Genesis Fertilizers and Gunvor Pursuing Partnership to Secure Natural Gas Supply, DEF Offtake, and Carbon Credits Monetization

Strategic alignment would secure critical feedstock, product offtake, and sustainability value as Genesis Fertilizers advances toward a low-carbon production future in Western Canada

SASKATOON, SK, Aug. 26, 2025 /CNW/ - Genesis Fertilizers is pleased to announce the signing of a commercial Letter of Intent (LOI) with Gunvor USA LLC, one of the world's largest independent commodities trading houses, to jointly pursue three key agreements for Genesis Fertilizers' proposed nitrogen fertilizer production facility at Belle Plaine, SK (the Facility): a natural gas supply agreement, a diesel exhaust fluid (DEF) offtake agreement, and a carbon credits offtake agreement. This collaboration further advances Genesis Fertilizers' commitment to building a modern, low-carbon fertilizer facility that provides value across the supply chain—from global traders to Western Canadian farmers.

The three agreements currently in discussion to be finalized are intended to govern long-term strategic collaboration, including natural gas supply to the Facility, full offtake of the Facility's DEF product to Gunvor, and Gunvor's purchase of up to 100% of carbon credits generated through the Facility's carbon capture and sequestration technologies.

"This is a defining step in securing critical commercial components for the Genesis Fertilizers project," said Derek Penner, President and CEO of Genesis Fertilizers. "Gunvor brings exceptional market insight and global scale, and their participation is a strong validation of our integrated, sustainability-driven model."

Key Elements of the Proposed Agreements:

Natural Gas Supply Agreement:

• Secures natural gas feedstock from Gunvor for the Facility, enabling year-round production at scale.
• Encompasses approximately 23 million GJ per year from 2029, creating incremental demand for Canada natural resources and displacing imports.
• Ensures flexible, firm delivery supported by long-term transport arrangements.

Diesel Exhaust Fluid (DEF) Offtake Agreement:

• Gunvor to purchase 100% of the DEF volume produced by the Genesis facility annually (approx. 215,000 MT).
• DEF will be produced to international purity standards and delivered FOB via rail.

Carbon Credit Offtake Agreement:

• Gunvor to purchase up to 100% of carbon credits generated from Genesis's carbon capture and sequestration process.
• Represents approximately 682,000 MT per year of CO₂ credits.
• Designed to align with emerging regulatory regime and carbon markets.

Gunvor highlighted the alignment in values, stating: "Genesis Fertilizers represents the future of sustainable agri-input production. Our team is excited to collaborate on this transformational project and bring forward a supply chain anchored in reliability, transparency, and emissions reduction."

Enabling a Sustainable Ag Future

The Belle Plaine facility is being designed as one of the most modern and sustainable nitrogen fertilizer production sites in North America. Featuring an integrated carbon capture system and built to optimize product and energy efficiency, the project is expected to play a key role in supporting Canadian agriculture's low-emission future.
The Letter of Intent signed with Gunvor is a critical milestone as Genesis Fertilizers moves toward Final Investment Decision (FID), targeted in early 2026.

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 Gunvor Group
Gunvor Group is one of the world's largest independent commodities trading houses by trading volume, creating logistics solutions that safely and efficiently move physical energy from where it is sourced to where it is demanded most. With strategic investments in industrial infrastructure (refineries, pipelines, storage and terminals), Gunvor further generates sustainable value across the global supply chain for its customers. Gunvor trades in more than 100 countries with three main trading hubs in Geneva, Singapore, Dubai and Houston, along with other trading offices in Calgary, Stamford, London and Shanghai, supported by a network of more than 20 representative and other trading offices around the globe.

Advisory Regarding Forward-Looking Statements

This press 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, limited partners of Genesis Fertilizers or farmers may derive therefrom). In particular, but without limiting the foregoing, this press release contains forward-looking statements pertaining to: the entering into of the Natural Gas Supply Agreement, the Diesel Exhaust Fuel Offtake Agreement and the Carbon Credit Offtake agreement and their terms; purity standards for the Facility's DEF production; revenue stability for the Facility; the generation of CO₂ credits and the quantity thereof at the Facility as well as revenue derived thereform the construction of the Genesis Fertilizer's fertilizer plant; design options and use of latest technologies available for the fertilizer plant; the nature fertilizer plant's products and the benefits of technologies in producing those products; minimizing emissions from the fertilizer plant and sustainability; the existence and sustainability of any competitive advantage that Genesis Fertilizers may be able to offer; the FID date for the Facility as well as the commercial operations date of the fertilizer plant; 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; 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 Contact - Genesis Fertilizers: Jody Stadnyk, [phone], [email protected]