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From left: Canadian Ambassador to South Korea Tamara Mawhinney, Jason Mann, CEO of Genesis Fertilizers, and Yoo Jae-ho, chief executive of DL E&C's plant division, pose for a photo after signing a contract for a fertilizer plant project at the Canadian Embassy in Seoul on Wednesday. (DL E&C) |
In a step toward sustainable agriculture, Canadian fertilizer company Genesis Fertilizers has signed a $35 million front-end engineering design, or FEED, contract with South Korea's DL Engineering & Construction to develop a low-carbon nitrogen fertilizer plant in Saskatchewan.
Genesis Fertilizers CEO Jason Mann highlighted the plant’s innovative approach, emphasizing its role in global food security.
“We capture 95 percent of the CO2 emissions, making this one of the world's cleanest ammonia plants using the Haber-Bosch process,” Mann said during an interview with The Korea Herald, after a business agreement signing ceremony with DL E&C at the Canadian Embassy in Seoul on Wednesday.
The FEED phase, starting this December, will see DL E&C collaborating with Canada’s PCL Construction to ensure quality, safety and efficiency during preconstruction.
The project, expected to be completed by 2026, will integrate cutting-edge carbon capture and storage technology from DL E&C’s subsidiary, Carbonco, with the plant's commercial operations targeted for 2029.
The plant aims to sequester up to 1 million metric tons of carbon dioxide annually, injecting the captured carbon deep underground into saline aquifers, permanently reducing environmental impact.
The project also introduces a unique business model that directly benefits farmers, according to the CEO.
"Our investors who are farmers pay market price for the fertilizer they purchase and receive dividends at year-end," Mann explained. "The use of low-carbon fertilizer could further yield premium prices for crops like wheat and corn, aligning with the ESG goals of food companies and this creates a positive cycle across the agricultural supply chain."
In addition to producing nitrogen fertilizer, the facility will manufacture diesel exhaust fluid, a critical additive for reducing emissions from diesel engines.
Meanwhile, the announcement of eco-friendly policy initiatives in North America has fueled a surge in new plant orders for sustainable projects in recent years. Notably, under Bill C-59, introduced by the Canadian government in June, Genesis Fertilizers' plant qualified for tax credits, providing a boost to its development.
When asked about the potential impact of a new Trump administration, the CEO expressed confidence in the company’s resilience.
"I am aware of the uncertainty surrounding future policies, but our business model is built to withstand political changes," he said. Mann highlighted that many food companies in North America and Europe have established their own ESG targets, driven by stakeholder expectations rather than government mandates, ensuring sustained demand for low-carbon products.
"We also expect to benefit from the plant's strategic location near the US border, which reduces freight costs. Fertilizers can move across the border without tariffs, so such proximity positions us competitively in the US market, particularly for regions close to the plant."
Looking ahead, Mann expressed optimism about broader collaboration with Korean firms, citing Canada’s resource-rich market as a prime opportunity.
“Canada should be a net exporter of nitrogen fertilizer globally. We have low-cost gas, a relatively stable government and stable taxes,” he said, noting the potential for Korean expertise to play a pivotal role in resource development.
