Proposed Fertilizer Plant Still In Play

The proposed Eastern Montana Fertilizer Plant near Culbertson is still very much a possibility, according to John Mues of Cyan H2.

Mues said an off-take marketing agreement has been approved by a conglomerate’s business management and legal departments. Now, that group’s board of directors must decide to move forward during its next meeting in June.

“The project has never been in better shape,” Mues said. “The word we have right now is that it will be approved.”

He explained though that some adjustments need to still take place. One challenge is that because the time to reach the agreement has been lengthy, some investors might have less interest now in the project than they expressed in the past. Mues said another challenge is the philosophy for public financing under the Trump administration is different than it was under the Biden administration.

Cost of the project is estimated at $1.8 billion. The original plan was that the funding would come from commercial debt, public debt and private equity.

Mues said it will be a test of Montana’s current congressional delegation of whether they want the nation to use a Montana product or to continue importing Russian fertilizer. The hope is Montana’s delegation works to secure public financing or has suggestions for alternatives.

Mues explains that the project will not only benefit northeastern Montana but the entire state. Montana State University instructors Dr. Paul Gannon and Brooke Lahneman have each provided lessons about the benefits of such a project.

The unapproved draft expects $220 million in sales over a 15-year period. The first delivery of fertilizer is scheduled for 2029.

It’s believed that the project would create 2,000 construction jobs at its peak and about 200 operational positions. “That’s direct jobs not in-direct jobs that will help the region,” Mues said.

CyanH2 is a Montana veteran owned business. Four principles are veterans including two West Point graduates and two U.S. Naval graduates.