IFCo: Feeding and Fueling the World

Starting production in 2017, Iowa Fertilizer Company (IFCo) operates the first greenfield, world-scale nitrogen fertilizer plant built in the U.S. in more than 35 years. With state-of-the-art technology and a proven production process, IFCo is committed to sustainably feeding and fueling the world. 

We have a diversified product portfolio that includes ammonia, granular urea, urea ammonium nitrate, and diesel exhaust fluid, a fuel additive used to lower harmful emissions and improve fuel economy. 

IFCo: Key Achievements

Full-Time Employees:

Annual Total Payroll and Maintenance Spending:

Total Investment:

* Maximum Proven Capacity figures reflect 30-day continuous maximum operating performance based on 365 days. IFCo cannot maximize production of urea, urea ammonium nitrate (UAN), diesel exhaust fluid (DEF) simultaneously.

** A short ton is equivalent to 0.907 metric tons

Iowa: A Great Place to Grow

Strategic Location in the Heart of the Midwest Corn Belt

IFCo is strategically located in southeast Iowa. We are on the Iowa-Illinois border in the center of the American Midwest, the country’s largest market for direct application nitrogen fertilizer products. Our logistics infrastructure is optimized with sizeable storage capacity and access to major transportation options including rail, barge and freight truck.  

IFCo’s accessibility, storage capacity and proximity to key markets allow us to effectively and efficiently serve customers around the world. 

Why Iowa?

IFCo’s fertilizer plant is one of the largest private construction projects in Iowa’s history.

  • The plant would not have been built without the provision of state funded tax incentives from both the State of Iowa and Lee County designed to attract and promote job creation and economic growth and development in the region. IFCo’s plant was awarded the incentives because of its strong business case and the potential positive impact it could bring to the economy of southeast Iowa.
  • Tax incentives are common with large projects of this kind and are a powerful way of equalizing high-income tax states such as Iowa (12%; one of the highest rates in the U.S. at the time) with low or no-income tax states such as Texas (0%).
  • IFCo’s investment in Iowa substantially exceeded the original commitment at the outset of the project, to the extent that the Iowa Economic Development Authority acknowledged that IFCo had more than satisfied its investment and employment targets and closed its project file in October 2018. To date, IFCo has not fully utilized the granted incentives because of the additional investment.

Today, IFCo remains an integral part of Lee County and the broader southeast Iowa. We actively contribute and support the region’s economy and growth. In 2023, IFCo paid nearly $2.5 million in taxes to Lee County. 

Tax Incentives Granted to IFCo by the State of Iowa and Lee County:

  • Iowa Investment Tax Credits: The State of Iowa granted IFCo up to $96.5 million in Iowa Investment Tax Credits to offset state income taxes. Many states including Iowa provide this type of tax credit to help attract investment and level the playing field with zero-income-tax states. To date, IFCo has not used the tax credits because of depreciation deductions and financing costs associated with our substantial capital investment.

  • 20-Year Property Tax Exemption: Lee County offered a 20-year property tax exemption to IFCo. The exemption is limited to the value of certain improvements, including the initial plant construction. This temporary tax moratorium runs from 2014 through 2033. However, IFCo has made significant investments locally in lieu of taxes and paid all associated infrastructure costs.

    IFCo will continue operating after the moratorium expires, which will bring significant new tax revenue to Lee County. The Iowa Economic Development Authority estimated the value of our tax benefit at approximately $133 million over a 20-year period, approximately half of which has elapsed.

    As a natural gas consumer, IFCo is also subject to the Iowa Replacement Tax, an excise tax associated with the distribution of natural gas. This provides approximately $1.8 million of additional revenue per year to Lee County, its local school districts and more.

  • Tax-Exempt “Qualified Disaster Bonds”: The issuance of these bonds is pursuant to a program operated by the U.S. Federal Government under the Heartland Disaster Tax Relief Act of 2008; the program aims to attract investment to the Midwest. These bonds were vital for making the investment of IFCo economically viable. The tax exemption under these bonds, which applies to the investors that hold the bonds and receive interest, indirectly benefits IFCo by lowering its borrowing costs. More importantly, they provided access to the tax-exempt municipal market, which helped balance financial risks associated with the project and debt capital markets.

About IFCo

  • IFCo operates one of the newest and most advanced fertilizer production facilities in the U.S. It produces a wide range of nitrogen fertilizers and diesel exhaust fluid. The Iowa facility sits on 320 acres and uses innovative technologies from industry-leading providers like KBR, Stamicarbon and Thyssen Krupp Industrial Solutions. Today, IFCo’s Iowa facility has 264 full-time employees.
  • IFCo began production in 2017 and achieved its first full year of production in 2018. By the end of 2018, IFCo received a permit to further increase operating rates on a permanent basis. IFCo has consistently operated above its installed capacity, consistently achieving maximum production rates that are 10-15% above the installed capacity.
  • IFCo aspires to be the most efficient and environmentally friendly nitrogen fertilizer production facility in the U.S. It already has low emissions and high gas efficiency, and it has demonstrated an impressive operational efficiency of 27-27.5 MMBtu per short ton of ammonia.
  • The facility is designed to maximize product-mix flexibility. IFCo can adjust its product mix and diversify its end markets with relative ease. Our production of diesel exhaust fluid is an example of our product diversification, and the consumption and growth of diesel exhaust fluid is facilitated by regulations around heavy-duty vehicles.
  • IFCo is proximate to all necessary infrastructure. This includes the ANR Natural Gas Pipeline, major roadways and railways, and the Mississippi River.
  • With funding support from OCI Global, we have invested over $300 million in our production facility since 2017. The funds are used to increase its manufacturing capabilities, expand its logistics infrastructure and accelerate projects related to sustainability and decarbonization.

IFCo’s Annual Production Capacity

Ammonia:

Granular Urea:

Urea Ammonium Nitrate (UAN):

Diesel Exhaust Fluid:

A Trusted Community Partner

IFCo is a trusted partner to Iowa and its local communities, providing farmers with a stable, domestic source of nitrogen fertilizers. IFCo has 264 full-time employees and partners with an array of local suppliers in the region. We also support a wide range of educational programs and charitable causes.

Lee County Career Advantage Center
Lee County Public Schools
Southeastern Community College
Fort Madison Sports Complex

Wever Fire and Rescue
Fort Madison Public Schools
United Way
Public Libraries in Donnellson, Mt.

Pleasant, Burlington, and Keokuk
Keokuk Community School District
Fort Madison Community School District
Central Lee Community School District

Highlights

Helping Lee County Public Schools to eliminate student lunch debt.

Contributing to Southeastern Community College’s “Building the Dream Fund,” which helps the institution renovate and upgrade its facilities, classrooms, and technologies

Supporting the groundbreaking of the Baxter Sports Complex.

Supporting Lee County Career Advantage Center to provide workforce training for students and parents and helping them connect with local employment opportunities. This builds on IFCo’s longstanding commitments to supporting the socio-economic development of the region, helping upskill young people, and facilitating access to job opportunities in the fields of science, technology, engineering, and mathematics (STEM).

Contributing to local organizations and initiatives, including Wever Fire and Rescue, Fort Madison Public Schools, Fort Madison Fourth of July Celebration, public libraries (including at Donnellson, Mt. Pleasant, Burlington and Keokuk), United Way and several food pantries

Helping teachers in Keokuk Community School District, Fort Madison Community School District, and Central Lee Community School District purchase supplies

Contact

For inquiries, please reach out to ifco.information@oci-global.com.