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Nutrien announces plans to increase fertilizer production capabilityqrcode

−− Ramping up potash production capability to 18 million tonnes by 2025

Jun. 13, 2022

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Jun. 13, 2022
Nutrien Ltd (TSX and NYSE: NTR) announced it plans to increase fertilizer production capability in response to structural changes in global energy, agriculture and fertilizer markets. The company has hosted a virtual investor update meeting and provided details on its strategic growth and capital allocation plans at this event.

“The challenge of feeding a growing world has never been clearer as global supply constraints have contributed to higher commodity prices and escalated concerns for global food security. There is no simple or fast solution to overcome this challenge and we see potential for multi-year strength in agriculture and crop input market fundamentals,” said Ken Seitz, Nutrien’s Interim President and CEO.

“Nutrien’s integrated business is best positioned to respond to these supply challenges and help sustainably feed a growing world. We are safely bringing on additional low-cost potash and nitrogen production from our existing facilities, while delivering the products, services and solutions growers need through our leading global Retail network,” added Mr. Seitz.

Accelerating Potash Production Ramp-Up

Nutrien is accelerating the ramp-up of its annual potash production capability to 18 million tonnes by 2025 in response to the uncertainty of supply from Eastern Europe. This represents an increase of more than 5 million tonnes, or 40 percent, compared to Nutrien’s production in 2020. The acceleration pathway is through existing low-cost capacity that is unmatched in the industry and supported by world-class global logistics infrastructure. The incremental production capability is expected to be added at a similar annual pace to the additions over the past two years.

To boost production, the company will hire and train approximately 350 people and invest in underground mining equipment, mine development, storage and loadout capacity. Nutrien continues to evaluate additional low-cost brownfield expansion opportunities beyond 18 million tonnes at its Saskatchewan mines that would supply longer-term market demand growth.

Enhancing Nitrogen Portfolio

Nutrien is advancing previously announced brownfield expansion projects that are expected to add approximately 500,000 tonnes of capacity by the end of 2025 and further enhance the energy efficiency and product mix of Nutrien’s plants. Nutrien is also evaluating the potential for additional low-cost brownfield expansion and emissions reduction projects with a final investment decision expected over the next 12 months.

Last month, Nutrien announced it is evaluating its existing site at Geismar, Louisiana to build the world’s largest clean ammonia facility. The project would leverage low-cost natural gas, tidewater access to world markets, and high-quality carbon capture and sequestration infrastructure to serve growing demand in agricultural, industrial and emerging energy markets. The plant would have an annual production capacity of 1.2 million tonnes of clean ammonia and capture at least 90 percent of carbon dioxide (CO2) emissions, providing a meaningful step towards achieving the 2030 commitments set out in Nutrien’s Feeding the Future Plan.

Nutrien’s annual nitrogen sales volumes could increase to approximately 13.5 million tonnes by 2027 through the completion of inflight brownfield projects and additional growth projects under evaluation.

Source: Nutrien


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