Carl Casale, president and chief executive officer, CHS Inc., announced that the company has made a separate decision against moving forward with construction of a proposed fertilizer plant at Spiritwood, N.D.
"Our long-term goal has always been to add value for CHS owners through investment in the nitrogen fertilizer manufacturing space. To that end, we've continued to look at a variety of options, including the Spiritwood project," he said. "Ultimately, we determined that the construction cost, water supply challenges, overall risk profile and time required for the Spiritwood project had changed significantly since it was first considered. As a result, we concluded we couldn't achieve the level of returns needed to justify the increased costs and risks.
"We deeply appreciate the tremendous support and assistance from the Jamestown and Spiritwood communities, North Dakota's governor, elected officials and state agencies and organizations like the North Dakota Farmers Union; and other government leaders who have supported us through our due diligence process."
Casale noted that CHS has been a committed North Dakota business and neighbor since its 1931 founding and looks forward to a bright future that includes other investments in the state.
Given the dynamic market for nitrogen fertilizer manufacturing and distribution, investing in CF Nitrogen creates access to more immediate benefits to CHS owners and customers than a four-year plant construction window, Casale said.
An investment in CF Nitrogen enables CHS to serve its entire customer base through geographically diversified production and multiple transportation modes – including truck, rail and barge – that leverages the CHS distribution system and risk management expertise, he said.