ND offering loans for fertilizer plants
North Dakota’s Development Fund has opened loan applications for companies looking to build a fertilizer facility in the state.
"We have one, pretty small, fertilizer plant, which is Dakota Gasification," said State Commerce Director Josh Teigen. He said that plant manufactures only a small fraction of what the state's farmers need.
"What that means is North Dakota farmers are at the end of the supply chain," Teigen said. "Our farmers are paying some of the highest prices in all of the United States for fertilizer."
Teigen said one of the most common ways to make fertilizer is with natural gas. And he said North Dakota has an abundant supply of natural gas.
"We have a huge need to develop a plant here, to reduce some of that supply chain risk for our farmers, and help lower the cost," Teigen said.
Up to $65 million Is available in loan funds for the development and construction of a fertilizer facility. Teigen said he does expect interest in it.
"The biggest factor is usually the up-front engineering cost, which can be anywhere from $50 million to $100 million," Teigen said. "If you have to go raise that in the private market, it's incredibly expensive. And that's where North Dakota has come in and said, 'We'll help augment some of that risk,' because this is a huge value-add for the state."
Companies are asked to submit their proposals by Aug. 13th.