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Rollins Touts New Fertilizer Projects
Chris Clayton 5/19 4:03 PM
OMAHA (DTN) -- CF Industries should see permitting completed on its $4 billion Blue Point low-carbon ammonia plant in Louisiana within the next 45 days, Trump administration officials announced Tuesday. In their efforts to show the Trump administration is focused on bringing down fertilizer prices, Agriculture Secretary Brooke Rollins led another press event on Tuesday at USDA's headquarters in Washington, D.C., to tout the permitting push for what will be considered "the world's largest low-carbon ammonia production facility," led by CF Industries. Rollins has now held multiple events in the past month at USDA in which she presses the case that industry problems such as skyrocketing fertilizer prices preceded the Trump administration, such as the start of the Ukrainian war during Biden's term. She, other Cabinet members and Republicans in Congress then each weigh in on what they are doing to bring down prices. "The cost of urea, potash, MAP, DAP, ammonia, and UAN all rose swiftly … in 2021 and for the rest of the Biden administration remained at roughly 55% higher than at the beginning of the Biden administration," Rollins said. "Obviously, in 2025 the Trump administration had already begun efforts to lower fertilizer prices." As of last week, retail anhydrous ammonia prices averaged $1,118 a ton, up 30% from mid-February -- before the war in Iran began. Urea prices, at $865 a ton, are up 44%, according to DTN Fertilizer Trends. OFFICIALS SAY THEY ARE SPEEDING UP PERMITS On Blue Point, Adam Tell, the assistant secretary for the Army for Civil Works, said, "this project was mired in Green New Deal red tape," but the Trump administration expects to announce a decision on it within 45 days. Tell also said the Army Corps of Engineers in the past few days has issued a memorandum to all 39 districts that fertilizer projects should not be deterred by red tape. "We expect to get this project online, as well as many others, very soon," Tell said. EPA Administrator Lee Zeldin also said permits needed for the Clean Air Act or Clean Water Act are also being accelerated. "Bringing down costs on farms has been a very important priority of President Trump, specifically with his engagement with EPA," Zeldin said. "He understands that our farmers have inherited so many hurdles by our predecessors, and he wants those obstacles to be blazed through instantly." Zeldin also reiterated he plans to move forward with a rule that would end tractor deratements because of emission restrictions. Energy Secretary Chris Wright said the U.S. is the "hydrocarbon superpower of the world" and the administration is doing everything it can to reverse policies of the Biden administration that increased costs, mainly by lowering greenhouse gas emissions. "You heard about this fabulous Blue project in Louisana that will become the world's largest ammonia fertilizer production plant?" Wright said. "The Biden administration wanted it to have carbon capture – wanted it to fit their climate crazy agenda – and it stalled that plant that should be feeding American farms today. But that permit will be issued soon, and that plant will be up." BLUE POINT STATUS CF Industries had stated in its earnings call on May 7 that the company was ready to start construction on the Blue Point project this year "once applicable permits have been received," company officials said. Blue Point is a joint venture between CF and two Japanese companies. Blue Point should come online sometime in late 2029 and will add more than 1.5 million metric tons of ammonia capacity once completed. Still, there are open questions about how much ammonia will go to fertilizer. Contrary to Wright's comments, CF officials also have continued to indicate they expect to see a premium for producing low-carbon ammonia at Blue Point, "which will be 95% or more decarbonized," company officials said in the earnings call. The company plans to sink 2.3 million metric tons of carbon dioxide at a well in Louisiana. Just last month CF Industries also entered into an agreement with PepsiCo to provide low-carbon urea ammonium nitrate that will be available to U.S. farmers who grow potatoes for PepsiCo's Frito-Lay brands. That will help PepsiCo to lower the carbon footprint of its potato supply chain. CF's Japanese partners in the joint venture, JERA and Mitsui, plan to import low-carbon ammonia from Blue Point to co-fire with coal to lower emissions at their power plants. CF Industries CEO Christopher Bohn, responding to a question in the May 7 earnings call, noted Blue Point's location in Louisiana and the ability to tap low-cost natural gas as an input will give CF a strong financial incentive