Genesis Fertilizers Selects Saskatchewan for Proposed Urea Fertilizer Plant
“Farmers across Canada, together with our management team, have been looking for the right opportunity to move this project forward” stated Jason Mann, Genesis Fertilizers’ President, “The Saskatchewan Government’s commitment to creating a competitive business environment with a strong suite of incentives will support the agriculture sector and help this project address the challenge of high fertilizer prices.” In addition to reducing the net cost farmers pay for their fertilizers, Genesis Fertilizers intends to also mitigate supply issues and help address ongoing food security concerns.
Genesis Fertilizers was founded on a business model whereby farmers will not only be customers of the proposed new fertilizer plant, they will also be the majority owners. “This project has been a long time in the making, and the way all the parties have come together to move it to the next stage is amazing,” said Terry Drabiuk, Genesis Fertilizers’ VP Business Development.
Genesis Fertilizers is currently in the process of raising equity and debt capital to facilitate the engineering and construction of the 700,000 MT urea plant along with six distribution facilities. The estimated $1.7 billion project will, if constructed, generate over 5,000 man-years of employment during the design and engineer phase combined with the estimated 32-month construction period. The ongoing operations would support over 130 full time jobs when the proposed plant begins producing urea fertilizer. Financial spin off effects during and after construction are expected to be significant for all of Western Canada which includes fabrication, services, transportation and ongoing tax revenues.
“The Government of Saskatchewan has made it a priority to create a competitive business environment that supports major projects such as the Genesis Fertilizer urea facility,” Trade and Export Development Minister Jeremy Harrison said. “This new facility near Belle Plaine, will undoubtedly benefit the people of Saskatchewan, creating more than 100 jobs and support farmers, producers, and related business owners. We look forward to continuing to work with Genesis towards completion of this project.”
“Canadian farmers will be the real winners with Genesis Fertilizers positioned to move forward. Whether from B.C., the Prairies, or Eastern Canada, if this project is completed, being a farmer-investor will help farming operations manage their fertilizer costs, supply availability and ultimately keep industry profits local”, added Barrie Mann, Genesis Fertilizers’ VP Investor Relations. Genesis Fertilizers has significant work ahead in the capital raise and engineering
design process to move the project to the construction phase, however choosing the site and gaining support of the province of Saskatchewan is a significant milestone.
John Lloyd, a Rosetown, Saskatchewan area farmer and Genesis Fertilizer investor, who also took advantage of the option to lock in an offtake agreement for the amount of urea fertilizer that he uses annually directly from the proposed plant, summed it up from a producer’s perspective: “There is no reason farmers can’t own a fertilizer plant; we use urea every year and we use a lot of it, why not go direct to farm? This will be a game changer for current and future generations”.
Genesis Fertilizers Limits Partnership
Genesis Fertilizers is proposing to finance, design and construct a new, highly efficient urea production and distribution system that serves today’s modern farmer. One central production facility constructed near low-cost raw materials serving a Western Canadian network of strategically located farmer centric SuperCenters. Genesis Fertilizer’s is a privately held limited partnership and its securities do not trade on any exchange. For more information, visit genesisfertilizers.com.
Genesis Fertilizers Contacts:
President and Chief Executive Officer
Vice President Investor Relations
Vice President Business Development
Advisory Regarding Forward-Looking Statements
In the interest of providing the limited partners of Genesis Fertilizers Limited Partnership (“Genesis Fertilizers”) information regarding Genesis Fertilizers, this news 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, expectations and 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”, “estimate”, “expect”, “intend”, “forecast”, “continue”, “contemplate”, “propose”, “may”, “will”, “should”, “believe”, “plan”, “target”, “objective”, “project”, “potential” 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 may derive therefrom). In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to: the construction of the fertilizer plant; securing land for its location; financial incentives to be received from the Government of Saskatchewan; the construction of the distribution facilities and the number thereof, anticipated benefits to the limited partners of Genesis Fertilizers; prospective employment matters relating to the construction and operation of fertilizer plant; anticipated ability of Genesis Fertilizers to reduce fertilizer costs; fertilizer supply chain issue mitigation, majority ownership of the proposed fertilizer plant by Canadian farmers; project construction cost, availability of low cost raw materials, and benefits to Genesis Fertilizers stakeholders and future generations generally. With respect to the forward-looking statements contained in this news release, Genesis Fertilizers has assessed material factors and made assumptions regarding, among other things: the availability of equity capital; the availability of debt financing at acceptable rates; commodity prices and currency exchange rates; the ability to successfully construct the fertilizer plant and the distribution facilities and the availability of materials and service providers therefor; operational matters with respect to the proposed plant and distribution facilities, all of which are currently in the planning stage; the timely receipt of required regulatory approvals; the access, economic, regulatory and physical limitations to which Genesis Fertilizers may be subject from time to time; and the impact of industry competition.
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 and distribution facilities; 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; and risks related to the sourcing of feedstock and the manufacturing of urea fertilizer.
This press release is not a solicitation to invest in Genesis Fertilizers.