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Helping farmers raise healthy, profitable crops CHS ... CHS fertilizer plant at ... which will be...

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In September 2014, the CHS Board of Directors approved the construction of a multi-billion-dollar nitrogen fertilizer manufacturing plant to be built in Spiritwood, N.D. This plant will supply the region’s farmers with enhanced supplies of crop nutrients essential to growing corn, wheat and other crops. As a good corporate citizen with a heritage of stewardship in North Dakota, CHS is pursuing this project with a strong focus on safety, environmental stewardship and community investment. Fertilizer plays a key role in helping to feed the world’s growing population. There is significant need for nitrogen fertilizers within a 200-mile radius of the plant site. That need continues to grow as U.S. corn production moves northward. Having a local, domestic supplier will reduce dependence on imported fertilizer and provide farmers in this region with a reliable supply of fertilizer when they need it most. In addition to helping area farmers, the plant will help strengthen the regional economy. Designed for safety and efficiency The CHS fertilizer plant at Spiritwood, N.D., will employ state-of-the-art safety and operational technologies – including features that will help reduce emissions – and will be a leader in process efficiency. The plant will: Operate continuously 24 hours a day, 365 days a year Produce three types of fertilizers: anhydrous ammonia, urea and urea ammonia nitrate (UAN) Produce diesel exhaust fluid (DEF), used by the automotive industry as an additive to reduce NOx emissions CHS is committed to world class safety in both construction and operation of the plant. It will also follow the OSHA Voluntary Protection Program, which recognizes excellence in worker protection and safety. Located 10 miles northeast of Jamestown, this strategic location has ample market, abundant natural gas supply, and close proximity to Interstate 94 and the BNSF railway. The majority of production will be used within a 200-mile radius of the facility, serving retailers and farmers in the Dakotas and parts of Minnesota, Montana and Canada. Once operational, as well as during construction, the plant will spur new, local spending for workers’ food, lodging, clothing, entertainment and other items. SPIRITWOOD, N.D. EMPLOYING 160-180 FULL-TIME EMPLOYEES ABOUT Helping farmers raise healthy, profitable crops CHS FERTILIZER PLANT AT SPIRITWOOD, N.D. The plant will produce more than 2,400 metric tons of anhydrous ammonia daily, which will be further processed into urea and UAN; DEF is a byproduct of the production process. To produce this volume, the plant will require an estimated 88,000 MMBTU/day of natural gas, approximately 40 megawatt hours of electricity and 2,400-2,700 gallons/minute of water. Helping North Dakota farmers feed the world CHS has a long history of serving North Dakota agriculture. Based in Minnesota, CHS currently has more than 1,300 employees in North Dakota. We serve customers through N.D. agronomy, energy and convenience store locations and we have a leading sunflower operation based at Grandin, N.D.
Transcript

In September 2014, the CHS Board of Directors approved the construction of a multi-billion-dollar nitrogen fertilizer manufacturing plant to be built in Spiritwood, N.D. This plant will supply the region’s farmers with enhanced supplies of crop nutrients essential to growing corn, wheat and other crops. As a good corporate citizen with a heritage of stewardship in North Dakota, CHS is pursuing this project with a strong focus on safety, environmental stewardship and community investment.

Fertilizer plays a key role in helping to feed the world’s growing population. There is significant need for nitrogen fertilizers within a 200-mile radius of the plant site. That need continues to grow as U.S. corn production moves northward. Having a local, domestic supplier will reduce dependence on imported fertilizer and provide farmers in this region with a reliable supply of fertilizer when they need it most. In addition to helping area farmers, the plant will help strengthen the regional economy.

Designed for safety and efficiencyThe CHS fertilizer plant at Spiritwood, N.D., will employ state-of-the-art safety and operational technologies – including features that will help reduce emissions – and will be a leader in process efficiency.

The plant will:• Operate continuously 24 hours a day, 365 days a year

• Produce three types of fertilizers: anhydrous ammonia, urea and urea ammonia nitrate (UAN)

• Produce diesel exhaust fluid (DEF), used by the automotive industry as an additive to reduce NOx emissions

• CHS is committed to world class safety in both construction and operation of the plant. It will also follow the OSHA Voluntary Protection Program, which recognizes excellence in worker protection and safety.

