Agrium signs ammonia offtake agreement for Faustina solid carbon gasification project

Agrium Inc. (TSX and NYSE: AGU) announced today that it has signed a 15-year offtake agreement with Faustina Hydrogen Products LLC (FHP). The offtake agreement provides Agrium with competitively priced nitrogen for our customers with strategic access to all modes of transport to domestic customers, including barge, pipeline and rail as well as deep-water access for possible exports. The agreement provides that Agrium will purchase 40 percent of the approximately 1.3 million tons of anhydrous ammonia that would be produced annually as part of the gasification facility. Agrium also has the option to obtain a sufficient supply of carbon dioxide for the potential development of a large-scale facility for upgrading ammonia to UAN/urea. The agreement is subject to various conditions, including among others, the ability by FHP to obtain adequate financing to construct the facility and the successful completion and startup of the project. Assuming financing is obtained prior to the end of the calendar year, FHP expects the project to be in operation by late 2010.