Council extends letter of intent for Northern Plains Nitrogen; developer says financing progress continues

The Grand Forks City Council on June 23 approved another extension of a letter of intent with Northern Plains Nitrogen (NPN) as the company continues private fundraising and project re‑scoping.

Larry Mackey (identified in the meeting as NPN representative) told the council NPN completed a cash call of existing investors to hire an investment bank, Hamilton & Clark, to assemble an investor offering and update the financial package. Mackey said the project scope was simplified and capital expenditures were reduced to just above $2 billion. The company will produce a million tons of granular urea and accompanying ammonia. Mackey said Hamilton & Clark will initially raise funds to pay for an updated FEED (front‑end engineering design) and associated engineering work.

Council members asked what remains to make the project investible; Mackey said the single largest unresolved item for investors is assurance of an adequate water supply. The NPN proposal relies on large wastewater reuse volumes from Grand Forks’ treatment plant — significantly larger than other prospective industrial reuses discussed previously — and Mackey said investors will not commit to the multibillion‑dollar project without water supply certainty.

Council approved the extension unanimously with one member recorded as dissenting on the motion (Osovski recorded a dissent). Staff noted that the city is not financially committed by the LOI extension and that the LOI preserves the opportunity to discuss treated wastewater reuse, potable and stormwater arrangements if and when the project advances.