Genesis Fertilizers Selects Saskatchewan for Proposed Urea Fertilizer Plant

Company currently raising equity and debt capital to facilitate construction of the 700,000 MT urea plant along with six distribution facilities

SASKATOON, SK, Jan. 11, 2023 /CNW/ - Genesis Fertilizers Limited Partnership ("Genesis Fertilizers") has chosen Belle Plaine, Saskatchewan as the site for its proposed majority farmer-owned 700,000 MT urea fertilizer plant. The decision was taken after holding discussions with senior representatives from the Government of Saskatchewan over the past two years.

Genesis Fertilizers is proceeding to secure land to accommodate the building of this facility, which also contemplates a network of distribution facilities across the Prairies.

"Farmers across Canada, together with our management team, have been looking for the right opportunity to move this project forward," said Jason Mann, President, Genesis Fertilizers. "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, but 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, Vice President, Business Development, Genesis Fertilizers.

The company 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," said Barrie Mann, Vice President, Investor Relations, Genesis Fertilizers.

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 www.genesisfertilizers.com

SOURCE Genesis Fertilizers

Genesis Fertilizers Contacts: Jason Mann, President and Chief Executive Officer, [phone], [email protected]; Barrie Mann, Vice President, Investor Relations, [phone], [email protected]; Terry Drabiuk, Vice President Business Development, [phone], [email protected]