How many dollars worth of natural gas in anhydrous ammonia

[Hopperbin]

This next paragraph was taken from FNA's prject n website.

As fracking drives down natural gas prices, it will also drive down fertilizer prices. Right now, with natural gas prices at about $2.50 per thousand cubic feet, it takes about $82 of natural gas to make a ton of anhydrous ammonia used in the process, which sells for about $800 a ton.

I now calculate and the cost of natural gas comes to 4.6 cents per lb on N. Of course 46 0 0 would be much higher. Natural gas is not the only cost but wondering how it will play out if its worth while to invest in some anhydrous infrastructure on the farm. Or just pay the local supplier to supply it. Instead of contemplating switching to 46 0 0.

[cottonpicken]

Another question,did fna ever talk about vertical
integration by buying a gas producing company,there
are some seriously cheap companies out.

[Hopperbin]

There was some talk and hints by the salemen hired to promote and selling the the seed money shares but you know how that one goes, trust them as far as you can throw them. Makes only sense to do it though. What N is selling for and what you pay after delivery could be much different. I would think a bunch of capped Natural gas wells waiting for a market should be really cheap.

[Hopperbin]

Stantec is engaged to proceed with Bankable Feasibility Study for ProjectN as of Jan 31. Not sure how long that is going to take, hopefully very soon.

[bobofthenorth]

I think the current multiplier for nat gas is around 35x the mmBTU price. The rest of the costs are largely labour and capital because fresh air and nat gas are the only inputs. And the same argument applies to urea production. They reclaim the CO2 that comes off the NH3 reaction and use that and ammonia as inputs to the urea train.

Any of you guys that are serious about the eff'n eh project should at least get your local Cargill guy to take you on a tour of Belle Plain. The chemistry isn't complex - its just the required scale of production that is scary.

[cottonpicken]

Hopper,want to go half sees.

http://www.tradekey.com/product_view/id/2668021.htm

[SASKFARMER3]

Hopper how many of the initial did you buy, I
stuck with 5000 on initial. Now I also think their
are a few reasonable gas companies out their.

[Hopperbin]

This equipment takes melted urea as the main nitrogen source. During the granulation process of fertilizer production, melted urea is mixed with raw solid materials by coating onto those materials. In fact, melted urea plays several roles during fertilizer production. Firstly, it functions as a kind of raw material. Secondly, it acts as a liquid to join in granulating process. Finally, it can produce heat to make balling and drying process easy.
Its annual output ranges from 30kt to 200kt.

Equiptment sounds like a scam bud but what do I know. :-))

[Hopperbin]

I stuck with one cause I think its extremely high risk with not much more possible benefits than the latter share offering. More interested in the latter share offering if it gets there.
The share offering will need to be attractive to investors and competitive with the other new fertilizer plants that are going to be built otherwise no investors will go for it. One share gives me a foot in the door and no skin off my ass. So just looking at the investment side of it, just my opinion.

[Hopperbin]

Seed Capital Unit Report: as of Jan 31
We are 18 members away from 1,600 goal is 2,500
We are 45 units away from 6,900 goal is 10,000
We are now over 7 million acres

7 million acres at 70lbs N per acre equals near a half million tons of 46.
7 million acres is also 11,000 square miles or 105 miles squared in area. Still small when looking at square miles covered so far.

[bucket]

The only guys getting rich on this is FNA and Stantec.

Yara at belle plaine is going to twin their facility.

And FNA will still be wondering how to scam some more money out of this.

When NatGas went to high to make fertilizer a bunch of plants were mothballed. Not that they were inefficient just not having the ability to cover the capital and production costs.

That's where FNA should do their research to setting up a plant. Buy a closed plant and either re-commission it or move it to a new site.

BTW have they chosen a site yet? That's the first step to saying it might be a go.

[Hopperbin]

Some info.

Price of stock as of closing today compared to exactly ten years ago from today.

Stantec 4.81 Times
Agrium 6.51 Times
Potash Corp. 7.96 times
Mosaic a bit of a dog at 3.75 times
Yara International 7.26 times

So if you invested exactly 10 years ago and unloaded them today you would have x times your money. Not too bad.

How many times is your farm worth today compared to 10 years ago? Berreta farms exempted, so far they kick butt.