Fertilizer giant CF Industries shutters UK production plant due to rising energy costs, seeks financial restructuring
06/21/2022 // Ethan Huff // Views

A major fertilizer producer in Great Britain is shutting down production due to excessively high natural gas feedstock costs.

CF Fertilizers U.K. Limited, a subsidiary of CF Industries Holdings Inc., had previously announced a suspension of operations back in the fall, and is now seeking to financially restructure itself entirely amid the changing global economy for energy.

A continued surge in European gas prices has reportedly made it too expensive for CF to continue procuring natural gas, which in raw form is a key ingredient used to make nitrogen fertilizers.

It no longer makes financial sense, in other words, for the company to continue doing what it was doing previously, at least not as long as prices remain as high as they currently are.

As of this writing, European gas prices are hovering around $23 per million British thermal units (MMBtu), while U.S. natural gas futures have settled around a seven-year high of $5.460 per MMBtu.

According to Ben Isaacson, an analyst at Scotiabank, CF has no choice, financially speaking, but to shutter its two U.K. plants. Incremental losses, however, should not continue because the company's UK assets generate only about 2.5 to 3 percent of quarterly EBITDA.

"This is why we think investors should look past CF idling the plants," Isaacson wrote in a memo.

CF currently does not have a timeline estimate for when it might resume its U.K. operations. Several ammonia plants it operates in Donaldsonville, Louisiana, however, have resumed operations after being temporarily halted due to Hurricane Ida.

Brighteon.TV

Is the world's population being reduced, hence the need for less fertilizer?

In a corporate communications statement, CF explained that its goal is to restructure its U.K. business with long-term profitability and "sustainability" in mind – sustainability, in case you were unaware, is often used as a dog whistle term for depopulation.

The company's Billingham plant is the largest producer of ammonia, ammonium nitrate (AN) and carbon dioxide (CO2) in the country. CF says it is "better positioned for long-term sustainability" than its other facility near Chester.

The Billingham plant alone is "better positioned for long-term sustainability as it has sufficient capacity to meet all forecasted domestic demand for AN fertilizer," the company said.

The company's Ince facility, on the other hand, has not produced ammonia since September 2021, which is not that long ago. Shutting this one down permanently still aligns with the company's long-term goals, it said, despite reduced overall output.

Reading between the lines, it sounds a lot like there is soon to be a mass die-off. Perhaps due to Wuhan coronavirus (COVID-19) "vaccines?" This would explain why there will be much less demand for fertilizer in the future.

As long as fuel prices remain high – and this appears to be the case currently and for the foreseeable future, more than likely by design – then it will no longer be cost-effective to produce fertilizer from it, at least in the United Kingdom. This will mean much lower crop yields moving forward, which means food shortages at the current population levels.

CF was given a grant back in the fall to continue operations temporarily with the hopes that energy prices would eventually settle back down. Since that did not happen, we are now watching the dominoes fall as the global food supply, powered by natural gas-derived fertilizers, gets decimated.

Keep in mind that natural gas is also required to heat homes. The U.K. and Europe – and realistically, the entire world, based on where things are headed – are in for a really dark winter this year and next.

You can track the collapse of the global economy at Collapse.news.

Sources for this article include:

Reuters.com

NaturalNews.com

CFindustries.com



Take Action:
Support Natural News by linking to this article from your website.
Permalink to this article:
Copy
Embed article link:
Copy
Reprinting this article:
Non-commercial use is permitted with credit to NaturalNews.com (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.
App Store
Android App
eTrust Pro Certified

This site is part of the Natural News Network © 2022 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
Natural News uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Close
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.