BioNitrogen secures property for urea plant
BioNitrogen Corp., a developer of revolutionary patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer, announced it has secured a 49-acre parcel of land to construct the company's inaugural plant in Lubbock, Texas.
BioNitrogen expects to complete the land purchase after concluding an Environmental Site Assessment (ESA). The company has already engaged X8 Engineering whom anticipates completion of the ESA no later than March 12, 2012.
BioNitrogen expects to begin construction of the plant after evaluating, obtaining and finalizing its financing and engineering options for the construction and commissioning, which it expects to complete in the coming weeks. The company anticipates that the total cost to construct the plant will be approximately $65 million.
The company's innovative, patent-pending technologies transform residual agricultural waste and other biomass materials into high-quality bulk urea (a white, crystalline solid containing 46 percent nitrogen), which are principally used in the agricultural industry as a crop fertilizer, and sold to both agricultural wholesalers and retailers.
The modular plant has a design capacity capable of manufacturing up to 15 tons of urea fertilizer per hour for a total annual production of up to approximately 124,200 tons per plant, which anticipates 20 days for equipment maintenance and upkeep.
The company estimates that the annual economic potential associated with the proposed Lubbock Plant could be as much as $77,128,000(1).
Additionally, the 49 acre land parcel at the proposed plant would allow the company to increase the size of the production facilities, which in turn is projected to double the proposed output capacity. The additional capacity would be used to produce Urea Ammonium Nitrate (UAN) as well as granular urea.
As previously announced on Feb. 2, 2012, the company entered into a Letter of Intent with United Suppliers for the purchase of up to 300,000 tons annually of urea in granular or prilled grade form. The binding agreement, currently under final negotiation between the two parties, will be for an initial term of three (3) years. BioNitrogen projects that the economic potential benefit could be as much as $558,900,000 USD (2).
Lubbock, Texas, was selected as the location for the first production facility because the site is close to the company's engineering and construction office also located in Lubbock. As a result of this proximity the company intends to utilize the proposed plant as BioNitrogen's primary research and development facility to develop and refine technological enhancements to the company's products and processes. The vision for the Lubbock site is consistent with the company's commitment to continually improve and enhance plant operations and production efficiencies.
"Given the inextricable link between food consumption, production and fertilizer demand and supply balances for the next 40 years, the importance of our inaugural plant in the USA cannot be overstated for both our national and international future customers and shareholders. Over the past month since our announcement to commercialize the company, we have received almost daily inquires of interest from around the world wanting to examine strategic partnerships and associated investment opportunities relating to our patent-pending nitrogen-based urea and fertilizer production facilities," Terry Collins, Ph.D., president and CEO of BioNitrogen, stated.