Genesis Fertilizers Achieves Major Project Milestone by Entering into FEED Agreement with DL E&C, Advancing Canada's Proposed Low-Carbon Fertilizer Facility
SASKATOON, SK, Nov. 21, 2024 /CNW/ - Genesis Fertilizers has signed a pivotal Front-End Engineering Design (FEED) agreement with DL Engineering & Construction (DL E&C), a South Korean global leader in engineering and construction. This agreement advances Genesis Fertilizers' plan to finance, design, and construct Canada's first proposed low-carbon nitrogen fertilizer facility, ensuring a reliable, stable supply for its farmer-owners.
DL E&C's expertise in world-class fertilizer plant design reinforces Genesis Fertilizers' commitment to excellence. Their successful completion of the Ma'aden Ammonia III project in Saudi Arabia, the largest commercial production capacity per train globally, exemplifies their ability to deliver complex projects on time and under budget, even during the challenges of the COVID era.
The FEED phase establishes the essential technical and design groundwork for safe and efficient facility construction. DL E&C is set to collaborate with Canada's PCL Construction to ensure quality, safety, and efficiency throughout preconstruction. Together, they aim to create a comprehensive blueprint that integrates advanced carbon capture technology, targeting the sequestration of up to 1 million metric tonnes of CO₂ annually.
"Our partnership with Genesis Fertilizers reflects our dedication to advancing sustainable innovation in construction," said Jae Ho Yoo, Chief Executive, Plant Division of DL E&C. "Leveraging our expertise in world-class fertilizer plant design, we are honoured to contribute to this transformative project for Canada's agricultural future."
"This FEED agreement is a monumental step in our journey to deliver sustainable, low-carbon fertilizer for Western Canadian farmers," said Jason Mann, CEO of Genesis Fertilizers. "Thanks to years of planning, and support from our farming community, we now have a clear path forward for the design of the facility. While there is still work to do to finance and construct a cutting-edge fertilizer plant, we are excited to collaborate with DL E&C and PCL Construction to make this vision a reality and bring lasting benefits to Canadian agriculture."
In addition to the FEED agreement, Genesis Fertilizers has achieved critical milestones that underscore its commitment to building a sustainable agricultural future, including:
- Securing land for the proposed facility at Belle Plaine, Saskatchewan.
- Gaining significant provincial government support.
- Appointing PwC as its financial advisor for the project and for government incentives.
- Awarding CARBONCO as the carbon capture technology provider
- Establishing a memorandum of understanding with Whitecap Resources Inc., for cutting-edge carbon sequestration solutions.
As a vertically integrated, farmer-owned initiative, Genesis Fertilizers intends to return profits directly to its farmer-owners and recognizes the critical role of farmers, whose support to date has driven this initiative forward to this critical stage. If fully financed and constructed, the Genesis Fertilizers plant will address the needs of Western Canadian farmers seeking a reliable, locally sourced nitrogen fertilizer. Establishing this facility in Saskatchewan aims to reduce dependency on imports while providing a sustainable, farmer-owned alternative to import, freight costs and leakage of profits outside of Canada.
The FEED phase is scheduled to begin this December, setting defined timelines for the project. With commercial operations targeted to commence by 2029, Genesis Fertilizers will provide regular updates as we work toward revolutionizing fertilizer production in Western Canada.
About Genesis Fertilizers
Genesis Fertilizers is proposing to finance, design and construct a new, highly efficient nitrogen fertilizer production and distribution system that serves today's modern farmer. This will be comprised of a central production facility constructed near low-cost raw materials serving a Western Canadian network of strategically located farmer-centric distribution centres. Genesis Fertilizers' is a privately held limited partnership, and its securities do not trade on any exchange.
About DL E&C
DL E&C is a leading Korean construction company who strives to take a leading role toward a sustainable future as a global developer. With 85 years of worldwide experience spanning over five continents in the field of oil & gas, refinery and petrochemical production facilities, DL E&C main principle to the world is to improve the value of life through mutual efforts and growth. DL E&C is a public limited liability company, and its securities are traded in Korea Exchange.
Advisory Regarding Forward-Looking Statements
This release contains certain information and statements ("forward-looking statements") that constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future results or events, are based upon internal plans, intentions, current expectations and reasonable beliefs, and are subject to risks and uncertainties that may cause actual results or events to differ materially from those indicated or suggested therein. All statements other than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are typically, but not always, identified by words such as "anticipate", "assume", "estimate", "expect", "intend", "forecast", "continue", "contemplate", "propose", "may", "can", "will", "if", "to be", "aim", "should", "could", "would", "believe", "plan", "target", "objective", "project", "potential", "outlook", "subject to", "working toward" and similar or other expressions indicating or suggesting future results or events.
Forward-looking statements are not promises of future outcomes. There is no assurance that the results or events indicated or suggested by the forward-looking statements, or the plans, intentions, expectations or beliefs contained therein or upon which they are based, are correct or will in fact occur or be realized (or if they do, what benefits Genesis Fertilizers or limited partners of Genesis Fertilizers may derive therefrom). In particular, but without limiting the foregoing, this release contains forward-looking statements pertaining to: the construction of the Genesis Fertilizer's fertilizer plant; design options and use of latest technologies available for the fertilizer plant; use of carbon capture and the amount of CO2 potentially sequestered; use of decarbonization technologies; any support or incentives, financial or otherwise, that Genesis Fertilizers may receive from any levels of government or any tax incentives or government programs that may be available to Genesis Fertilizers; and the benefits of the foregoing on the investment of limited partners in Genesis Fertilizers.
The forward-looking statements contained herein reflect management's current views, but the assessments and assumptions upon which they are based may prove to be incorrect. Although Genesis Fertilizers believes that its underlying assessments and assumptions are reasonable based on currently available information, undue reliance should not be placed on forward-looking statements, which are inherently uncertain, depend upon the accuracy of such assessments and assumptions, and are subject to known and unknown risks, uncertainties and other factors, both general and specific, many of which are beyond Genesis Fertilizers' control, that may cause actual results or events to differ materially from those indicated or suggested in the forward-looking statements. As Genesis Fertilizers is currently in the capital raising phase of the project, such risks and uncertainties are numerous and include, but are not limited to, access to the significant amounts of required capital and debt financing for construction and initial operation of the fertilizer plant and distribution facilities; general economic, business and industry conditions; the state of the economy and the agricultural crop input business; business prospects and opportunities; variance of Genesis Fertilizers' actual capital costs versus projections and estimates, operating costs and economic returns from those anticipated; the availability of government grants and programs; and risks related to the sourcing of feedstock and the manufacturing of nitrogen fertilizer.
This press release is not a solicitation to invest in Genesis Fertilizers.
SOURCE Genesis Fertilizers LP
Media Contacts: Genesis Fertilizers, Breanne Baker, (587) 433-8177, [email protected]; DL E&C: Hyeon Ju Ahn, +82-2-369-4740, [email protected]
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