BioNitrogen Corp has signed a letter of intent (LOI) with the Levelland Economic Development Corp (LEDC) to build the company's second planned fertilizer plant at the Levelland Industrial Rail Park, Levelland, Texas, US.
As per the LOI, a new manufacturing plant will be constructed to use local organic matter as an input to produce urea fertilizer for the region.
The cost of the fertilizer plant is estimated to be $65m.
The LOI outlines that the LEDC will convey to the company Lot Number 1 of the Levelland Industrial Rail Park in Levelland, Texas, for the purchase price of $850,000.
During the coming weeks, the LEDC and BioNitrogen will collaborate to finalize all due diligence requirements including the review of the business plan, technical feasibility, market analysis, financing models, operations and compliance with all state and federal regulatory requirements.
The LEDC also will work with BioNitrogen to examine further possible economic incentives.
BioNitrogen is engaged in designing and constructing fully operational, turnkey manufacturing facilities to produce urea.