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Dakota Gasification and OCI N.V. form fertilizer JV

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World Fertilizer,

Dakota Gasification Co. has announced that it has signed a definitive agreement with OCI N.V. to sell nitrogen fertilizers and diesel exhaust fluid (DEF) in North America through a newly formed 50:50 joint venture (JV), N-7 LLC.

The venture will market and distribute over 4.5 million t of fertilizer product from Dakota Gas’ Beulah facility, and two OCI facilities: Iowa Fertilizer Co. and OCI Partners. In addition to this, the JV will market any imported product from OCI’s operations outside North America.

The CEO of Dakota Gas, Paul Sukut, said: “OCI is a great fit for a partnership with Dakota Gas, which we expect will provide many benefits for marketing the fertilizers produced at the Great Plains Synfuels Plant. Through N-7, we will be able to better serve the North Dakota market and the local agricultural economy, and it makes good business sense as well. We have a large customer base in the 250-mile radius around the Synfuels Plant, and achieving transportation and selling cost synergies through N-7 enables us to more efficiently serve the local farming community and be a dependable local source of fertilizer for area farmers.”

The CEO of OCI N.V., Nassef Sawiris, added: “We are delighted to join forces with Dakota Gasification Co. The joint venture allows us to extend our reach throughout North America, expand our product offering and customer base, and better serve our existing customers.”

Expected benefits for Dakota Gas include the following:

  • Ability to broaden customer base and relationships.
  • Enhanced utilisation of truck and rail logistics infrastructure.
  • Freight cost optimisation.
  • Improved access to optimal distribution points.
  • Lower marketing administrative costs.
  • Broadened fertilizer distribution footprint to better align with the Basin Electric membership footprint.
  • Potential future operational synergies.

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