Mexico’s Fermaca breaks ground on $1.5bn nitrogen complex to cut urea imports
Fermaca broke ground on June 8 on a $1.5B nitrogen fertilizer complex in Lerdo, Durango, a project the Mexican energy firm says will cover close to 60% of the country’s urea imports once it reaches full output.
The Fermachem plant is designed to produce about 1 million tonnes of urea a year, or roughly 2,860 tonnes a day, using ammonia and urea technology licensed from KBR and Stamicarbon. Natural gas feedstock will come from Fermaca’s affiliate Essentia Energy, and the site will integrate carbon capture and treated-water systems, the company said.
Mexico imports 80% to 90% of its fertilizer, and the 2024 urea import bill ran to about 1.7 million tonnes. The Durango complex would displace a large share of that, trimming exposure to a global nitrogen market that has rallied since the Middle East conflict disrupted gas and ammonia supply.
Construction is expected to create about 3,000 jobs and some 260 permanent positions. Chief executive Ray Fletcher said the project anchors a domestic nitrogen supply chain for Mexican growers. First production is targeted for the third quarter of 2029.
Source: BNamericas
What to know about the Fermachem nitrogen complex
The complex is being built by Fermaca through its Fermachem unit in Lerdo, in the northern Mexican state of Durango. Fermaca is a Mexican energy and infrastructure company with a background in natural gas pipelines and power. Groundbreaking took place on June 8.
The plant is designed for about 1 million tonnes of urea a year, equivalent to roughly 2,860 tonnes a day. That volume would cover close to 60% of the roughly 1.7 million tonnes of urea Mexico imported in 2024.
Fermaca has put the investment at about $1.5B. First production is targeted for the third quarter of 2029, following a multi-year construction phase.
Mexico imports an estimated 80% to 90% of its fertilizer, leaving farmers exposed to global price swings and freight costs. A large domestic urea source would cut that dependence and provide a more stable, locally produced nitrogen supply.
The complex will use ammonia technology from KBR and urea technology from Stamicarbon. Natural gas feedstock will be supplied by Fermaca affiliate Essentia Energy, and the design integrates carbon capture and treated-water systems.
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