India’s largest fertilizer cooperative IFFCO has taken a giant step this week in global fertilizer market as it has formally got the go ahead with the proposed fertilizer plant at Becancour, Quebec, Canada by the Government of Quebec.
The decree was adopted on March 26th by the provincial cabinet upon recommendation by the Minister of Sustainable Development, Environment, Wildlife and Parks, and published in today’s edition of the Official Gazette of Québec.
Talking to Indian Cooperative Dr. U S Awasthi expressed that “I am extremely happy and satisfied over the development and would like to thank the Government of Quebec and Canadian Government for trusting the caliber & strength of IFFCO”.
Dr Awasthi added “we are very thankful to the host communities for their full support throughout the process and wish the same in future. He further said that now its time to concentrate more towards project development and construction of the fertilizer plant. The plant is scheduled for commissioning by 2017.
“We will try our best to protect the environment by controlling air, water & soil quality of the area as we have done & shown in India with successfully running the oldest ammonia-urea plant at Kalol, Gujarat”, he said.
Since the incorporation of IFFCO Canada in July 2012, the project has progressed rapidly, successfully completing a number of important steps. The social and environmental assessment concluded with the tabling of an affirmative report by Bureau des audiences publiques sur l’environnement (BAPE) in January 2013, followed by a recommendation in favour of the project by the Ministry of Sustainable Development, Environment, Wildlife and Parks. Adoption of the decree marks the close of the social and environmental assessment process, and officially authorizes IFFCO Canada to proceed with the proposed fertilizer plant.
In January 2013, IFFCO Canada acquired the land on which the industrial complex is to be built. Strategically situated in Bécancour Port and Industrial Park, this central Québec location is served by land, rail and water, while providing ready access to markets across North America.
Additionally, the deep-water port facilities represent a clear competitive advantage for exporting production abroad, especially to markets in Europe.
This past January, IFFCO Canada retained the services of Ganotec Inc. to finalize project cost estimates and propose an engineering, procurement and construction (EPC) contract for the construction of the facility. Ganotec Inc. is a wholly owned subsidiary of Kiewit, one of NorthAmerica’s largest construction companies which has many large projects to its credit in the industrial and petrochemical sectors. This new strategic collaborator brings to the table sound knowledge of the region backed by North America-wide construction expertise. Kiewit’s Ganotec is considered the principal contractor of choice for the EPC contract.
Maire Tecnimont of Italy has been selected as technology provider and integrator. Through their subsidiary Stamicarbon BV, urea licensing market leader, Maire Tecnimont will provide urea process technology. Through Tecnimont, another subsidiary, the group has been chosen as process engineering and equipment provider for Ganotec Inc. Ammonia process technology will be supplied by KBR, a US company with 70 years of experience in process design. KBR currently equips over half of the world’s ammonia production plants.
In January 2014, as part of its strategy to secure the required supply of natural gas, IFFCO Canada responded to a Trans Canada Pipe Lines (TCPL) invitation to bid for transport capacity through an open season process. Readers will recall that natural gas is the primary raw material required for use in the urea production process at the future IFFCO Canada plant. Resource abundance and competitive pricing together proved determining factors in the company’s decision to locate in Québec.
“Our focus now is on project financing which, once finalized, will pave the way for construction of the industrial complex to commence. That said, work on the project continues to progress, the business environment remains favourable, and we are confident that the plant will be ready for commissioning in 2017,” Manish Gupta went on to add.
The new facility will be one of the largest urea production plants in North America, with an annual production capacity of between 1.3 and 1.6 million tonnes of granular urea destined for the fertilizer market and 760 000 tonnes of diesel exhaust fluid (DEF). The project cost is currently assessed at $1.6 billion, based on the most recent bankable feasibility study. La Coop fédérée, one of the project shareholders, has agreed to purchase some 500 000 tonnes of urea a year for distribution across the organization’s extensive network in Québec, Canada and a number of US states.