C-K examining chemical plant possibilities

Chatham-Kent is taking a critical step in looking for a potential location of a fertilizer plant that could result in 400 jobs.

Chatham-Kent Director of Planning Services Ralph Pugliese said the municipality is seeking an RFP (request for proposal) for a firm to develop a market assessment for a natural gas-based chemical processing facility.

In addition to the market assessment, the project involves “identifying suitable locations, recommending appropriate planning policies and conducting environmental assessments and related work required to establish the principle of land use for the introduction of natural-gas-based chemical processing and related uses, including nitrogen-based fertilizer production, but excluding petroleum-based products.”

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The RFP also states that the completed project will include “a positioning statement that would allow the Municipality of Chatham-Kent to present a strong business case to potential investors and funding organizations.”

Pugliese said the work is a necessary step before the municipality can determine whether a fertilizer plant should be located here.

“This is really the step which has to take place, from a planning perspective, before anything else is done,” he said. “The information in the report will guide our actions going forward.”

Pugliese said part of the process involves public consultation.

“Our aim is to be as transparent as possible,” he said. “We want residents to be fully informed so we can gather input.”

The RFP closes June 11 after which qualifying bids will be assessed. Although the RFP states that respondents “should propose an aggressive, but realistic schedule,” Pugliese said the exact timing of the work has to be negotiated.

Michael Burton, Chatham-Kent’s director of economic development, said although he is aware of the RFP, it isn’t necessarily tied to any particular firm.

Burton said, during his recent trip to China, Chatham-Kent officials had high-level meetings with two multi-billion-dollar firms from that nation, as well as a Canadian investor.

“I’m hopeful that we will have a return visit within the next few weeks and we will continue to pursue a variety of opportunities,” he said.

In December of last year, council received a report from the economic development department which pegged construction of a fertilizer plant at $1 billion or more and new tax revenue of $2-$3 million annually.