About the Louisiana Ammonia Producers
Three Louisiana companies operating anhydrous ammonia facilities play a large part in feeding the world’s growing population. These companies are CF Industries, Mosaic Phosphates and PCS Nitrogen.
Best known as a cleaning solvent, ammonia is primarly used to make agricultural fertilizers. In fact, approximately 85 percent of the ammonia produced in the U.S. is used to make fertilizers. Louisiana’s ammonia producing facilities are capable of producing approximately 3.4 million tons of anhydrous ammonia annually, and represent about 30 percent of the total ammonia consumed in the United States.
The modern ammonia industry began operating in Louisiana in the mid-1960s. Abundant and relatively inexpensive natural gas (vital to the production of ammonia) and ease of Mississippi River transportation spurred the rapid development of the industry. At one time, Louisiana’s ammonia industry had grown to include as many as 10 companies operating 11 facilities. In the early 2000s, downturns in global markets for agricultural nutrient products and the high cost of natural gas reduced those numbers to three companies operating six facilities.
Most recently, the chemical and petrochemical landscape is experiencing a renaissance due to record low natural gas prices and a favorable business climate in the state. Two of LAP's members, CF Industries and Mosaic Phosphates, have recently announced significant expansion plans at their Louisiana facilities. In addition, other ammonia producers have announced plans to develop ammonia facilities in the state in the years to come.
Louisiana ammonia producers continue to contribute significantly to the local and state economies.
In fact, according to the Fertilizer Institute's 2009 Economics Contributions of the U.S. Fertilizer Manufacturing Industry Report, Louisiana ranks first among states with ammonia plants in terms of economic contributions of the fertilizer manufacturing industry.
As of 2011, the ammonia industry provides jobs for 830 permanent, full-time employees living in about five parishes. In addition, these facilities employ nearly 700 part-time, temporary or contract employees. Total payroll for the industry is more than $126 million annually. The ammonia industry also pays nearly $20 million in state & local taxes each year.
Louisiana Ammonia Producers consume more than 95 million cubic feet of natural gas each year. About 60 percent of this natural gas is used as a feed stock, and 32 percent is used as fuel. Much of this gas comes from fields in Louisiana, generating millions of dollars in severance taxes for the state. These facilities pay property taxes to parish and municipal governments amounting to about $11 million each year. Sales taxes, which are a direct result of these operations, are about $8 million per year to state and local governments.
The Louisiana Ammonia Producers also make direct charitable donations of over $425,000 each year to a number of civic organizations & educational programs. Some of the recipients of this support include:
- 4-H Clubs
- Adopt A School Scholarship Fund
- American Heart Association
- Ascension Fund
- Ascension Parish Schools Summer Reading Program
- Ascension Society Heritage Foundation
- Boy/Girl Scouts of America
- Caring Parents of Geismar Tutorial Program
- Community Fund for the Arts
- Donaldsonville Association for Retarded Citizens (ARC)
- Geismar Mutual Aid
- Gonzales (Ascension) Chamber of Commerce
- Greater Baton Rouge Food Bank
- Junior Achievement
- Louisiana Purchase Zoological Society
- March of Dimes/WalkAmerica
- Rural River Region
- Salvation Army
- St. Gabriel Youth Theatre
- Community Centers
- The Nature Conservancy of Louisiana
- United Way
- Adopt-a-School programs
- Scholarship funds
- Relay for Life
- River Parishes Community College
- St. James International Science Fair
- St. James Parish School System
- Teach for America
The Louisiana Ammonia Producers support charitable and civic causes in their communities by encouraging employees to participate in community organizations and events. Employees volunteer nearly 2,000 hours each year to charitable and civic activities.