Michigan Potash Company will receive up to $1.26 billion in loans
The U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) is supporting American agriculture through a loan guarantee.
On Jan. 17, the DOE announced Michigan Potash Company will receive up to $1.26 billion in loans to construct a potash mine and processing plant in Osceola County.
“Michigan is uniquely situated in that it contains the world’s purest reserve of potash, according to geological studies,” Michigan Potash Company said in a statement.
In total, commercial potash production could occur in nine Michigan counties, representing almost 3 million acres, according to research from Western Michigan University.
At full capacity, the new facility in Osceola County will be able to produce about 800,000 tons of potash and 1 million tons of salt per year.
The facility would create more than 1,400 jobs and reduce U.S. reliance on potash imports.
“Potash is one of the key natural fertilizers needed for agricultural production, and the United States currently imports over 90% of its annual demand, mostly from Canada,” the DOE says.
The potash will be sold directly to farmers and the ag sector in partnership with ADM, Michigan Potash says.
The loan guarantee, the job opportunities and overall support for American agriculture contribute to the project’s excitement, said Ted Pagano, Michigan Potash’s founder and CEO.
“We are truly excited and grateful for the support of the U.S. Department of Energy to help us strengthen our farmers, the noblest of professions,” he said in a statement. “The initial phase of the U.S. Potash Project is just scratching the surface of the full potential of potash in Michigan. This is a win for farmers, for consumers, and for the United States as we strive to reduce our reliance on foreign countries for this critical mineral.”