Morocco’s OCP Group and US agricultural cooperative CHS plan to invest up to $450 million in a Louisiana phosphate fertilizer plant with annual capacity exceeding 1 million metric tons, the companies said on Wednesday.
The proposed joint venture would build and operate the plant at Cornerstone Energy Park in Waggaman, near New Orleans.
The companies said it would be the first facility of its kind built in the United States since 1984.
The project remains subject to regulatory, financing and other approvals. Construction is expected to take up to 24 months after approval, although the companies did not disclose a start date, their respective ownership stakes or how much each would contribute.
OCP would supply phosphoric acid to the plant, while OCP North America and CHS would distribute the finished fertilizer through networks serving U.S. farmers, cooperatives and agricultural retailers.
The location within an existing industrial park on the Mississippi River would provide access to raw materials, utilities and inland transport links.
The United States imports about 40% of the phosphate fertilizer needed to meet domestic demand as its phosphate reserves decline, according to the companies.
The proposed capacity could reduce U.S. dependence on imported phosphate fertilizer by more than 48%, they said.
The estimate assumes the plant receives approval, is completed and reaches its planned production capacity.
OCP North America CEO Kevin Kimm said the companies aimed to build “lasting infrastructure that strengthens U.S. food security” and provides farmers with a reliable domestic fertilizer supply.
CHS CEO Jay Debertin said the investment would bring fertilizer production “closer to the American farmer” and the cooperative distribution network.
The plant is expected to create about 500 construction jobs and 60 permanent positions in Jefferson Parish. The companies estimated its wider employment impact at 924 direct and service-support jobs.
CHS and OCP have applied for potential funding under the U.S. Department of Agriculture’s Fertilizer Investment and Expansion for Long-Term Domestic Supply program.
The program was established to support independent fertilizer projects, increase domestic production and competition, and reduce the exposure of U.S. farmers to disruptions in international supply chains.
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