North Dakota Legislators Approve Loan for Prospective Fertilizer Plant

A potential fertilizer production plant in Spiritwood, North Dakota, has received a significant boost with a $125 million loan approved by the state legislature, pending its construction within the state. NextEra Energy Resources, the company behind the project, is reportedly in land negotiation stages for both the fertilizer plant and associated wind towers.

The initiative involves constructing wind towers generating power equal to the requirements of the fertilizer plant, to be fed into the local grid. The project is expected to draw around 400 megawatts from the grid.

With estimated construction costs ranging from $3 billion to $3.5 billion, the project is expected to take at least three years to complete. The plant aims to produce anhydrous ammonia through electrolysis and create urea fertilizer using CO2 emissions from local plants. The facility also intends to source its water supply from the Red River.

Though the proposed plant won't be accommodated within the local industrial park due to space constraints, local development corporations have expressed readiness to support any company planning to establish operations within the county.

NextEra Energy Resources has commended North Dakota's efforts in encouraging new fertilizer production investments, noting the current lack of sufficient local fertilizer production capacity in the Upper Midwest. The company's core objective is to ensure a reliable in-state supply of nitrogen fertilizer, offering cost and supply stability.

In line with Senate Bill 2015, the Clean Sustainable Energy Authority is expected to launch a fertilizer development incentive program, which includes provisions for loan forgiveness. To be eligible, the production facility must be located within the state, use water electrolysis to produce hydrogen, and be owned by a U.S. or Canadian entity that borrows money under a Bank of North Dakota administered program.

The incentive program's funding is capped at $125 million, with the loan becoming available only after the plant's construction. This approach aims to encourage investments within the state and reduce the region's dependence on imported fertilizer, particularly given the recent surge in urea fertilizer prices.