Northern Lights, Agrium sign MOU for long-term low-cost feedstock
newswire.ca
CALGARY, July 19 /CNW/ - Synenco Energy Inc., Managing Partner of the
Northern Lights Partnership, today announced the signing of a Memorandum of
Understanding with Agrium Inc. to sell certain products from the Northern
Lights Upgrader proposed for Sturgeon County, Alberta to Agrium's neighbouring
Redwater Nitrogen Fertilizer Operations.
Under the terms of the MOU, hydrogen, nitrogen, sulphur and carbon
dioxide produced from asphaltenes in the Upgrader's gasification complex will
be used in Agrium's Redwater facility. Hydrogen and nitrogen will be sold to
Agrium for use in anhydrous ammonia production, resulting in a substantial
reduction in Agrium's consumption of natural gas. Sulphur and carbon dioxide
will be transferred to Agrium for use in the production of ammonium sulphate
and urea fertilizers.
"The Northern Lights Partnership and Agrium both recognize the economic
and operational benefits of working together - confirming that industrial
cooperation is more than just a concept in Alberta's Industrial Heartland,"
said Michael Supple, Executive Chairman and CEO for Synenco Energy. "This MOU
further validates the selection of Sturgeon County as home of the Northern
Lights Upgrader and the viability of the gasification of asphaltenes to
enhance Project return, ultimately benefiting our shareholders. We look
forward to the inclusion of additional industry players in the vision of a
meaningful and economically attractive network for hydrogen, carbon dioxide,
nitrogen, sulphur, steam, electric power and the processing of asphaltenes."
"We are excited about the opportunity to capitalize on the unique Alberta
oil sands resources, including obtaining a new, stable, long-term, low-cost
source of raw materials for our Redwater nitrogen, phosphate and sulphate
facility," said Mike Wilson, Agrium President and CEO. "We believe this
project is an excellent example of how we can work with industry partners to
take low-grade by-product hydrocarbons and add value for the environment and
local economy. This project also illustrates our continued focus on enhancing
Agrium's competitive cost position."
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