Nutrien (CA:NTR), a producer of 27 million tonnes of potash, nitrogen and phosphate products for agricultural and industrial customers, announced that it would partner with ThyssenKrupp Uhde (DE:TKA) on its Louisiana clean ammonia facility.
ThyssenKrupp Uhde has years of experience building ammonia plants. It has 130 worldwide.
Nutrien first announced its Louisiana project in May, suggesting the town of Geismar would be the location of the world’s largest clean ammonia facility. Nutrient intends to make a final investment decision in 2023. If it decides to go ahead with the project, it will invest US$2 billion in the facility. Construction would begin in 2024, with the first production scheduled for 2027.
The plant’s expected to produce 1.2 million metric tonnes of clean ammonia annually and capture 90% or more of CO2 emissions.
“This partnership with ThyssenKrupp Uhde marks another important milestone in our commitment to provide solutions to help meet the world’s decarbonization goals through leadership in clean ammonia production,” said Trevor Williams, Interim President, Nitrogen and Phosphate at Nutrien. “We are glad to have an experienced partner with the technology and proven execution competence to join us on this journey as we strive to feed and fuel the future sustainably.”
The Saskatoon-based potash fertilizer company has been in limbo since the merger with PotashCorp and Agrium in 2018. In August, it hired Ken Seitz as its third CEO in four years. Seitz joined the company in 2019 as the head of Nutrien’s potash business.
Seitz and Nutrien believe the potash bull market will continue into 2023. The company is boosting potash production at its six Saskatchewan mines by 20% over the next three years to 18 million tonnes.
Nutrien’s business remains very strong.
In the second quarter ended June 30, the company reported record sales for the first six months of 2022. Its adjusted EBITDA in the first half was US$7.6 billion on revenue of US$22.2 billion. For all of 2022, Nutrien expects adjusted EBITDA of US$14.75 billion at the midpoint of its guidance.
In the first six months of 2022, Nutrien paid out US$521 in dividends and US$1.6 billion in share repurchases. It plans to pay out US$1.0 billion in dividends and US$5.0 billion in share repurchases for 2022.
In July 2022, Nutrien announced the acquisition of Brazilian agriculture products retailer Casa do Adubo. The retailer has 39 retail locations and ten distribution centers in Brazil, selling ag products under the Agrodistribuidor Casal brand.
The acquisition adds US$400 million in annual revenue. This brings Nutrien Ag Solutions’ annual sales in Latin America to US$2.2 billion.
“We appreciate the reputation Casa do Adubo has earned for delivering strong financial performance, attracting top talent, and offering quality products and services,” said André Dias, Nutrien’s Regional Leader in Latin America. “With the acquisition, we will strengthen our existing presence and expand to serve additional growers with innovative solutions that help sustainably feed the world.”
Nutrien reports its Q3 2022 results on Nov. 2 after the markets close.
This article originally appeared on Fintel
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