CHS and OCP Plan $450 Million Investment in 1 Million Ton Phosphate Fertilizer Plant

en.Wedoany.com Reported - On August 26, CHS and OCP North America proposed forming a joint venture to build a phosphate-based fertilizer production facility at Cornerstone Energy Park in Waggaman, Louisiana, USA. The project is expected to involve an investment of approximately $450 million, with a designed annual capacity exceeding 1 million tons. Detailed engineering design is currently underway, and project and financing approvals are still pending.

Planned products include monoammonium phosphate and diammonium phosphate. Under the supply arrangement agreed by both parties, OCP Group will supply merchant-grade phosphoric acid to the plant. The site will feature dedicated phosphoric acid storage tanks with secondary containment, and will leverage the park's existing ammonia, sulfur, and other raw material storage infrastructure. Finished fertilizer will be stored in covered warehouses before being distributed to major U.S. agricultural regions through CHS's cooperative and farmer-owned retail network as well as OCP North America's existing channels.

The project also includes new port and material handling facilities. Current plans call for a new barge dock east of the existing wharf, equipped with conveyors for loading finished product onto vessels. The existing liquid dock will be upgraded to accommodate larger vessels, and limited dredging may be required in certain waterways. Once the plant is operational, finished phosphate fertilizer is planned to be transported by barge, rail, and truck, utilizing the Mississippi River shipping system for distribution to U.S. agricultural regions.

Approximately 40% of U.S. phosphate-based fertilizer demand currently relies on imports. CHS estimates that once the project achieves an annual capacity of over 1 million tons, it could reduce U.S. dependence on imported phosphate fertilizer by up to about 48%. According to CHS data, the last new phosphate fertilizer production facility in North America was completed in 1984. If this project completes approvals and construction, it would become the first such production facility added in the region in over 40 years.

The project is expected to create approximately 60 permanent jobs and 500 construction jobs in Jefferson Parish, with a total impact of about 924 direct and support jobs over the project period. The two parties have also submitted a funding application for the project under the U.S. Department of Agriculture's Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) program. The program provides up to $500 million in funding in 2026, with individual competitive cost-share projects eligible to apply for between $15 million and $150 million.

The project remains in the detailed engineering design and approval phase. CHS and OCP North America have stated that construction will begin once project and funding approvals are completed, with an expected construction period of up to 24 months. The official start date for construction and the planned production date have not yet been confirmed at this stage.