Pacific Green Fertilizer Corp

[Alana Fekety]

TcnicasReunidas S.A. (TR; Madrid, Spain) has signed a contract with the green fertilizer company Atlas Agro (AA) for the development of a zero-carbon fertilizer plant, Pacific Green Fertilizer (PGF), in the Northwest of the United States, close to Richland, a city in Benton County (Washington).

It will have the capacity to produce 650,000 tons per year of Calcium Ammonium Nitrate and will be composed of the following main units: Ammonia, Nitric Acid, Ammonium Nitrate, Calcium Ammonium Nitrate, Calcium Nitrate, Electrolyzers and Air Separation.

The Richland City Council approved a 10-year, $20 million property tax break for Atlas Agro, the third such break given in the past year to companies promising to build green manufacturing plants in the city.

The 2022 Legislature adopted the program, which allows cities and counties to waive some property taxes for businesses that invest at least $800,000 in new facilities and create at least 25 new jobs that pay family wages at the outset.

Council members said they were thrilled Atlas is seriously considering making Richland the home for its proposed Pacific Green Fertilizer Plant. The plant will produce 700,000 tons of carbon-free fertilizer annually from water, air, limestone and vast amounts of electricity.

It also waived $6.7 million in property taxes for French nuclear fuels manufacturer Framatome, for a two-phased investment in fourth-general nuclear fuel production at its Richland campus, 2101 Horn Rapids Road.

Nutrien looks for companies that have a similar go-to-market approach, with partnerships ultimately resulting in bringing added value to their collective customers. Boyer and PCA have demonstrated through consistent growth, unique fertilizer and service offerings, and a loyal customer base, that they will be an integral part of Nutrien Ag Solutions.

Eric Krienert from the Moss Adams Stockton office provided tax, estate, and advisory services as part of the transaction. Matthew Ottone from Ottone Leach & Ray provided legal services as part of the transaction.

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In the Northwest, climate change is expected to cause increased temperatures, drought, extreme events like wildfires, floods, and heat waves, and changes in precipitation. As a result, agriculture in the region is likely to experience reduced productivity and increased soil erosion. Cover crops, or crops grown to enhance soil health and water quality between cash-crop plantings, have the potential to mitigate some of the impacts of climate change in Northwest agricultural systems.

Erosion is a major concern in Northwest agriculture. When fields are left fallow (uncovered), wind and water can erode soil and cause increased nutrient, pesticide, and fertilizer runoff, leaving soil less fertile and waterways polluted. Uncovered soil is also more vulnerable to extreme events like floods and high winds. By stabilizing and enriching the soil with organic matter, cover crops enhance soil resiliency to extreme weather events and help protect water quality, thereby making agriculture more sustainable and reducing environmental impacts.

Cover cropping is not a new practice. For centuries, farmers planted cover crops to improve soil quality and reduce erosion. In the 20th century, the development of effective herbicides and pesticides caused many farmers to transition away from cover crops. However, the link between soil health and environmental benefits has renewed interest in the practice in recent years.

Cover cropping is not a cure-all for climate change in Northwest agriculture. However, widespread adoption could mitigate 10% of agricultural greenhouse gas emissions. Cover cropping also includes many other benefits that could increase agricultural resilience to climate change and have long-term economic advantages for farmers.

Store carbon in the soil to mitigate climate change: By removing carbon from the air and storing it in roots, soil, and aboveground stems and leaves, cover crops increase soil organic carbon and mitigate some greenhouse gases.

Reduce soil erosion and runoff: When fields are left fallow and have little crop residue at or near the surface, less water is able to infiltrate through the surface of the soil. Cover crops penetrate the soil surface, increasing water infiltration and decreasing soil erosion and runoff. The deep tap roots of some cover crops can also reduce or mitigate soil compaction.

Reduce weeds, pests, and disease: Cover crops can outcompete weeds by filling in the empty space in between rows or cropping cycles. Some cover crop species harbor beneficial insects or directly deter crop pests, thereby reducing the need for pesticides, which are costly and detrimental to the environment.

Provide habitat and forage: Cover crops can provide habitat and food for pollinators and wildlife, particularly small mammals and birds, and high-quality forage for livestock. By reducing soil erosion, cover crops can lead to improved water quality.

Cover cropping has many benefits, but there are also challenges. The financial benefits of cover cropping may take years to realize, whereas the implementation cost is immediate. However, there are programs available for farmers interested in pursuing cover cropping, and often improved yield is noted after just one year of cover crops.

Cover crops that leave heavy plant residue may increase susceptibility to soil insects, nematodes, and some diseases. Farmers must ensure that they are planting the right cover crop for their climate, soils, and objectives.

In some dryland cropping systems, farmers may be concerned about cover crops competing with cash crops for water and nutrients. However, depending on the year and cover crop species, farmers in the inland Northwest have planted cover crops in dryland systems and have noted improved soil health and few impacts to water availability for cash crops, if appropriately timed according to wet and dry seasons.

USDA is investing $3.1 billion in 141 selected projects under Partnerships for Climate-Smart Commodities. Learn more about the national effort: Partnerships for Climate-Smart Commodities Overview Brochure (PDF, 2.3 MB). Details on tentatively-selected projects are provided below. Finalized projects are viewable on our project dashboard.

This project will build markets and provide funding to farmers via outcome-based contracts for the reduction and removal of carbon dioxide through the adoption of new climate-smart practices. The remaining project funding will support farmer enrollment assistance, carbon quantification, technical assistance support, measurement, reporting and verification, and underserved farmer outreach and enrollment. Monitoring for this project is planned to include remote sensing, field inspections, farmer operational records, field audits and soil sampling. They plan to account for and track both nitrous oxide (N2O) emission reductions and soil carbon sequestration separately at the field level. The project also plans to reserve 20% of contracts for underserved populations supported by dedicated conservation agronomist technical assistance.

This project will utilize incentive payments to thousands of producers across 15 states to adopt and implement climate-smart agriculture (CSA) practices, like cover crops, reduced tillage and nutrient management, and develop markets. Part of the project will include engagement of ADM's 5,000 underserved producers to promote CSA opportunities, resulting in significant greenhouse gas (GHG) reductions and removals. Project plans to provide cost-share on a per acre basis to reduce costs for early adopting end users. ADM plans to transition climate-smart products to be sold a premium per bushel, allowing climate-smart practices to be funded with the supply chain.

This project will build markets for climate-smart cotton and provide technical and financial assistance to over 1,000 U.S. cotton farmers, including underserved cotton producers, to advance adoption of climate-smart practices on more than 1 million acres, producing millions of bales of Climate-Smart Cotton over five years, and demonstrating major carbon dioxide equivalent (CO2e) reductions and millions of dollars of economic benefits to farmers. Project plans to provide participants up to three years of financial assistance for climate-smart practices like nutrient management and cover crops. To enhance market opportunities for participants, partners plan to leverage and enhance their existing relationships within the apparel industry.

This project will build climate-smart dairy markets and provide financial incentives for dairy producers to adopt climate-smart manure management practices to reduce methane emissions, leveraging matching funding from non-federal sources. Financial incentives are planned on a per-cow basis to producers to implement vermifiltration, evaporative liquid waste processing systems, subsurface drip fertigation using liquid manure, weeping walls, aerated static compost piles, and others. On average producers will likely receive incentives that account for 30 to 50 percent of their total costs of CSAF practice adoption, while also receiving a premium for the climate-smart milk. This project plans to utilize partnerships designed to market climate-smart milk for a higher premium and conduct a consumer market messaging analysis to determine the feasibility and effectiveness of approaches to best promote climate-smart milk in multiple market channels.

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