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Agrium is studying construction of a coal gasification facility to supply raw materials for its Kenai, Alaska, nitrogen fertilizer plant. The proposed plant would convert low-sulfur coal from the nearby Beluga Coal Field into the syngas feedstock needed for ammonia and urea production, plus electricity and carbon dioxide that might be used for oil and gas exploration. Agrium says it is in discussions to use Shell's gasification technology. If the study results are positive, the technology could be installed at the complex by 2011. Agrium operates ammonia and urea units in Kenai that have a total capacity of 1.5 million metric tons per year.
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