Nitrogen+Syngas 367 Sept-Oct 2020
30 September 2020
Nitrogen Industry News
Nitrogen Industry News
SPAIN
Fertiberia to make ammonia from ‘green’ hydrogen
Spanish fertilizer producer Fertiberia is teaming up with energy firm Iberdrola to build Europe’s largest plant for generating green hydrogen for industrial use – in this case ammonia production. The 100MW solar plant and accompanying 20 MWh lithium-ion battery system and 20MW electrolytic hydrogen production system will be built at a cost of $174 million, and electrolyse water to produce 720 t/a of hydrogen. When fed into Fertiberia’s existing ammonia plant at Puertollano, 250km south of Madrid, the hydrogen will allow a 10% reduction in natural gas use by the plant, saving the company 39,000 t/a in annual CO 2 emissions. Start-up is planned for 2021. Fertiberia will also use electrolysis-generated oxygen as a raw material for nitric acid, which is used to produce ammonium nitrate at the site.
Iberdrola chairman Ignacio Galán said: “we are launching the first major green hydrogen project in Europe, demonstrating that thanks to renewables and technological innovation, it is possible to continue to meet the needs of the electrification and decarbonisation of our industry. The initiative shows the path and opportunities offered by the energy transition to develop innovative projects as the focus for industrialisation and employment in our country.” Fertiberia president Javier Goñi added: “The partnership with Iberdrola allows Fertiberia to take a further step in its ambition to become a european reference for sustainable solutions for agriculture and to lead the paradigm shift required for the energy transition in the chemical sector, thanks to the manufacture of green ammonia from domestic renewable energy sources.”
Annual hydrogen production in Spain is estimated at 500,000 t/a, mainly for use in the refining, chemical and fertilizer industries. Most of it is made from natural gas, and generates emissions of 5 milloin t/a of CO 2 /year. Annual global hydrogen production of 70 million t/a generates 830 million t/a of CO 2 , or around 2% of all global emissions. It is estimated that decarbonising global hydrogen production through the use of 100% renewable energy would increase global electricity demand by around 10%.
DENMARK
Topsoe extends scope of its ClearView online service
Haldor Topsoe and BASF have entered into an agreement to offer ammonia producers new optimisation possibilities via the inclusion of BASF’s simulation tool, OASE connect, ® in Topsoe’s ClearView Ammonia ™ connected service solution. The OASE connect simulation tool processes near real-time data from BASF CO 2 removal sections, allowing the ClearView Ammonia package to give customers greater insight into the status and optimisation potential of their ammonia plant operation.
OASE white ® is an amine-based gas treatment technology for mixtures containing hydrogen and/or carbon monoxide. Clear-View, launched last year, is a connected plant service that uses continuous upload of data to offer plant owners improved asset utilisation, energy savings, and less unplanned downtime. Based on a stream of comprehensive data from the plant, modelling and analytical software continually suggests optimisation opportunities and proactively alerts plant personnel of operational issues.
“This agreement is a great step forward for ClearView, enabling us to offer a complete connected services solution that adds even more value for ammonia producers. BASF has been our preferred supplier for CO 2 removal technology in our numerous ammonia projects over the years, and we have great trust in their expertise,” says Michael Fjording, Connected Services Director, Haldor Topsoe.
Report on ammonia as a marine fuel
A consortium of companies including Alfa Laval, Hafnia, Haldor Topsoe, Vestas, and Siemens Gamesa have issued “Ammonfuel – an industrial view of ammonia as a marine fuel” – a report intended to provide a comprehensive and up-to-date overview of the applicability, scalability, cost, and sustainability of ammonia as a marine fuel. The report describes ammonia as an attractive and low risk choice of marine fuel both in the transition phase towards a more sustainable shipping industry and as a long-term solution, based on the partners’ industrial expertise and input from a list of competent industrial players. The report covers all aspects of the process of turning ammonia into marine fuel, including conventional and future green ammonia production, experience regarding safety with ammonia from other areas, the logistics of providing ammonia where it is needed, and the application on board the ship. It focuses on cost, availability, safety, technical readiness, emissions, and the elimination of risks related to future environmental regulations and requirements.
