CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it has signed a 15-year offtake agreement with Faustina Hydrogen Products LLC (FHP).  The offtake agreement provides Agrium with competitively priced nitrogen for our customers with strategic access to all modes of transport to domestic customers, including barge, pipeline and rail as well as deep-water access for possible exports.  The agreement provides that Agrium will purchase 40 percent of the approximately 1.3 million tons of anhydrous ammonia that would be produced annually as part of the gasification facility.  Agrium also has the option to obtain a sufficient supply of carbon dioxide for the potential development of a large-scale facility for upgrading ammonia to UAN/urea.  The agreement is subject to various conditions, including among others, the ability by FHP to obtain adequate financing to construct the facility and the successful completion and startup of the project.  Assuming financing is obtained prior to the end of the calendar year, FHP expects the project to be in operation by late 2010. 

About Agrium
Agrium Inc. is a major Retail supplier of agricultural products and services in North and South America, a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through our Advanced Technologies business unit.  Agrium’s strategy is to grow across the value chain through acquisition, incremental expansion of its existing operations and through the development, commercialization and marketing of new products and international opportunities.  Our strategy places particular emphasis on growth opportunities that both increase and stabilize our earnings profile in the continuing transformation of Agrium.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements.  Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation’s most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, FHP’s ability and plans to complete project financing as anticipated, changes in development plans, capital construction costs, construction progress, and potential delays in building the facility and related infrastructure, availability of equipment and labor, performance of other parties, risks associated with technology, general economic, market and business conditions, weather conditions, regional and global prices and availability of feedstock, actions by governmental authorities, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof.  Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

- 30 -