BioNitrogen signs agreement with United Suppliers

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BioNitrogen Corporation signed a supply agreement with United Suppliers, Inc. for the production of urea fertilizer for its future plant in Florida.

United Suppliers is owned by 735 locally-controlled ag retailers and provides crop nutrients such as urea fertilizer to its owners in 20 states from east of the Rockies to west of the Mississippi River plus three of the western provinces in Canada.

This will be the first plant supply agreement under the framework agreement recently announced with United Suppliers. The supply agreement contract will provide United Suppliers with the plant production of approximately 124,200 short tons per year for twenty-five (25) years. The contract also includes a take-or-pay minimum equal to 100,000 short tons per year for the initial five (5) years.

The plant will be strategically located to source biomass feedstock. The location, in Hardee County, Florida, will be beneficial to the local community, the sourcing of biomass and the logistics of getting the urea fertilizer to market. The State of Florida is one of the largest producers of tree trimmings, a feedstock that is year-round and not subject to severe declines in production due to weather. On the contrary, bad weather events in Florida, such as heavy rains or hurricanes, can produce higher volumes of biomass feedstock.

Matt Carstens, United Suppliers vice president of crop nutrients, stated, “We are extremely excited about working with the new management of BioNitrogen to achieve a long-term customer-supplier relationship focused on solutions that benefit both parties. This agreement for the initial plant provides a framework for building plants in the most strategic areas for our nitrogen fertilizer customers based on BioNitrogen’s sourcing of biomass raw material. It will enhance our ability to obtain US-manufactured fertilizer from BioNitrogen.”

Carlos Contreras, president and CEO of BioNitrogen, stated, “This supply agreement with such an important fertilizer supplier in the U.S. solidifies our mission and the credibility of our management team. We are building the initial plant where biomass is easily sourced, reducing our feedstock costs and risks. The initial engineering work for the Texas plants has been transferred over to this Florida plant. This more rapidly advances us towards the milestone of providing domestically produced urea fertilizer made from U.S. biomass to North American farmers.”

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