Genesis Fertilizers and Gunvor Partner on Natural Gas, DEF, and Carbon Credits
- The facility will use approximately 23 million GJ of natural gas annually from 2029.
- Gunvor will purchase 100% of the DEF produced, about 215,000 MT annually.
- Gunvor will buy up to 100% of carbon credits, around 682,000 MT of CO₂ credits per year.
- Final Investment Decision is targeted for early 2026.
Partnership Overview
Genesis Fertilizers has signed a Letter of Intent with Gunvor USA LLC to establish three key agreements for a proposed nitrogen fertilizer facility in Belle Plaine, SK. The agreements focus on securing natural gas supply, diesel exhaust fluid (DEF) offtake, and carbon credits monetization.
Natural Gas Supply
The facility will require approximately 23 million GJ of natural gas annually starting in 2029. This agreement aims to ensure a stable and flexible supply, supported by long-term transport arrangements.
DEF Offtake Agreement
Gunvor will purchase 100% of the DEF produced by the facility, estimated at 215,000 MT annually. The DEF will meet international purity standards and be delivered FOB via rail.
Carbon Credits
Gunvor plans to buy up to 100% of the carbon credits generated from the facility's carbon capture and sequestration process, representing about 682,000 MT of CO₂ credits per year. This aligns with emerging regulatory regimes and carbon markets.
Project Timeline
The Letter of Intent marks a significant milestone as Genesis Fertilizers moves toward a Final Investment Decision, targeted for early 2026. The facility is designed to be a modern, low-carbon production site, supporting a sustainable future for Canadian agriculture.
Source: Centalion