JAPAN
More interest in ammonia as a shipping fuel
Japanese shipping firm NYK Line, shipbuilder Japan Marine United and classification society Nippon Kaiji Kyokai have signed a joint research and development agreement to build an ammonia-powered ammonia gas carrier and an ammonia floating storage and regasification barge (A-FSRB) for commercial use. The A-FSRB would be the world’s first barge equipped with a floating storage and regasification facility exclusively for ammonia, according to NYK Line. The study will focus on developing a liquefied ammonia gas carrier, using ammonia as the main bunker fuel. The potential new vessel would ensure zero emissions, by using CO 2 -free hydrogen as a raw material for ammonia production, in order to help meet International Maritime Organisation targets to reduce CO 2 emissions by at least 40% by 2030 and by 70% by 2050 compared with 2008 levels. The IMO is scheduled to finalise its GHG strategy in 2023.
The companies will also look at methods for the mass transportation and stable supply of ammonia, expecting demand growth from Japanese power firms to couse the fuel at coal-fired power plants. The Japanese government is promoting the use of ammonia as a power generation fuel, saying a 10-20% mix at a coal-fired power plant would not require large-scale refurbishment of the facility. Japan’s Toyota Energy Solutions developed a 295KW ammonia-fired gas turbine unit in April last year.
RUSSIA
Dorogobuzh completes ammonia revamp
Acron’s Dorogobuzh plant has completed a revamp of the site’s ammonia plant, at a cost of 5 billion rubles ($68 million). As a result of the work, plant capacity has been increased from 1,740 t/d to 2,100 t/d, generating an additional 130,000 t/a of ammonia, while lowering natural gas consumption by 7% per tonne of ammonia produced. The project was designed by LLC Novgorodsky GIAP, and the work was carried out by Dorogobuzh and Acron employees and 60 contractors from around the country, who brought in over 1,100 specialists and 50 pieces of equipment.
The Dorogobuzh ammonia plant in Russia’s Smolensk region was originally commissioned in December 1979 with a design capacity of 450,000 t/a, and forms one of Acron Group’s sites across Russia and beyond, including PJSC Acron at Veliky Novgorod and phosphate production at Murmansk (JSC NWPC). As well as these, Acron has interests in potash production, fertilizer transport and logistics, and the company also owns a minority 19.8% stake in Poland’s Grupa Azoty, one of the biggest producers of chemicals in Europe.
Uralchem resumes production at Berezniki
Uralchem’s Azot Branch at Berezniki says that it resumed full-scale production of nitrogen at the site on July 30th, following three weeks of shutdown. The company shut down all operations on July 7th following the detection of a “drastic” increase of chloride content in the Kama River, from which process feed water is taken. Uralchem says that the contamination threatened safe operation of the plant’s process equipment. After 10 days, the content of chlorides dropped to acceptable levels at the intake point, allowing the company’s management to make a decision to resume production. The re-start proceeded in stages, beginning with ammonia production at Unit 1 followed by downstream process units including granular ammonium nitrate and non-concentrated nitric acid production. Finally, Unit 2 producing ammonia, concentrated nitric acid, nitrite and nitrate salts, was restarted. Uralchem says lost production due to the unplanned shutdown amounted to about $8 million, and the company has raised an urgent appeal to local environmental authorities to investigate and deal with the dumping of chemicals that caused the river pollution.
Meanwhile, Uralchem has launched a disclosure motion in a US court, allowing evidence to be taken in support of lawsuits relating to alleged theft of profits from Togliattiazot y former executives. Uralchem bought into Tolgiattiazot in 2008, later increasing its stake to 10%, but became suspicious of transactions involving Nitrochem Distribution AG. The case has been pursued through courts in Ireland, Cyprus and Russia, and has involved a protracted legal wrangle with Togliatti owner and former CEO Sergei Makhlai and his father Vladimir.
