Ammonia, Natural Gas, Fertilizer, and The Bakken

RBN Energy: another outstanding article.

The N-Flex “mobile” ammonia plant idea is more interesting if the technology can be scaled to take advantage of natural gas that is otherwise going to waste in North Dakota. The economics of small-scale production may be quite different and the resulting output will require transportation to reach the farm market. The hefty margins for large-scale production will probably be reduced considerably by these inefficiencies. However, if the capital costs of production on this small scale are more palatable than for a large plant, the idea could create a niche market. The success of the idea probably still depends on ammonia prices being driven by high crop prices rather than following the price of natural gas. Large-scale producers are unlikely to stand idly by and watch their market share disappear either. 

It doesn't take a rocket scientist or a Harvard MBA to see the opportunity for North Dakota entrepreneurs.