BioNitrogen Corp., a developer of revolutionary patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer, has signed a Letter of Intent to construct the company's second planned fertilizer plant at the Levelland Industrial Rail Park, Levelland, Texas.
The LOI is between The Levelland Economic Development Corporation (LEDC) and BioNitrogen and summarizes the understanding that BioNitrogen plans to construct a new manufacturing plant to use local organic matter as an input to produce urea fertilizer for the region.
The cost of the plant is estimated to be $65 million and will employ at least 35 full-time employees once fully operational.
The LOI outlines that the LEDC will convey to the Company Lot Number 1 of the Levelland Industrial Rail Park in Levelland, Texas (approximately 24.5 acres) for the purchase price of $850,000.00 (market value), being equivalent to $35,000.00 per acre x 24.5 acres. Based on the projected capital investment and employment levels, the LEDC will provide the land at no cost provided that all due diligence is met in accordance with LEDC requirements.
During the coming weeks, the LEDC will work with BioNitrogen to finalize all due diligence requirements including the review of the business plan, technical feasibility, market analysis, financing models, operations and compliance with all state and federal regulatory requirements.
Both parties understand that time is of the essence and are working to complete a definitive contract and all necessary and supporting documentation in the coming weeks. The LEDC also will work with BioNitrogen to examine further possible economic incentives.
"The economic development and benefit to our local community and farmers is very exciting, and we are grateful for the opportunity and look forward to assisting you in locating your fertilizer plant in our community." states Mr. Chris Roberts, President of the LEDC.
Terry Collins, Ph.D., president and CEO of BioNitrogen adds "Roberts and his team and been very helpful in assisting us develop our second plant here in Texas. Our team is excited to get to work and move through the due diligence and complete all the necessary paperwork in the coming days and weeks. This is a very exciting next step for our company and its valued shareholders".