to either send more fertilizer to the Midwest or export it. "So what we see in place there is just an increased return profile and really, I think, if anything, the conflict is shedding a light on the strength of our strategy, being very intentional where we build and expand our assets here in North America that allow us not only low-cost inputs but allow us to be able to move product throughout the world, whether it be export or up into the Midwest where it's required," Bohn said. EXAMINING FPEP PROJECTS USDA also has been examining the Biden administration's Fertilizer Production Expansion Program (FPEP), which offered grants to smaller companies to build out fertilizer capacity. "FPEP was originally conceived with a very good thought in mind and that is to reshore, onshore our fertilizer production here in America," Rollins said. Still, Rollins said FPEP focused too much on climate change rather than fertilizer production. Of 121 projects announced by the Biden administration, which began grants in 2023, only eight had moved to completion. Rollins said 90 projects "were actually lacking agreements," though most projects were announced late in 2024 and the Trump administration froze grants in early 2025. "Those projects now that were stalled because of climate requirements are now coming back online. So, you can hear a little bit more about that too in the coming weeks we will be assisting the higher impact awardees with project completion, putting them on 'Trump speed.'" Rollins pointed to an $80 million grant to Atlas Agro, a Brazilian-based company, that plans to build a $1.5 billion nitrogen fertilizer facility in Washington state. Speaking of the Atlas Agro project, Rollins said, "We expect construction to begin this year." That project has not gotten off the ground and was also partially delayed because the Trump administration canceled funding for the Pacific Northwest Hydrogen Hub that was supposed to incentivize low-carbon renewable energy, including the "green" fertilizer project. States have sued the Department of Energy for canceling the grants. Rollins also said some smaller projects funded by FPEP are still moving forward, such as an organic fertilizer company in Iowa that should have a ribbon cutting later this summer. Still, Rollins said the FPEP projects and other fertilizer projects will lead to more than 2 million tons of new fertilizer capacity and cover 30 million acres. Wright also said the Energy Department has also issued a loan under the Energy Dominance Finance Office for a gasification in plant in Indiana that will produce ammonia fertilizer. Another project in Michigan will expand domestic potash production as well. Rollins said USDA is searching for an economist who would lead a team focused entirely on farm inputs. She pointed to a U.S. Senate hearing last week that stressed pricing transparency and possibly legislation that would require USDA to track fertilizer prices. LAWMAKERS SAY THEY ARE WORKING ON FERTILIZER ISSUES Republican lawmakers also joined Cabinet officials and weighed in. Sen John Hoeven, R-N.D., again touted USDA's launch of the National Proving Grounds Network for AgTech initiative being funded in North Dakota that will focus on precision agriculture. "Precision ag is saving on how much fertilizer and chemicals our farmers have to apply right now. It's going to be better tomorrow, and it's going to be better in the future," Hoeven said. Sen. Roger Marshall, R-Kansas, said lawmakers have been working on fertilizer bills for more than five years. He said one bill he introduced with Sen. Amy Klobuchar, D-Minn., would provide loan guarantees of up to $100 million for fertilizer projects. At the moment, the Senate is still working to draft its version of the farm bill, which could include provisions about fertilizer prices and funding. While the event was focused on expanding domestic fertilizer production, Marshall also highlighted the need to remove countervailing duties on phosphate fertilizer from Morocco. House Agriculture Committee Chairman Glenn "GT" Thompson, R-Pa., praised the "all hands on deck" approach of the Trump administration. "At the end of the day we are going to be less reliant on foreign sources," he said. FERTILIZER EXPANSION CHALLENGES DTN last week highlighted some of the hurdles facing companies trying to build new nitrogen plants. While permits are an issue, financing remains the biggest challenge for smaller companies looking to compete. See, "Fertilizer Expansion Gains Momentum, But Finance, Competition Hurdles Remain," https://www.dtnpf.com/… Chris Clayton can be reached at Chris.Clayton@dtn.com Follow him on social platform X @ChrisClaytonDTN (c) Copyright 2026 DTN, LLC. All rights reserved. |
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