Located 10 miles northeast of Jamestown, this strategic location has ample market, abundant natural gas supply, and close proximity to Interstate 94 and the BNSF railway. The majority of production will be used within a 200-mile radius of the facility, serving retailers and farmers in the Dakotas and parts of Minnesota, Montana and Canada.

Once operational, as well as during

construction, the plant will spur new, local

spending for workers’ food, lodging, clothing,

entertainment and other items.

SPIRITWOOD, N.D.

EMPLOYING160-180 FULL-TIME EMPLOYEES

ABOUT

Helping farmers raise healthy, profitable crops

CHS FERTILIZER PLANT AT SPIRITWOOD, N.D.

The plant will produce more than 2,400 metric tons of anhydrous ammonia daily, which will be further processed into urea and UAN; DEF is a byproduct of the production process. To produce this volume, the plant will require an estimated 88,000 MMBTU/day of natural gas, approximately 40 megawatt hours of electricity and 2,400-2,700 gallons/minute of water.

Helping North Dakota farmers feed the worldCHS has a long history of serving North Dakota agriculture. Based in Minnesota, CHS currently has more than 1,300 employees in North Dakota. We serve customers through N.D. agronomy, energy and convenience store locations and we have a leading sunflower operation based at Grandin, N.D.

Strong North Dakota stewardshipCHS is committed to supporting the communities in which we do business. For decades, CHS and the CHS Foundation have made substantial contributions to North Dakota programs (including flood relief) to help build vibrant communities, improve agriculture safety and develop future leaders. Since 2011, CHS has also honored and rewarded individuals in North Dakota through our Cenex® Tanks of Thanks® program.

Sharing success with area farmersAs a farmer-owned cooperative, CHS shares a portion of its earnings directly with farmers, ranchers and local co-ops. In the last five years, CHS has returned nearly $2 billion to its owners across the country.

Dedicated to safe operationsCHS is a Fortune 100 company and the nation’s leading farm supply cooperative, supplying crop nutrients, grain marketing services, livestock feed, food, food ingredients, business solutions and energy products (including Cenex® brand refined fuels, lubricants and propane). For more than 80 years, CHS has served the petroleum and agricultural industries with a strong track record of safely handling chemicals. Visit chsinc.com to learn more about CHS and visit chsstewards.com to read about the health and safety commitment at our refineries, pipelines and other facilities.

If you have questions, please contact Annette Degnan, Marketing Communications Director, at (651) 355-6126 or [email protected].

Plant Chronology

September 2012 Joint press announcement by North Dakota Governor Jack Dalrymple and CHS President and CEO Carl Casale

December 2012 Phase 1 (Pre-FEED) study completed – including economic feasibility, technology and safety considerations

January 2014 Phase 2 (FEED) – (Front End Engineering and Design) study completed – including preliminary engineering and facility layout, and related initial cost estimates

June 2014 Air permit granted by North Dakota Department of Health

September 2014 CHS Board of Directors approved plant construction

Groundbreaking following completion of additional details

First Half 2018 Commissioning and start-up of plant

© 2014 CHS Inc. September

5500 CENEX DRIVE INVER GROVE HEIGHTS, MN 55077 651-355-6000 CHSINC.COM

NORTH DAKOTA, $390 million

CHS PATRONAGE

CHS stewardship in 2013: $1.4 MILLION Rural youth leadership programs such as

North Dakota 4-H, FFA and Ag in the Classroom

$1.3 MILLION North Dakota Farmers Union Camping and Generation KEY programs

$920,000 Support for North Dakota State University

$150,000 Precision ag curriculum at Bismarck State College

$130,000 Scholarships at Bismarck State College, Dickinson State University, Minot State University and NDSU; plus college club mini-grants

$30,000 Local ag safety grants, including grain bin extraction equipment for rural communities

$4 MILLION TO NORTH DAKOTA COMMUNITIES SINCE 2008

CHS and CHS Foundation GivingCASH DISTRIBUTIONS IN

2000–2013


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