No work planned yet on Cronus fertilizer plant in Tuscola

TUSCOLA, Ill. (AP) — It’s been more than seven years since it was announced that Cronus Chemicals would develop a $1.4 billion fertilizer plant west of Tuscola.

Exactly when this project is going to be built is a question Brian Moody, Tuscola’s Chamber and Economic Development director, said he still gets asked — frequently, The News-Gazette reported.

And it’s a question he can’t answer, Moody said, though Tuscola continues to have a relationship with the company and is in support of the development.

“I guess I would tell you economic development is a long road,” he said.

And a longer road, still, in the midst of a pandemic that has brought, along with a public health crisis, labor and supply shortages and higher construction costs.

“COVID has, obviously put, I guess you could say, a delay on the project,” Moody said.

For one thing, it’s no longer a $1.4 billion project. The last update Tuscola had on the project cost was that it would run $1.762 billion, he said.

Plans to build the new nitrogen fertilizer plant west of Tuscola were announced in October 2014, when Pat Quinn was Illinois’ governor.

The project was announced with $52 million in economic incentives to help persuade Cronus investors looking at 76 different sites in nine states to ultimately decide to choose the Tuscola site.

Cronus Fertilizers, the name of the proposed plant and a project of Cronus Chemicals, announced in 2018 that it had executed a contract with Thyssenkrupp Industrial Solutions for the engineering, procurement and construction of the Tuscola plant.

Cronus announced in December 2020 that there were important changes made to its partnership with Thyssenkrupp Industrial Solutions “that will enhance the success of Cronus’ proposed Tuscola, Illinois fertilizer plant.”

Cronus said in that announcement a year ago that the facility in Tuscola would produce up to 2,300 metric tons of ammonia per day, “giving regional farmers access to locally produced ammonia and largely eliminating the need for imported products.”

Along with Tuscola, the Urbana and Champaign Sanitary District is also still waiting for this plant to be under development.

The sanitary district has been periodically extending its contract to supply wastewater — needed for use in the fertilizer manufacturing process — to the future Cronus plant in Tuscola.

In a memo to the sanitary district’s board in July, Executive Director Rick Manner said Cronus had not yet secured financing for the project, and he recommended that the district “formally advise that we do not intend to terminate before July 1, 2022.”

“This would confirm the availability of UCSD’s water supply for Cronus while they attempt to finalize their funding for the project,” Manner said in the memo.

Cronus needs about 6 million gallons of water a day, and the sanitary district has estimated it will net about $1 million a year from the arrangement, Manner said.

Cronus officials could not be reached by The News-Gazette.

Moody said he was in touch with company officials via email this week and was told Cronus is continuing to move the Tuscola project forward and anticipates being able to provide an update in about a month.

Illinois Environmental Protection Agency spokeswoman Kim Biggs said the agency received a new permit application for the Tuscola plant in March 2020, and it’s still pending.

Moody said its likely incentive agreements would have to be revisited for the Tuscola plant, but Cronus continues to have an option on the property for the plant and labor agreements with unions in place.

And for Cronus, the economic opportunity for the plant “has clearly been there,” he said.

As for the city of Tuscola, Moody said some legwork has been done, but no money has been spent.

“Now, it’s a matter, as it always has been, can Cronus align all the stars to do their project,” Moody said. “So far, that hasn’t happened.”