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Home > Media>News & Statements> Genesis Fertilizers and Gunvor Pursuing Partnership to Secure Natural Gas Supply, DEF Offtake, and Carbon Credits Monetization
27 August 2025
Strategic alignment would secure critical feedstock, product offtake, and sustainability value as Genesis Fertilizers advances toward a low-carbon production future in Western Canada
SASKATOON – Genesis Fertilizers is pleased to announce the signing of a commercial Letter of Intent (LOI) with Gunvor USA LLC, one of the world’s largest independent commodities trading houses, to jointly pursue three key agreements for Genesis Fertilizers’ proposed nitrogen fertilizer production facility at Belle Plaine, SK (the Facility): a natural gasNatural Gas Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane (CH4), but commonly includes varying amounts of other higher alkanes, and sometimes a small percentage... Read more supply agreement, a diesel exhaust fluid (DEF) offtake agreement, and a carbon credits offtake agreement. This collaboration further advances Genesis Fertilizers’ commitment to building a modern, low-carbon fertilizer facility that provides value across the supply chain—from global traders to Western Canadian farmers.
The three agreements currently in discussion to be finalized are intended to govern long-term strategic collaboration, including natural gas supply to the Facility, full offtake of the Facility’s DEF product to Gunvor, and Gunvor’s purchase of up to 100% of carbon credits generated through the Facility’s carbon capture and sequestration technologies.
“This is a defining step in securing critical commercial components for the Genesis Fertilizers project,” said Derek Penner, President and CEO of Genesis Fertilizers. “Gunvor brings exceptional market insight and global scale, and their participation is a strong validation of our integrated, sustainability-driven model.”
Key Elements of the Proposed Agreements:
Natural Gas Supply Agreement:
Diesel Exhaust Fluid (DEF) Offtake Agreement:
Carbon Credit Offtake Agreement:
Gunvor highlighted the alignment in values, stating: “Genesis Fertilizers represents the future of sustainable agri-input production. Our team is excited to collaborate on this transformational project and bring forward a supply chain**Supply Chain** A supply chain is a complex network that includes individuals, organizations, resources, activities, and technologies involved in the production and delivery of a product or service from the... Read more anchored in reliability, transparency, and emissions reduction.”
Enabling a Sustainable Ag Future
The Belle Plaine facility is being designed as one of the most modern and sustainable nitrogen fertilizer production sites in North America. Featuring an integrated carbon capture system and built to optimize product and energy efficiency, the project is expected to play a key role in supporting Canadian agriculture’s low-emission future.
The Letter of Intent signed with Gunvor is a critical milestone as Genesis Fertilizers moves toward Final Investment Decision (FID), targeted in early 2026.
About Genesis Fertilizers
Genesis Fertilizers is proposing to finance, design and construct a new, highly efficient nitrogen fertilizer production and distribution system that serves today’s modern farmer. This will be comprised of a central production facility constructed near low-cost raw materials serving a Western Canadian network of strategically located farmer-centric distribution centres. Genesis Fertilizers’ is a privately held limited partnership, and its securities do not trade on any exchange.
Gunvor Group Ltd (“Gunvor”), one of the world’s leading independent commodities trading companies, today announces the following financial information for the year ended 31 December 2024:
Revenue: US $136 billion
Volumes: 232 million MT
Gross profit: US $1.8 billion
Net profit after taxes: US $729 million
Equity: US $6.5 billion
Gunvor continued its track record of solid performance, posting a net income of US $729 million. The result reflects a return to more normalized energy markets compared with the previous two years, which featured significant volatility related to the global pandemic, the energy crisis, and international conflicts that had roiled energy markets.
The Group’s revenue increased to US $136 billion for the year, led by the growth of physically traded volumes of crude oil and refined products, which compensated for the lower-price commodities environment. Gunvor also continued to focus on trading Energy Transition commodities, which comprised almost 30% of total traded volumes.
While the Group’s result is lower than the highs of recent years, it remains above the pre-pandemic era and stands as the fourth-highest historically. Businesses related to the Energy Transition and shipping and chartering balanced those operating in the stabilized crude oil and refined product markets. Profits were further impacted by impairments, including for the Rotterdam refinery, whose processing units are being reviewed for mothballing.
During the year, the company formally entered or expanded into new market sectors through significant investments in: power generation in Spain; retail fuel distribution in Pakistan; upstream natural gas production in the United States; and solar development in Italy.
At year end, the Group’s equity stood at US $6.5 billion, which serves as a solid foundation for the future development of Gunvor’s trading and investment activities.
Gunvor’s shareholding at year-end stood at 84.79% held by Torbjörn Törnqvist, the majority beneficial owner, with the remaining 15.21% held by the Gunvor Employee Shareplan. There are no outside shareholders or economic interests.
