CHS and OCP North America propose new Louisiana phosphate fertilizer manufacturing facility.
CHS, a farmer-owned cooperative, and OCP North America, part of the global OCP Group, are advancing plans to expand U.S. fertilizer production with a proposed joint venture. The companies are considering a new phosphate fertilizer manufacturing facility at Cornerstone Energy Park in Waggaman, Louisiana.
The proposed facility is expected to produce more than 1 million metric tonnes of phosphate-based fertilizer each year. If completed, it would become the first new phosphate fertilizer plant built in the United States since 1984.
The project could also help reduce the country’s reliance on imported fertilizer, as the U.S. currently imports about 40% of the phosphate-based fertilizer needed to meet domestic agricultural demand.
“This is an exciting moment for American agriculture. As a farmer-owned cooperative, we exist to help farmers succeed. Together with OCP North America, we have the opportunity to build the first phosphate fertilizer plant in the U.S. in more than 40 years," said Jay Debertin, president and CEO of CHS.
"This investment has the potential to create more value for our owners by bringing fertilizer production closer to the American farmer and the cooperative network.”
Under the proposed partnership, OCP Group would provide phosphoric acid for fertilizer manufacturing, drawing on its international phosphate resources and expertise.
CHS and OCP North America would distribute the finished products through their respective agricultural supply networks. The Louisiana site also offers access to raw materials and transportation through the Mississippi River system.
"This project represents a milestone in OCP North America’s commitment to serving American agriculture,” said Kevin Kimm, CEO of OCP North America. “Together with CHS, we aim to build lasting infrastructure that strengthens U.S. food security and delivers a reliable, domestically produced supply of the crop nutrients American farmers need.”
Pending approvals and funding, construction could take as long as 24 months. The development is projected to create about 60 permanent jobs and 500 construction positions in Jefferson Parish, with an estimated total impact of 924 direct and support jobs.
The project is also seeking potential federal support through the USDA’s FIELDS program, which promotes expanded domestic fertilizer production. CHS and OCP have additionally pledged charitable support for communities in the greater New Orleans area.
Photo Credit: CHS-OCP