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CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it has determined that current economics are not sufficient to proceed with a gasification facility to supply coal-based syngas to our Kenai nitrogen facility.  The mothball of the facility will be completed shortly.

Agrium continues to advance other gasification opportunities and has a nitrogen off-take agreement with Faustina Hydrogen Products LLC in Louisiana, with an anticipated startup in 2011. In Alberta, Agrium is currently reviewing gasification opportunities of syngas derived from byproducts of bitumen upgrading. Additionally, Agrium continues to examine other gasification possibilities.

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 media release constitute forward-looking statements.  Such forward-looking statements involve known and unknown risks and uncertainties as well as various assumptions and business sensitivities, including those referred to in the management discussion and analysis section of the Corporation’s most recent Annual Report to shareholders as well as those risk factors described in the Corporation’s most recent Annual Information Form, 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.  Other factors that could cause actual results to differ materially from those in the forward-looking statements, include, but are not limited to, the future global supply, demand and price conditions for nitrogen, regional and global prices and availability for natural gas and oil, the results of the feasibility review described in this media release, risks associated with technology, plans to finance and construct the gasification facilities, performance of other parties, changes in environmental and other laws and regulations, regulatory approvals, other development and operating risks, and general economic, business and market conditions.  Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

FOR FURTHER INFORMATION:
Media Relations:
Lisa Parker, Manager, U.S. Government Relations
(907) 776-3275

Investor Relations:
Ashley Harris, Manager, Investor Relations
(403) 225-7437

Contact us at: www.agrium.com