OCP and CHS plan to build Louisiana phosphate plant

The proposed US phosphate plant would be the first of its kind in more than 40 years.

Its construction will depend on both funding approval and project-related permissions. A funding application has, however, already been submitted to the US Department of Agriculture through its Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) programme, according to CHS.

The joint venture (JV) was announced by CEOs of both companies at a Louisiana ceremony on 26th August, alongside US Secretary of Agriculture Brooke Rollins and Deputy Secretary Stephen Vaden. Louisiana Governor Jeff Landry was also present, as was Faris Derrij, the chair and CEO of OCP Nutricrops.

The two companies plan to build the $450 million plant at Cornerstone Energy Park in Waggaman, Louisiana. CHS expects construction to take around 24 months to complete, with a potential start-up date of 2028, although this is contingent on securing funding and the granting of permissions.

The project’s announcement coincides with a major US government push to reduce fertilizer import reliance by expanding domestic production via the FIELDS initiative.  The US currently imports around 40% of its phosphate fertilizers to meet farmer demand. The new plant could potentially reduce this import dependency by almost half, according to CHS.

Production will not rely on domestic or imported supplies of phosphate rock and sulphuric acid, as OCP Group will directly supply phosphoric acid to the plant. The plant’s exact phosphate fertilizer production mix has not been disclosed.

Finished fertilizers will be distributed by both CHS and OCP North America. CHS currently supplies crop nutrient products to cooperatives, retailers and farmers across the United States through its extensive wholesale and retail network. The plant’s expected Waggaman location offers access to raw materials and the ability to transport products via the Mississippi River system.

“This is an exciting moment for American agriculture,” said Jay Debertin, president and CEO of CHS. “As a farmer-owned cooperative, we exist to help farmers succeed. Together with OCP North America, we have the opportunity to build the first phosphate fertilizer plant in the US in more than 40 years. This investment has the potential to create more value for our owners by bringing fertilizer production closer to the American farmer and the cooperative network.”

“This project represents a milestone in OCP North America’s commitment to serving American agriculture,” added Kevin Kimm, CEO of OCP North America. “Together with CHS, we aim to build lasting infrastructure that strengthens U.S. food security and delivers a reliable, domestically produced supply of the crop nutrients American farmers need.” 

The announcement follows the US government’s recent temporary suspension of countervailing duties (CVDs) on Moroccan phosphate fertilizer imports. OCP has since resumed shipments to the US, with Moroccan phosphate arrivals increasing following the lifting of the suspension.

OCP North America and OCP Nutricrops are both fully owned subsidiaries of OCP Group.