Phosphate is a critical nutrient for crop production, yet declining domestic phosphate production has increased U.S. reliance on imported fertilizer. Today, 40% of phosphate-based fertilizer is imported, increasing exposure to global supply chain disruptions and market volatility. By expanding domestic manufacturing capacity and bringing production closer to American farms, this project would help strengthen supply reliability, reduce exposure to global disruptions, and support more resilient phosphate-based fertilizer supply for U.S. agriculture.
Image courtesy of OCP SA Strengthening U.S. phosphate-based fertilizer supply for American farmers
CHS, America’s largest farmer-owned cooperative, and OCP North America, a subsidiary of OCP Group, a leading phosphate supplier, are working to establish a joint venture to build a phosphate-based fertilizer production facility at the Cornerstone Energy Park in Waggaman, Louisiana.
This project is designed to strengthen U.S. phosphate-based fertilizer supply by increasing domestic manufacturing capacity, helping address the long-term decline in U.S. phosphate production, and reducing reliance on imported fertilizer. By expanding phosphate-based fertilizer production in the United States, the project will help provide American farmers with a more reliable source of essential nutrients needed to grow crops, supporting a more secure and resilient food supply.
The project
The project would produce over 1 million metric tonnes of phosphate-based fertilizer annually, creating a significant new source of domestically manufactured crop nutrients for American agriculture. Products manufactured at the facility will be distributed through the CHS cooperative- and farmer-owned distribution network and marketed via OCPNA distribution relationships into key U.S. growing regions.
The project is expected to represent a capital investment of approximately $450 million in Jefferson Parish. Subject to project-related and funding approvals, the project will help connect American farmers more directly to fertilizer production while strengthening domestic manufacturing capacity.
FAQs about the project
-
Why is this project needed?
American farmers depend on phosphate-based fertilizer, yet the United States continues to rely heavily on imported fertilizer products. This project is designed to increase domestic fertilizer production capacity and help create a more reliable supply of crop nutrients for farmers. The project would produce over 1 million metric tonnes of phosphate-based fertilizer annually and could reduce U.S. dependence on imported phosphate fertilizer by up to 48%.
The project also addresses a long-term industry need. The last phosphate production facility built in North America was constructed in 1984, and existing production capacity is aging. By increasing phosphate fertilizer production closer to U.S. farms, this project can help improve supply chain resilience and support American agriculture for decades to come. -
What is phosphate-based fertilizer?
Phosphate-based fertilizer supplies phosphorus, one of the four primary nutrients (nitrogen, phosphate, potassium and sulfur) required for plant growth. Phosphorus plays an important role in root development, energy transfer within plants, photosynthesis and crop maturity. Farmers use phosphate fertilizer to help crops establish strong roots, efficiently utilize nutrients and achieve healthy growth throughout the season.
-
What products will be manufactured by this project?The facility is expected to produce phosphate-based fertilizers commonly used by farmers, including monoammonium phosphate (MAP) and diammonium phosphate (DAP). These products provide important nutrients that support crop growth and productivity.
-
What is the companies' commitment to Jefferson Parish?
CHS and OCP recognize that major projects must earn trust within the communities where they operate. Our commitment to Jefferson Parish is to be a responsible long-term partner by engaging local stakeholders, operating safely, complying with all regulatory requirements, and creating economic opportunities through investment and employment.
The project is expected to create permanent jobs, support local businesses and generate additional economic activity throughout the region. CHS and OCP have also committed to supporting local organizations, including an initial donation of $100,000 to area food banks. -
Will the new facility and its production process be safe?
Safety is a core priority of the project. The proposed facility is expected to be located within Cornerstone Energy Park, an established industrial complex that already manages similar industrial materials and operations. The facility must comply with all applicable federal, state and local requirements before construction and operation can proceed.
The project has been designed to utilize existing industrial infrastructure where possible, including pipeline delivery systems for key raw materials. Pipeline transportation reduces truck traffic and is considered one of the safest methods of transporting industrial products. -
What are the safety and response plans for this project?
Detailed safety and emergency response procedures will be developed as part of the engineering, permitting and operating processes. The project team will work closely with Cornerstone Energy Park and applicable regulatory agencies to ensure appropriate safety, environmental and emergency response measures are implemented before operations begin.
The facility will be required to meet all applicable safety regulations and will incorporate industry-standard practices for handling, storing and transporting materials.
-
What will be stored on site?The project will include storage for both raw materials and finished products. Merchant-grade phosphoric acid (MGA) will be stored in dedicated tanks with secondary containment systems designed to safely contain the material. Finished fertilizer products will be stored in covered warehouses before shipment. The facility will also utilize existing storage infrastructure for materials such as ammonia and sulfur where appropriate.
-
What is the estimated timing of the project?
Detailed engineering is currently underway. Following all project-related and funding approvals, construction is expected to take up to 24 months.
