Northern Plains Nitrogen Presents Update to Grand Forks City Council About Opening Fertilizer Plant in Grand Forks

(KNOX) – Representatives from Northern Plains Nitrogen presented an update to the Grand Forks City Council on Monday about opening a fertilizer plant in Grand Forks.

NPN gave the update as the city council gave preliminary approval to extend a letter of intent agreement with the company regarding industrial water supply and discharge at the proposed site. The extension would last from December 31st of this year to December 31st of next year.

Northern Plains Nitrogen CEO Clark Bailey says the goal is to start construction early next year, and commercial operation starting in 2030.

The project cost has decreased slightly from $2.56 billion to $2.37 billion. The plant would focus on producing granulated urea fertilizer, which would produce roughly 1 million tons annually.

Interest in the project has increased in recent months, as the closure of the Strait of Hormuz greatly slowed imports of fertilizer ingredients to the United States. The federal government has determined that the current demand for nitrogen fertilizer is “a national security issue.”

The financing of the project has not been confirmed yet, and the goal is to reach the final investment decision by early next year.

Northern Plains Nitrogen has reportedly raised $45 million in Schedule A shares and applied to receive support from the U.S. Department of Agriculture through grants.

NPN applied and was not approved for the $500 million FIELDS (Fertilizer Investment and Expansion for Long-term Domestic Supply) program.

Bailey says this possible plant would help with a current priority of the federal government. The country uses roughly 16 million tons of granulated urea annually, and 5 million tons of this amount is imported. North Dakota, South Dakota and Minnesota all take in roughly 3 million tons.

City Administrator Todd Feland says the city and NPN have not created a development agreement yet, as this needs to be established before the city can approve any site development for the plant. The development agreement can’t start until Northern Plains Nitrogen secures a project investor.