CHS, OCP launches US$450M fertilizer joint venture to strengthen US phosphate supply
The proposed plant is expected to produce more than 1 million metric tonnes of phosphate-based fertilizer annually, creating a substantial new source of domestically manufactured crop nutrients for American farmers.
USA – CHS Inc. has partnered with OCP North America, a subsidiary of Morocco’s global phosphate leader OCP Group, to establish a joint venture aimed at building a major phosphate-based fertilizer manufacturing plant in Waggaman, Louisiana.
The proposed US$450 million facility, situated within the Cornerstone Energy Park along the Mississippi River, represents the first domestic phosphate fertilizer production plant constructed in North America since 1984.
The strategic joint venture will have the capacity to produce over one million metric tonnes of finished phosphate fertilizer annually once fully operational.
Under the partnership structure, OCP Group will supply the required raw phosphoric acid feedstock from its global operations, leveraging its extensive mining and processing capabilities.
Finished crop nutrients will be divided equally between the partners and distributed across American growing regions via CHS’s extensive farmer-owned cooperative supply network and OCP North America’s commercial marketing infrastructure.
The initiative addresses a critical vulnerability in the US agricultural sector, which currently relies on imports for roughly 40% of its phosphate fertilizer needs due to aging domestic infrastructure and declining regional production.
In connection with the proposed joint venture, the OCP Group will supply phosphoric acid to the facility, drawing on its global phosphate expertise and resources.
Finished fertilizer products will be distributed through both OCP North America and CHS, which serves cooperatives, retailers and farmers across the United States through its extensive wholesale and retail crop nutrients network.
In addition to enhancing national supply chain resilience and food security, the project is expected to deliver significant economic benefits to Jefferson Parish, Louisiana.
The new fertilizer plant’s expected location within the Cornerstone Energy Park in Waggaman will ensure access to raw materials and the ability to transport products via the Mississippi River system, the companies said.
Development and construction of the facility will generate approximately 500 temporary construction jobs over an estimated 24-month build timeline, ultimately yielding around 60 permanent high-impact operational roles and supporting over 900 direct and secondary regional jobs.
The partners have also submitted funding applications under the US Department of Agriculture’s (USDA’s) Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) program to accelerate domestic agricultural infrastructure development further.
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