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The Role of Distribution
CF Industries’ distribution system, one of the industry’s largest,
is ideally situated to quickly supply nitrogen and phosphate
products to agricultural and industrial markets throughout the
Midwest and to export markets. With nearly 40 terminals and
warehouses and access to multiple modes of transportation including
pipeline, barge, rail, and truck, the company has the capability to
store more than one million tons of nitrogen and phosphate in its
terminals and warehouses, ready for delivery.
Agricultural
Markets
Nitrogen and
phosphate are two of the most important nutrients farmers need for
crop yield and quality. Fertilizer use is time-sensitive. When
spring arrives, farmers race the clock to get their crops into the
field, planting and fertilizing millions of acres across the country
in a matter of days. The only sure way to meet that demand for
fertilizer is to have product inventories staged in the marketplace
at distribution facilities with high-volume, state of the art
product handling equipment.
The North American logistics network simply can’t meet farmers’
fertilizer needs on a just-in-time basis from distant manufacturing
sites.
Typically, CF Industries’ manufacturing complexes operate all year,
fulfilling customer orders and building inventories for seasonal
demand. The company’s dry products warehouses can stock nearly
600,000 tons of Urea, Diammonium Phosphate (DAP) and Monoammonium
Phosphate (MAP) in or near the marketplace. Its ammonia terminals
have the capacity to hold more than 700,000 tons of products, and
its UAN Solution terminals have more than 400,000 tons of storage
capacity (at 28 percent nitrogen equivalent)..
Industrial Markets
CF Industries’ products – principally anhydrous ammonia and urea
– also serve growing industrial markets, especially for the control
of nitrogen oxides (NOx) emissions. NOx are
formed when fossil fuels are combusted at high temperatures and have
been identified as a contributing factor to acid rain and the
formation of ground-level ozone. These emissions are subject to
ever-tightening environmental standards.
Selective Catalytic Reduction (SCR) is the preferred technology to
control NOx emissions in stationary units (such as
electricity generating units) and mobile units (such as
diesel-powered vehicles). SCR uses a reagent and catalyst to convert
NOx into elemental nitrogen and water. Ammonia, provided in the form
of anhydrous ammonia, aqua ammonia, urea, or an aqueous urea
solution (generally known as Diesel Exhaust Fluid) is normally used
as the reagent.
CF Industries, with its large network of ammonia terminals and dry
products warehouses (for urea), is ideally situated to provide the
nitrogen for SCR. Logistically, its river-based ammonia distribution
network, augmented by a fleet of nearly 600 rail cars, provides the
ability to serve customers over a broad geographical area.
