Fertilizer plant backs out at Spiritwood.

[sioux rube]

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.

[fightingsioux4life]

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 August 12, 2015 by fightingsioux4life

[The Sicatoka]

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

[fightingsioux4life]

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.

[UNDBIZ]

Menards can't be happy.

[JohnboyND7]

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.

[JohnboyND7]

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.

[sioux rube]

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. 

[Fetch]

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

[choyt3]

http://www.businesswire.com/news/home/20150812005542/en/CF-Industries-CHS-Announce-Agreement-Form-Strategic#.Vcui3XFVhBc

 

[sioux rube]

Looks like the water supply and the rise in costs to build were the main factors. Also doesn't look like they will build a new plant anywhere else anytime soon as they have invested in other plants to distribute their product.

http://www.jamestownsun.com/news/local/3816856-chs-wont-build

[SiouxVolley]

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

 

[Sioux>Bison]

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

[SiouxVolley]

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

[SiouxVolley]

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.

[moser53]

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.

[Siouxphan27]

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. 

[moser53]

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.

[cberkas]

4 minutes ago, moser53 said:

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

I think you need your own topic like Fetch has for your random theories. 

[bincitysioux]

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.

[NoiseInsideMyHead]

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.

[Siouxphan27]

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.  

[bincitysioux]

CHS and CF do have distribution facility in Grand Forks, just worth noting.............................

[SiouxVolley]

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. 

[andtheHomeoftheSIOUX!!]

Dakota Gasification's new urea plant is almost complete.