AMERICAN FALLS, Idaho — For a community hungry for higher-paying jobs, news of the proposed Magnida fertilizer plant project reaching a new milestone was well-received.
“Obviously, I’m excited,” said Kristen Jensen, executive director of the Great Rift Business Development Organization in Idaho’s Power County. “It’s a big step forward for them to have selected a contractor.”
Magnida CEO Ric Sorbo said KBR Inc. has been selected as the engineering, procurement and construction contractor for the estimated $2.5 billion project. Sorbo said an agreement with KBR was reached in July.
Magnida can now redouble all its efforts on securing additional investors for the American Falls project.
“It provides a sign of progress,” Sorbo said. “It’s a clear indication that we’re moving forward.”
Magnida is hoping to build a fertilizer plant near the existing Lamb-Weston potato processing plant west of American Falls. The plant would use natural gas to produce nitrogen fertilizer in what is called “greenfield” technology.
Sorbo said KBR does the bulk of fertilizer plant construction in the U.S.
Jensen said representatives from KBR visited Power County to get a feel for the community, and she said the company felt good about the experience.
“The county is very supportive of it,” Jensen said about the project.
Since taking over the project, which was initially proposed as an electrical generation facility back in 2008, Magnida has focused on fertilizer production at the site. When the initial company, Refined Energy Holdings, folded, the project was taken over by I Squared Capital, a New York City-based firm founded by former executives of Morgan Stanley in 2013, according to www.ammoniaindustry.com.
Since the fertilizer plant was first proposed, the plans called for the creation of 175 jobs at the plant upon completion.
Sorbo said the plant has the land, water and state-issued air permits needed for operation, and now the only obstacle is to secure all the needed financial backing. He added that there is a lack of competition for greenfield fertilizer developments, which bodes well for Magnida.
“It’s a very complex project,” Sorbo said. “It always takes longer than we imagined, but we remain optimistic.”
The Magnida executive also said he has appreciated all the support received from both Power County and the state of Idaho. “It’s nice to be in a place you’re wanted,” Sorbo said.
Sorbo said the investment picture should be clear by the end of this year, and if it is secured, an announcement would be made early in 2016.
“I look forward to them announcing, ‘Yes, we have the funding,’” Jensen said.
Source: Idaho State Journal