-
Why was Cornerstone Energy Park selected as the site?Cornerstone Energy Park was selected because it is an existing industrial site with the infrastructure, transportation access and workforce needed to support a project of this scale. That helps reduce the need for new infrastructure development while providing efficient access to the agricultural regions the facility is intended to serve.
Benefits for American agriculture
Supporting a more reliable phosphate-based fertilizer supply
Helping improve farmer access and supply certainty
Fertilizer is one of the largest input costs for crop producers. As global market disruptions have increased recent years, managing supply has become increasingly important for farmers.
By increasing domestic production capacity, we are improving supply chain efficiency. This project has the potential to create a more stable phosphate-based fertilizer supply environment.
Benefits for Louisiana
Creating jobs in Jefferson Parish and the Greater New Orleans Area
The facility is expected to create about 60 permanent, high impact jobs in Jefferson Parish along with 500 construction jobs. The total job impact estimate of 924 direct and services-support jobs during the project period brings real economic and community impact to Louisiana.
Strengthening the local economy
In addition to direct employment, the project would generate local economic growth and activity through its commitment to local hiring and engaging local suppliers, contractors, and transportation providers, as well as supporting local businesses such as restaurants and hotels.
Commitment to communities
Throughout project planning and development, CHS and OCP are committed to engaging the local community and stakeholders, communicating transparently and operating responsibly. As part of the project announcement between CHS and OCP, the companies will jointly contribute $100,000 to support hunger relief efforts in the Greater New Orleans area. This donation reflects the joint venture’s commitment to supporting the communities it serves and addressing food insecurity across the region.
The donation will support:
- Kenner Food Bank, operated by the City of Kenner, which provides food assistance to East and Westbank residents in need.
- Second Harvest Food Bank, which serves as the leading hunger-relief organization for South Louisiana, distributing food and resources through a broad network of community partners.
Through this contribution, the future joint venture and its parent companies are investing locally and demonstrating a shared commitment to South Louisiana and the Jefferson Parish community.
Through its Myrtle Grove grain export facility, CHS has established a strong presence in Louisiana and a history of giving in the community where it operates. In addition to its local community support, CHS has also donated $400,000 to the American Red Cross to aid in hurricane relief efforts.
FAQs for Louisiana residents
-
Are CHS and OCP new to Louisiana?CHS has been investing in the Gulf Coast for many years and already operates significant agricultural infrastructure in the region including a grain export facility at Myrtle Grove, Louisiana. Through those investments, CHS has worked with Gulf Coast communities, employees, and business partners to help support American agriculture and global trade.
-
Will this project impact the environment?Environmental reviews and permitting are important parts of project development. Before construction can proceed, the facility will be required to comply with all applicable federal, state, and local parish environmental requirements. Environmental impacts, emissions, water use and permitting requirements will be thoroughly evaluated through the regulatory review process. The project's location within Cornerstone Energy Park allows it to leverage existing infrastructure, utilities, and transportation networks, minimizing the need for additional infrastructure development.
-
Are there any odors, dust or noise that will be produced as part of the production process?The facility is being designed to minimize the potential for odors through modern process design and emissions control and will be evaluated as part of the environmental permitting process and managed in accordance with applicable regulatory requirements. Normal operational sounds associated with industrial facilities, such as fans, rail movements, truck loading and barge operations, are expected. However, the manufacturing process itself is not expected to create significant noise.
-
How is this project impacting the river's infrastructure?
The project includes constructing a barge dock to the east of the existing dock. A conveyor will supply the new dock for barge loading. The existing liquid dock would be upgraded to accommodate larger vessels.
The project may require limited dredging near the existing dock to accommodate larger vessels. According to current plans, these improvements are not expected to create significant new traffic on the river or materially change existing shipping activity patterns in the area.
-
How will the finished product be transported?Finished fertilizer products will be transported by barge, rail and truck. The Mississippi River system provides access to many agricultural regions throughout the United States.
About CHS and OCP North America
About CHS
CHS is the nation's leading farmer-owned cooperative, connecting producers to global agricultural markets through a network of cooperatives, retailers and customers. CHS brings access to critical crop inputs, such as crop nutrients, farmers need to grow their crop and feed the world. Learn more about CHS
About OCP North America
OCP North America, a subsidiary of OCP Group, provides a reliable supply of high-quality phosphate-based solutions tailored to the needs of North American agriculture.
OCP North America promotes responsible nutrient management and the adoption of science-based agronomic practices. Backed by agronomic expertise and a comprehensive understanding of regional cropping systems, the company’s product portfolio enables farmers to improve nutrient efficiency, enhance productivity, and build more resilient agricultural operations.
Guided by the principles of 4R Nutrient Stewardship, the company leverages the global capabilities of OCP Group to deliver customized solutions that support productive and sustainable agriculture while contributing to long-term soil health and environmental stewardship. Learn more about OCP North America