Wednesday, January 20, 2010

Agrium enters into Agreement to supply urea for production of Diesel Exhaust Fluid

Calgary, Alberta –Agrium Inc. (TSX and NYSE: AGU) announced today that it has entered into an exclusive agreement to supply Diesel Exhaust Fluid (DEF) grade prilled urea from its Borger, Texas nitrogen facility for the production of DEF with Old World Industries. Old World Industries is a privately held corporation based in Northbrook, IL and is a leading manufacturer of antifreeze in the United States. Old World Industries is taking a leading role to establish DEF supply at a national level with its BlueDEF branded DEF. The tonnage supplied from the Borger facility will start from a small base and is expected to grow at a rapid rate over the next five to ten years.

DEF will be added to the exhaust gas of most heavy duty diesel engines made after Jan. 1, 2010. This is in response to the Environmental Protection Agency mandate to reduce harmful NOX emissions from diesel engines by over 90 percent. By using DEF, the NOX will be converted into innocuous nitrogen gas and water. The market for DEF across North America is expected to exceed 1.5 million tons of urea equivalent (1 billion gallons of DEF) by the year 2020.

About Agrium
Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.


About Old World Industries

For over 35 years, Old World Industries has been a leading producer, marketer and distributor of functional fluids for heavy-duty and automotive applications. The Northbrook, Illinois, company's PEAK® Performance Products lineup includes antifreeze, oil filters, motor oil, windshield wash, wiper blades, battery chargers, jump starters, power inverters and back-up cameras. Old World's other brands include SIERRA® antifreeze, Fleet Charge®, Final Charge® Heavy Duty Global Extended Life Antifreeze/Coolant, and HERCULINER® truck bed liner kits. More information is available at www.bluedef.com and www.oldworldind.com

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