Agrium Redwater Upgrade643 Community Advisory Panel October 18, 2012
Purpose Keep key Stakeholders informed of opportunities being investigated at Agrium Share information about the project being considered at the Redwater facility Begin community engagement Receive CAP feedback CULTIVATING PERFORMANCE. DELIVERING VALUE.
Background CULTIVATING PERFORMANCE. DELIVERING VALUE. Redwater Fertilizer Operations (RFO) opened its doors in the late 1960’s and is now Canada’s largest fertilizer complex Three of the four main plant nutrients farmers need are produced at RFO (Nitrogen, Phosphate and Sulphur) With the global population growth and demand for food increasing Agrium is growing too as it tries to help feed the world
Project Scope Over the last couple months Agrium has been looking at opportunities to grow within North America Currently looking at a 500 metric tonnes per day upgrade of RFO Urea facility (current production is approximately 2100 metric tonnes per day) Most of the work will be done in the Urea Plant, with some work being performed to upgrade some utilities that support Urea (steam, electricity, material loading and shipping) CULTIVATING PERFORMANCE. DELIVERING VALUE.
The Redwater site today Urea Granulation Storage Building
Why we are considering this project Since shale gas, natural gas prices in North America are now more attractive compared to the world North America imports about half of the Nitrogen fertilizers it uses RFO opportunity is to convert Ammonia to Urea to increase value of the product we produce CULTIVATING PERFORMANCE. DELIVERING VALUE.
Project Schedule if we proceed Preliminary engineering is underway Hope to order long delivery items early in 2013 Planned turnaround in 2013 is expected to be used to complete some tie ins Final completion and startup of the project would be the summer of 2015 CULTIVATING PERFORMANCE. DELIVERING VALUE.
Environmental Considerations Agrium is looking at upgrades to current equipment that will minimize environmental impacts New equipment is in the scope to purify water and increase water reuse on site, thus decreasing required water intake from the river Targeting no additional emissions even though production is increasing by 20-25% There will be a significant reduction of CO2 emissions at RFO because one of the two main ingredients in Urea is CO2. The more Urea made the less CO2 emitted at RFO CULTIVATING PERFORMANCE. DELIVERING VALUE.
Community Considerations The work will be nearly invisible Some temporary trailers will be set up for the engineering and construction workers At the peak 100-150 workers will be added to the RFO site for 1-2 month period Almost all of the work will be completed within the existing foot print of the current Urea Plant Coordinate with NorthWest to minimize construction traffic impact CULTIVATING PERFORMANCE. DELIVERING VALUE.
Next Steps Communicate to stakeholders Continue to work with Environment and Sustainable Resource Development (ESRD) to obtain necessary regulatory approvals Continue engineering Obtain board approval for ordering long delivery equipment CULTIVATING PERFORMANCE. DELIVERING VALUE.