BISMARCK, N.D. (AP) -- The North Dakota Industrial Commission has awarded a $1 million grant for a project that would turn natural gas into farm fertilizer.

The grant awarded to N-Flex LLC last week is financed by oil and gas taxes.

Natural gas is a byproduct of oil production. About a third of the gas produced in North Dakota is burned off and wasted because the pipeline networks needed to move the gas haven't been built yet.

The company says the project would use natural gas directly from a well to make anhydrous ammonia fertilizer. It would use a portable manufacturing plant that would be installed at the well site.

Copyright 2012 The AP.