The Intersection of Energy, Water and Economic Development

BY HEATHER SYVERSON

The Northern Plains Nitrogen fertilizer production facility planned for Grand Forks, N.D., is moving forward. The next step for the $2.5 billion project is the value engineering process, which involves groups of engineers from around the world working together to make a project as functional and cost-efficient as possible. The front-end engineering design (FEED) process will follow.

When it is operational, NPN will include an ammonia plant, as well as urea and urea-ammonium-nitrate (UAN) production facilities. “There are three key elements for a nitrogen fertilizer facility: air, water and natural gas,” says Calvin Coey, NPN project manager. “Favorable energy prices make this project viable, as 80 percent of the input cost is related to natural gas.”

The plant will use 80,000 million British thermal units of natural gas per day, which is expected to help reduce natural gas flaring in North Dakota.

The NPN facility will be located near the Grand Forks wastewater treatment plant so it can use wastewater effluent from the treatment process. Advanced Engineering and Environmental Services Inc. (AE2S), an engineering consulting firm that specializes in water projects, has been working with NPN and Grand Forks on the project since 2013.

“The fertilizer production process is heavily dependent on access to water,” says Shawn Gaddie, AE2S nexus division manager. “NPN is a perfect illustration of how water intersects with the energy sector and creates economic development. During peak construction, the plant is expected to employ 2,000 people. After the facility is operational, an estimated 170 full-time jobs will be created.”

NPN is currently looking for additional investors to make the proposed plant a reality. “We have acquired the necessary permits and we’ve had engineers working on making the plant a reality for nearly two years,” Coey says. “The last piece of the puzzle is funding. We’re excited about this project and look forward to benefiting the city of Grand Forks with our presence.”

In December, the Grand Forks City Council unanimously approved an extension on the water agreement with NPN through the end of 2016, allowing more time for the project to take off.

The project plans were developed after a North Dakota State University study found conditions in the Northern Plains are favorable for the construction and operation of a nitrogen fertilizer facility. The study identified key market conditions such as the natural gas reserves in North Dakota, which would provide a reliable regional supply of fertilizer for farmers while reducing the U.S.’s dependence on imports. Grand Forks was selected as the location for the plant because of its access to the current and planned natural gas pipelines in the region, water availability and its existing rail and truck infrastructure. PB

Heather Syverson Communications Coordinator AE2S heather.syverson@AE2S.com