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By
Julian Atchison on November 11, 2022
USDA to fund fertilizer production
expansion 
The US Department of Agriculture (USDA)
is looking to
support small-scale, distributed ammonia & fertilizer production in
the US via a new funding program. The Fertilizer Production
Expansion Fund aims to help US farmers secure access to cheap,
lower-emissions fertilizer, as well as shielding the agricultural
industry from price shocks. New & existing projects will be funded to
spur competition, with the focus on smaller players – applicants must
not hold a market share equal to or greater than fourth largest in the
US (across a range of functions & nutrient products).
Applications remain open until the end of 2022 for federal support
to projects that “significantly increase American-made fertilizer
production to spur competition and combat price hikes”. The USDA is
seeking to support fertilizer production projects that demonstrate the
following aspects:
• Independent, and
outside the orbit of dominant fertilizer suppliers. Because the
program’s goal is to increase competition, market share restrictions
apply.
• Made in America.
Products must be produced by companies operating in the U.S. or its
territories, to create good-paying jobs at home, and reduce the
reliance on potentially unstable, inconsistent foreign supplies.
• Innovative.
Techniques will improve fertilizer production methods and
efficient-use technologies to jumpstart the next generation of
fertilizers and nutrient alternatives.
• Sustainable.
Ideally, products will reduce the greenhouse gas impact of
transportation, production and use through renewable energy sources,
feedstocks and formulations, incentivizing greater precision in
fertilizer use.
• Farmer-focused. Like
other Commodity Credit Corporation investments, a driving factor is
providing support and opportunities for U.S. agricultural commodity
producers.
Project aspects the USDA is
looking to fund via a new grant program. From “Biden-Harris
Administration Invites Applications for Grants Under the Fertilizer
Production Expansion Program”, 30 Sept 2022
$500 million in total is on offer through
the program, with a minimum grant of $1 million (max. $100 million)
over a five year term. Grant funds can be used to cover a whole range
of project costs:
• Construction of a new facility or
purchase of an existing facility for purposes of expanding capacity
or increasing output, including the purchase of land;
• Pre-development costs including, but not limited to, engineering
and other professional fees;
• Working capital to support expanded capacity or increased outputs;
• Modernizing or expanding an existing facility, including expansion
and modifications to existing buildings and construction of new
buildings at existing facilities;
• Purchasing new, or modernizing existing processing and
manufacturing equipment;
• Customizing, and installing equipment, devices, and technology
that improves processing functions, worker conditions, or safety;
• Modernizing, customizing, and installing climate‐smart equipment
that reduces greenhouse gas emissions, increases fertilizer use
efficiency, improves air and water quality, or meets one or more of
USDA’s climate action goals;
• Ensuring compliance with packaging and labeling requirements under
applicable law (including sealing, packaging, boxing, labeling,
conveying, and product moving equipment);
• Ensuring compliance with occupational and other safety
requirements under applicable law;
• Engaging in workforce recruitment, training, apprenticeships, and
retention to ensure expansion projects will be adequately staffed
and crewed and offer opportunities to workers.
How grant funds may be used. From
USDA Fertilizer Production Expansion Program Overview, 30 Sept
2022
The program sits alongside recent,
significant policy developments in the US:
funding for regional hydrogen hubs, a draft national hydrogen strategy,
a
$1 billion loan to Monolith Materials, funding for
other significant ammonia energy projects, and – of course – the
Inflation Reduction Act.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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