Genesis Fertilizers Limited Partnership ("Genesis Fertilizers") has solidified two strategic partnerships to further its vision of developing a low carbon-intensity fertilizer production facility. In collaboration with CARBONCO Pte. Ltd. ("CARBONCO"), a leading provider of decarbonization technology solutions and a subsidiary of DL E&C (KRX: 375500), and Whitecap Resources Inc. ("Whitecap"), a Canadian oil & liquids weighted growth company (TSX: WCP), Genesis Fertilizers plans to implement a cutting-edge carbon capture and sequestration (CCS) solution at its proposed facility in Belle Plaine, Saskatchewan, Canada.
These partnerships represent a critical milestone for Genesis Fertilizers' efforts to drive sustainable agriculture. CARBONCO is set to provide post-combustion carbon capture technology capable of capturing up to 1 million metric tonnes of CO2 annually. Whitecap's New Energy division plans to manage the transportation and permanent sequestration of CO2 emissions through its Belle Plaine Carbon Hub.
The expanded capacity of the proposed facility expects to produce over 1,128,000 metric tonnes per annum (MTPA) of ammonia and nitrogen-based fertilizers, including urea, urea ammonium sulfate (UAS), and diesel exhaust fluid (DEF) (based on current market mix expectations). The decision to increase capacity from 700,000 MTPA to over 1,128,000 MTPA aligns with North America's growing demand for low-carbon fertilizers and aims to enhance economies of scale, benefiting Genesis Fertilizers' Limited Partners (LPs) through reduced production costs, improved efficiency, and a broad product portfolio.
Jason Mann, President and CEO of Genesis Fertilizers, stated, "Our partnerships with CARBONCO and Whitecap are game-changing for the future of sustainable agriculture. Together, we're reducing emissions while ensuring farmers have access to a stable, low-carbon and competitive supply of nitrogen fertilizer for the future."
In addition to environmental benefits, the proposed Genesis Fertilizers project aims to deliver a significant economic impact. The proposed facility is expected to create over 1,500 jobs during construction and 180 long-term positions once operational. Furthermore, the project is also projected to inject millions of dollars into the local economy, providing stable demand for logistics, transportation, and maintenance services.
The Front-End Engineering Design (FEED) phase is scheduled to begin in the coming months, with commercial operations targeted to commence by 2029. Genesis Fertilizers will continue to provide updates on its progress, including additional technology partnerships and project milestones.
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