IFFCO Canada leaps ahead

The Government of Québec has authorized IFFCO Canada to move forward with the proposed fertilizer plant at Bécancour. The decree was adopted recently by the provincial cabinet upon recommendation by the Minister of Sustainable Development, Environment, Wildlife and Parks.

Adoption of the government decree marks an important step in project development, as the company is now authorized to proceed with the construction of the proposed fertilizer plant at Bécancour. In addition to sanctioning the go-ahead, the decree details the commitments to which IFFCO Canada has agreed, notably measures designed to protect and control air, water and soil quality, as well as requisite environmental monitoring and emergency measures.

“On behalf of IFFCO Canada, we wish to thank the Government of Québec, as well as all stakeholders for the diligence and rigour demonstrated during the environmental assessment of our project. We also wish to thank the host community for unstinted support throughout the entire process, which has contributed to our obtaining the decree,” stated Manish Gupta, Chief Executive Officer.

Since the incorporation of IFFCO Canada in July 2012, the project has progressed rapidly, successfully completing a number of important steps. The social and environmental assessment concluded with the tabling of an affirmative report by Bureau des audiences publiques sur l’environnement (BAPE) in January 2013, followed by a recommendation in favour of the project by the Ministry of Sustainable Development, Environment, Wildlife and Parks. Adoption of the decree marks the close of the social and environmental assessment process, and officially authorizes IFFCO Canada to proceed with the proposed fertilizer plant.

In January 2013, IFFCO Canada acquired the land on which the industrial complex is to be built. Strategically situated in Bécancour Port and Industrial Park, this central Québec location is served by land, rail and water, while providing ready access to markets across North America. Additionally, the deep water port facilities represent a clear competitive advantage for exporting production abroad, especially to markets in Europe.

This past January, IFFCO Canada retained the services of Ganotec Inc. to finalize project cost estimates and propose an engineering, procurement and construction (EPC) contract for the construction of the facility. Ganotec Inc. is a wholly owned subsidiary of Kiewit, one of North America’s largest construction companies which has many large projects to its credit in the industrial and petrochemical sectors. This new strategic collaborator brings to the table sound knowledge of the region backed by North America-wide construction expertise. Kiewit’s Ganotec is considered the principal contractor of choice for the EPC contract.

Maire Tecnimont of Italy has been selected as technology provider and integrator. Through their subsidiary Stamicarbon BV, urea licensing market leader, Maire Tecnimont will provide urea process technology. Through Tecnimont, another subsidiary, the group has been chosen as process engineering and equipment provider for Ganotec Inc. Ammonia process technology will be supplied by KBR, a US company with 70 years of experience in process design. KBR currently equips over half of the world’s ammonia production plants.

In January 2014, as part of its strategy to secure the required supply of natural gas, IFFCO Canada responded to a TransCanada PipeLines (TCPL) invitation to bid for transport capacity through an open season process. Readers will recall that natural gas is the primary raw material required for use in the urea production process at the future IFFCO Canada plant. Resource abundance and competitive pricing together proved determining factors in the company’s decision to locate in Québec.

“Our focus now is on project financing which, once finalized, will pave the way for construction of the industrial complex to commence. That said, work on the project continues to progress, the business environment remains favourable, and we are confident that the plant will be ready for commissioning in 2017,” Manish Gupta went on to add.

The new facility will be one of the largest urea production plants in North America, with an annual production capacity of between 1.3 and 1.6 million tonnes of granular urea destined for the fertilizer market and 760 000 tonnes of diesel exhaust fluid (DEF). The project cost is currently assessed at $1.6 billion, based on the most recent bankable feasibility study. La Coop fédérée, one of the project shareholders, has agreed to purchase some 500 000 tonnes of urea a year for distribution across the organization’s extensive network in Québec, Canada and a number of US states.

Courtesy: digitaljournal.com

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