Germany’s potash giant K+S and Swedish company Cinis Fertilizer have agreed a cooperation deal on potassium sulphate (SOP).
Under the Letter of Intent (LOI), K+S will supply Cinis Fertilizer with its entire annual potassium chloride (MOP) requirements. “In return, K+S could purchase up to 600,000 tonnes of potassium sulfate (SOP) per year from Cinis Fertilizer,” said K+S in its statement.
“The agreement fits perfectly with our new corporate strategy, which includes the expansion of our core business through cooperation,” says K+S Chairman of the Board of Executive Directors Dr. Burkhard Lohr. “As a result, K+S will secure additional quantities of the specialty fertilizer potassium sulfate.”
K+S already produces SOP itself. Around 800,000 tonnes per year through primary production.
“Cinis Fertilizer is planning the synthetic production of potassium sulfate in the so-called Glaserite process at several production sites in Scandinavia,” the statement from K+S said. “In addition to potassium chloride supplied by K+S, the company will use residues from battery, pulp, and paper production as raw material and renewable energy. Sodium chloride (salt) is also generated as a by-product in the production of potassium sulfate,” the statement continued.
In March 2019, K+S entered into an agreement with the Australian company, Kalium Lakes, for the purchase of up to 90,000 tonnes of potassium sulfate (SOP) per year.
Cinis Fertilizer’s CEO Jakob Liedberg told New AG International: “We are very happy to announce the LOI with KplusS for our future supply that is planned to be in full production in 2028 and believe this further supports our mission to produce a fossil free SOP. “
Liedberg confirmed to New AG International that Cinis has an exclusive offtake with Van Iperen for all its SOP from plant 1 and plant 2. The LOI regarding SOP with K+S is for plants 3 and 4, starting from 2026 and New AG International understands that these plants will not be in full production until 2028. Plant 1 (and 2) is expected to be on stream as of late 2023/early 2024.
According to K+S’s 2021 annual report the company had total sales volume of 7.6 million tonnes, up from 7.3 million tonnes in 2020.