CHS announced today that it was canceling its plans to build a $3+ billion greenfield fertilizer plant in Spiritwood, ND - and separately announced that it was buying $2.8 billion worth of CF Industries and entering into a long-term supply agreement.
North Dakota greenfields: water or money (pick one)
The last few months have seen progress on the two big North Dakota greenfields: Northern Plains Nitrogen in Grand Forks, ND and CHS in Spiritwood, ND.
One has water, the other has money.
In the next few months, they each might have both - or not ...
CHS confirms Spiritwood plant: $3 billion cost, 2018 start
CHS today announced "the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota."
Their on-again-off-again fertilizer plant is now on, at a cost of $3 billion, and CHS intends for the plant to be "fully operational in the first half of calendar 2018." The groundbreaking "will take place following completion of additional details."
Delay for CHS greenfield in ND
The local newspaper in Jamestown reports this morning that the CHS greenfield plant in Spiritwood, North Dakota, is now on hold. Read more
CHS greenfield: $250 million capital raise, $2 billion cost
CHS is raising
up to $250 million from a share offering to fund its greenfield ammonia plant in Spiritwood, ND, according the preliminary prospectus it registered with the SEC yesterday .
“We intend to use the net proceeds of this offering for general corporate purposes. Those purposes may include partially funding the anticipated construction of a nitrogen fertilizer manufacturing plant to be located in Spiritwood, North Dakota. Although the exact cost of that construction is still uncertain, we currently expect that it would have a total cost of more than $2.0 billion” …
Read the preliminary prospectus in full.
And a local news story from late January gave a project update:
“I think we’re making progress and doing things that need to be done,” said Brian Schouvieller, CHS senior vice president. “The FEED (front end engineering and design) study is done and we’re waiting on the final report, we’re working on getting a gas pipeline, we’re working on securing the water we need, and our air permits are in public comments and could be finalized in a few weeks …
“We want to be moving dirt by this June,” Schouvieller said. “We want to have the project up and out of the ground at the end of the 2014 construction season.”
Read the full story at Prairie Business (01/20/2014).
On Monday, CHS announced that it was distributing $433 million to its co-op owners, from a net income of $992.4 million in 2013. I was waiting for an excuse to upgrade the project’s likelihood in my database.
See the updated project page for CHS’s greenfield in Spiritwood, ND.
Penwell, TX — TCEP
UPDATED: 02/16/2018 — see Change Log
OWNER: Texas Clean Energy Project (Summit Power Group LLC)
PROJECT: Greenfield plant, urea
SUMMARY STATUS: Bankrupt
The Texas Clean Energy Project was going to be a major "clean coal" power plant with significant urea byproduct but DOE effectively killed the project when it suspended funding. Initiated in 2010 and originally scheduled to be completed by 2014, the project continually failed to raise financing for such a long time that the DOE finally withdrew its support in mid-2016. In December 2016, the developers announced one last idea, ditching power generation altogether to focus on urea production but soon after, in October 2017, the company went bankrupt.
Spiritwood, ND — CHS
OWNER: CHS Inc
PROJECT: Greenfield nitrogen fertilizer plant
SUMMARY STATUS: Cancelled
CHS gave its $3.3 billion greenfield the green light in September 2014, and cancelled it in August 2015. The project faced intractable issues securing an adequate supply of water, and was beset by spiraling costs. CHS is purchasing a minority stake in CF Industries instead.