Jump to content
SiouxSports.com Forum
Sign in to follow this  
sioux rube

Fertilizer plant backs out at Spiritwood.

Recommended Posts

http://www.jamestownsun.com/news/local/3815992-updated-governors-reaction-chs-not-building-spiritwood

Carl Casale, CHS president and CEO, announced today that CHS had decided against moving forward with its planned nitrogen fertilizer plant at Spriritwood.

Pretty big blow to Jamestown. The plant was to have 2000 workers constructing it and 200 full time employees when up and running at an average salary of 80,000 a year. Lot of new apartments have been put up in town with more on the way but this may put those on the back burner for now.

Share this post


Link to post
Share on other sites

I think part of the problem is there was a fight over access to water for the plant. It involved someone complaining that the project would harm their private lake, which was man-made to begin with.

You won't hear any of the stakeholders talk about it, but I think that is the real reason.

I hope those people are happy and are enjoying their little lake on a hot day like this. The price was steep and will be paid by others.

Anyone else hear something similar?

Edited by fightingsioux4life

Share this post


Link to post
Share on other sites

Seems the similar planned plant for Grand Forks just got the inside track. I wondered how two could be constructed so near each other. 

Farmers will always need fertilizer and this is a big agricultural state.

Share this post


Link to post
Share on other sites

http://www.jamestownsun.com/news/local/3815992-updated-governors-reaction-chs-not-building-spiritwood

Carl Casale, CHS president and CEO, announced today that CHS had decided against moving forward with its planned nitrogen fertilizer plant at Spriritwood.

Pretty big blow to Jamestown. The plant was to have 2000 workers constructing it and 200 full time employees when up and running at an average salary of 80,000 a year. Lot of new apartments have been put up in town with more on the way but this may put those on the back burner for now.

yeah this was going to be great for everyone. BBigbummer.  Still a great place to live.

Share this post


Link to post
Share on other sites

I think part of the problem is there was a fight over access to water for the plant. It involved someone complaining that the project would harm their private lake, which was man-made to begin with.

You won't hear any of the stakeholders talk about it, but I think that is the real reason.

I hope those people are happy and are enjoying their little lake on a hot day like this. The price was steep and will be paid by others.

Anyone else hear something similar?

I'll talk to my dad later. If that's the reason they should be ashamed.

  • Upvote 1

Share this post


Link to post
Share on other sites

I think part of the problem is there was a fight over access to water for the plant. It involved someone complaining that the project would harm their private lake, which was man-made to begin with.

You won't hear any of the stakeholders talk about it, but I think that is the real reason.

I hope those people are happy and are enjoying their little lake on a hot day like this. The price was steep and will be paid by others.

Anyone else hear something similar?

That is part of it. I know the man that owns the "private lake". Went to school with his wife. Going to be interesting on how the city treats him now for the next month or so. Shoot the roads were paved and the pillars were in place for the plant. This really came out of nowhere and curious to know the main reason they backed out. 

  • Upvote 1

Share this post


Link to post
Share on other sites

Let's hope the GF plant stays on track - lower oil/gas prices u would think would help ?

Share this post


Link to post
Share on other sites

CHS didn't want the risk of an expensive new plant and CF Industries needed a partner as it had much debt, so both saw each other as natural partners.  Also, a urea plant will be built by Regina, so there's a chance their could be overproduction, which nobody wants.

http://www.wsj.com/articles/farmer-owned-co-op-chs-to-invest-2-8-billion-in-cf-industries-unit-1439381966

 

Share this post


Link to post
Share on other sites

The main driver in profitability for these kind of plants is the cost of natural gas which is still low. It is assumed that where you put this plant it will have cheap water available. Once you have to get water from a pipeline from Bismarck your competitors have the advantage. If there was a lake nearby that was blocked from use that could be the reason for the cancellation. CHS has invested a ton of money on granular fertilizer storage around the state so they had to get fertilizer from someone plus CF is the leader in production. I'm glad I didn't apply for a job at the plant! I don't think over supply would be an issue with all the surrounding states that would use this fertilizer

Share this post


Link to post
Share on other sites

The main driver in profitability for these kind of plants is the cost of natural gas which is still low. It is assumed that where you put this plant it will have cheap water available. Once you have to get water from a pipeline from Bismarck your competitors have the advantage. If there was a lake nearby that was blocked from use that could be the reason for the cancellation. CHS has invested a ton of money on granular fertilizer storage around the state so they had to get fertilizer from someone plus CF is the leader in production. I'm glad I didn't apply for a job at the plant! I don't think over supply would be an issue with all the surrounding states that would use this fertilizer

Share this post


Link to post
Share on other sites

Have an incredibly bad feeling for the markets this September.  Three billion is a lot for almost any company to spend, and with if turmoil comes to the market again, the Grand Forks and Ŕegina plants won't be built either.  Nat gas is incredibly cheap all over North America right now.  The main advantage are they are close to markets, so transport costs are minimal.

Share this post


Link to post
Share on other sites
On August 13, 2015 at 8:33 PM, SiouxVolley said:

Have an incredibly bad feeling for the markets this September.  Three billion is a lot for almost any company to spend, and with if turmoil comes to the market again, the Grand Forks and Ŕegina plants won't be built either.  Nat gas is incredibly cheap all over North America right now.  The main advantage are they are close to markets, so transport costs are minimal.

SV what are the odds on the 3 billion $ plant breaking ground in the Grand Cities.  Slim to none and slim moved to Fargo like parts of UND are about to. Breaking ground.

  • Downvote 2

Share this post


Link to post
Share on other sites
39 minutes ago, moser53 said:

SV what are the odds on the 3 billion $ plant breaking ground in the Grand Cities.  Slim to none and slim moved to Fargo like parts of UND are about to. Breaking ground.

 Holy digging up two to four-year-old dead conversations Batman.    I think this is the third one I've noticed in a week.  

You think the world is out to get Grand Forks. We get it. 

  • Upvote 1

Share this post


Link to post
Share on other sites
4 hours ago, Siouxphan27 said:

 Holy digging up two to four-year-old dead conversations Batman.    I think this is the third one I've noticed in a week.  

You think the world is out to get Grand Forks. We get it. 

Most ignore it. Not happening. In the end will blame Obama.

Share this post


Link to post
Share on other sites

I am a farmer so I'd like to see it happen.  Given my ties to the Grand Forks area, I'd love even more to see it happen there.  A project like this would be a windfall for the community, not just during construction, but for decades to come.  It would probably be among the top employers in the county along with UND and Altru.

The way that CHS pulled out of the Spiritwood project though, gives me little hope that this will happen.  If CHS can't pencil it out, I have my reservations that a bunch of private investors can make something of this scale work.

It isn't moving to Fargo either IMO.  We will just keep importing our fertilizer from China.  Apparently that is cheaper.  American labor is just too expensive.

Share this post


Link to post
Share on other sites
41 minutes ago, bincitysioux said:

It isn't moving to Fargo either IMO.  We will just keep importing our fertilizer from China.  Apparently that is cheaper.  American labor is just too expensive.

There's enough fertilizer on this website to last a generation or two.

  • Upvote 4

Share this post


Link to post
Share on other sites

It was more cost effective for CHS to purchase a share of CF Industries to secure fertilizer needs than to go ahead with the Spiritwood project.  

Better sell your house now and move to Fargo, Moser, before Grand Forks is a ghost town and all property is worthless.  

Share this post


Link to post
Share on other sites

Happen to believe that the Grand Forks fertilizer plant will get built if the corporate income tax is reduced.  An added benefit is the all kinds of foreign profits can be repatronized, which will create more investment money is the US. 

  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×