Grant delayed to turn natural gas into fertilizer

The state Industrial Commission on Monday asked the project's developer for more information about its financial assumptions and feasibility.

The money would come from a state research fund that is financed by oil and gas taxes. The proposed grant would take a sizable chunk of the $2.7 million available.

"It's a million dollars. That is real cash," Attorney General Wayne Stenehjem said.

Stenehjem, Gov. Jack Dalrymple and Agriculture Commissioner Doug Goehring make up the Industrial Commission, which oversees the disbursements of state research funds for oil and coal projects.

Neil Cohn, founder of the project's developer, N-Flex LLC, said it would test the use of a portable unit to take unprocessed natural gas and use it to make anhydrous ammonia. The unit would be located at the well site.

The technology has been in use for years, Cohn said. However, it needs field testing in North Dakota's harsh climate, and it is unusual to use unprocessed natural gas to make fertilizer, he said.

The process also would separate more valuable natural gas liquids, such as butane, from the gas itself, Cohn said.