Key Takeaways:
- USDA Grant: AdvanSix awarded a $12 million USDA grant under the Fertilizer Production Expansion Program to boost domestic fertilizer production.
- SUSTAIN Initiative: The grant will support AdvanSix’s SUSTAIN initiative, which aims to increase ammonium sulfate production while maintaining energy efficiency and reducing emissions.
- Economic Growth: The expansion will support over 800 jobs in central Virginia and add 200,000 tons of granular ammonium sulfate to the U.S. market annually.
- Sustainability Focus: The initiative emphasizes sustainable production practices, ensuring that increased output does not come at the cost of environmental impact.
- Supply Chain Strengthening: This investment will help reduce reliance on imported fertilizers, enhancing supply chain resilience for U.S. agriculture.
AdvanSix (NYSE: ASIX), a prominent diversified chemistry company, has been awarded a grant of approximately $12 million from the U.S. Department of Agriculture (USDA). The funding, provided through the Fertilizer Production Expansion Program (FPEP), supports the expansion of domestic fertilizer production, bolstering supply chains and creating economic opportunities for American businesses.
USDA Grant to Support Domestic Fertilizer Expansion
The USDA’s grant is part of a larger effort to enhance the domestic production of fertilizers, reducing reliance on imports and strengthening the U.S. agricultural supply chain. Mike Hamilton, Vice President and Business Director of Plant Nutrients at AdvanSix, expressed the company’s gratitude for the grant. “We’re grateful to the USDA for recognizing our potential with this grant and the ability we have to make a difference for farmers across the country,” said Hamilton. “This funding will support AdvanSix’s strategy to increase our production capacity of premium grade product and make investments that will have true material impact in helping to nourish the world.”
SUSTAIN Initiative to Benefit from USDA Funding
The grant will support AdvanSix’s Sustainable U.S. Sulfate to Accelerate Increased Nutrition (SUSTAIN) initiative, a multi-year investment program aimed at expanding the production of ammonium sulfate fertilizer at its Hopewell, Virginia facility. The initiative is designed to increase production capacity without a net increase in energy consumption or emissions, focusing on sustainability alongside growth in fertilizer output. The Hopewell facility, with a history spanning nearly 100 years, remains a key producer of nitrogen-based fertilizers for the U.S. market.
AdvanSix’s ammonium sulfate is a key ingredient in dry bulk fertilizer blends, used extensively across North America for sulfur nutrition in agriculture. The SUSTAIN initiative is expected to increase production by approximately 200,000 tons per year, primarily through enhanced granular conversion and improved logistics capabilities for both rail and truck transportation.
Economic and Environmental Impact
The expansion is expected to provide a significant boost to the local economy, supporting over 800 jobs in central Virginia and reinforcing the company’s position as a key supplier of American-made fertilizers. The Hopewell facility’s ammonium sulfate is a critical component of agricultural products in the U.S., ensuring a reliable domestic source of nitrogen-based fertilizers.
AdvanSix’s focus on sustainability is integral to the SUSTAIN initiative. The projects under this initiative aim to meet growing market demand for high-quality sulfur nutrition while maintaining environmental stewardship at the core of its operations. The USDA grant will be allocated as AdvanSix meets specific project milestones, supplementing the company’s own financial investments and resources to continue expanding fertilizer production.
