Genesis Fertilizers Limited Partnership recently announced that Belle Plaine, Saskatchewan will be home to the suggested majority farmer-owned urea fertilizer plant that boasts 700,000 metric tons (MT). This decision followed intensive conversations among senior government representatives from the Government of Saskatchewan throughout the past two years, according to a release.
Genesis Fertilizers is now working to secure land that can accommodate the facility. The project also has the intent to develop a network of distribution facilities throughout the Prairies.
“Farmers across Canada, together with our management team, have been looking for the right opportunity to move this project forward” said Jason Mann, president of Genesis Fertilizers. “The Saskatchewan Government’s commitment to creating a competitive business environment with a strong suite of incentives will support the agriculture sector and help this project address the challenge of high fertilizer prices.”
In addition to the reduction in fertilizer net cost for farmers, Genesis Fertilizers plans to combat supply chain issues and address continuous food security concerns.
“This project has been a long time in the making, and the way all the parties have come together to move it to the next stage is amazing,” said Terry Drabiuk, vice president of business development at Genesis Fertilizers.
The company is now raising equity and debt capital that will facilitate the engineering and construction of the plant and six distribution facilities. Estimated at $1.7 billion, the proposed project would generate more than 5,000 person-years of employment throughout the design and engineer phase, in combination with an estimated 32-month construction period. The current operations have the potential to offer 130 full time jobs once the plant begins producing urea fertilizer.
“The Government of Saskatchewan has made it a priority to create a competitive business environment that supports major projects such as the Genesis Fertilizer urea facility,” explained Jeremy Harrison, trade and export development minister. “This new facility near Belle Plaine will undoubtedly benefit the people of Saskatchewan, creating more than 100 jobs and support farmers, producers and related business owners. We look forward to continuing to work with Genesis towards completion of this project.”
Western Canada is expected to feel significant financial spin off effects throughout the construction period, including fabrication, services, transportation and tax revenues.
“Canadian farmers will be the real winners with Genesis Fertilizers positioned to move forward. Whether from B.C., the Prairies, or Eastern Canada, if this project is completed, being a farmer-investor will help farming operations manage their fertilizer costs, supply availability and ultimately keep industry profits local,” added Barrie Mann, Genesis Fertilizers’ vice president of investor relations.
While Genesis Fertilizer still has a long road ahead before reaching the construction phase, picking the site and securing the support from the province of Saskatchewan was a massive step in the right direction for the project.
“There is no reason farmers can’t own a fertilizer plant; we use urea every year and we use a lot of it, why not go direct to farm? This will be a game changer for current and future generations,” said John Lloyd, Genesis Fertilizer investor and Rosetown, Saskatchewan area farmer.
