada

WEBSITE: https://www.nutrien.com

REGULATORY SOURCES:

• USGS: Minerals Yearbook, Nitrogen [RECENT / ARCHIVE]
• US Securities and Exchange Commission regulatory filings: EDGAR Search Results, Agrium Inc., CIK#: 0000943003 [LINK]

NEWS SOURCES:

• 01/02/2018: Nutrien press release: Agrium and PotashCorp Merger Completed Forming Nutrien, a Leader in Global Agriculture [LINK]
• 01/2018: Nutrien Fact Book 2018 [PDF]
• 11/25/2016: Daily Commercial News: World’s biggest CO2 pipeline set to begin final phase [LINK]
• 09/12/2016: Agrium / PotashCorp merger presentation: Creation of a World-Class Integrated Global Supplier of Crop Inputs [PDF]
• 09/12/2016: Agrium press release: Agrium and PotashCorp to Combine in Merger of Equals to Create a World-Class Integrated Global Supplier of Crop Inputs [LINK]
• 2015: Agrium Fact Book 2014-2015 [PDF]
• June 2015: Agrium Brochure: Redwater [PDF]
• 06/03/2013: Agrium press release: Agrium Continues Assessment of Nitrogen Expansions [DEAD LINK]
• NO DATE: Agrium Wholesale webpage: Redwater Brownfield Expansion [DEAD LINK]