UKRAINE
OPZ extends gas tolling while seeking new tenders
Ukraine’s Odessa Port Plant (OPZ) has extended its gas tolling arrangement with Agro Gas Trading (AGT) for two months from the 30th June, allowing the plant to remain operating during July and August. At the same time, it is in negotiations with a shortlist of three potential suppliers for the subsequent ten month period, including AGT, together with New York registered IBE Trade Corp and Geneva-based Maddox SA.
SAUDI ARABIA
Topsoe selected for green ammonia project
Haldor Topsoe’s technology has been selected to form part of a $5 billion green hydrogen project in Saudi Arabia’s Neom ‘smart city’ development. Neom, a pet project of crown prince Mohammed bin Salman, is a $500 billion development to build “a living laboratory and a hub for innovation” based on 5G technology, with an emphasis on high-tech and digital industries such as robotics and AI. Bechtel has been retained to design, build a project manage the construction of the city’s transport, power and water infrastructure. Futuristic features for the city are said to include an entirely renewable energy supply using solar and wind power and power storage, an “artificial moon”, phosphorescent beaches and “flying taxis”. The city will be built in the Tabuk region, on the Red Sea near Saudi Arabia’s border with Jordan.
As part of the project, 4 GW of renewable energy will be used to produce 650 t/d of hydrogen. This will then be converted into 3,500 t/d (1.2 million t/a) of ammonia using Topsoe technology. Topsoe partner Air Products will be the exclusive off-taker of the green ammonia, which will be transported “around the world” to be converted back into carbon-free hydrogen at local hydrogen refuelling stations. Air Products’ focus is to supply hydrogen fuel cell buses and trucks with carbon-free hydrogen by 2025, with distribution to end customers representing an additional investment of $2 billion by Air Products. When implemented, the project will avoids emissions from over 700,000 cars, representing the equivalent of over 3 million t/a of CO2 .
“We are honoured to be part of this innovative world-scale project to reduce carbon emissions. Topsoe is focused on improving energy efficiency in today’s technologies while developing the solutions of the future. This is a great step ahead,” said Amy Hebert, Deputy CEO and EVP, Chemicals, Haldor Topsoe.
PAKISTAN
Restart for Agritech urea plant
Pakistan’s Agritech Ltd, formerly known as Pak-American Fertilizers, says that it has begun urea production at its Tara plant 100 km southwest of Islamabad in early August. The plant was forced to shut down on December 19th 2019 due to lack of availability of natural gas. It is now one of two plants that the government has given an allocation of regasified imported LNG at a subsidised tariff in order to increase domestic urea inventories. Local press reports that the 1,300 t/d urea plant is being supplied with 28.5 million scf/d of gas at a rate of $4.48/MMBtu for three months. The other plant that is being supplied with gas at the concessionary rate is Fatima Fertilizers, with 300 t/d of urea capacity.
Pakistan’s Ministry of Industries and Productino estimates that inventories of urea will fall below 200,000 tonnes during the period December 2020 – February 2021, as urea demand increases due to an agricultural subsidy increase for fertilizers, seeds, pesticides and tractors to boost domestic crop production.
AUSTRALIA
Incitec Pivot warns of threat from high gas prices
Australian explosives and fertilizer manufacturer Incitec Pivot has warned that its Gibson Island plant in Queensland remains under threat from high gas prices. The company says that it aims to find an additional A$40 million in annual cost savings, but that the site’s future is uncertain beyond 2022, when the current gas supply contract ends. In a briefing to investors, Incitec Pivot’s fertilizers division Stephan Titze said: “Gibson Island continues to be challenged with high cost of gas on the east coast of Australia, lower global urea prices and reduced demand for our big end products as the drought in the cotton areas and low water levels in cotton dams continued in northern NSW and south east Queensland. We are working hard to secure economical gas to continue the operation of our Gibson Island plant post2022. It’s a great site with a very strategic location for imports and to serve adjacent markets, which gives us the option of importing nitrogen products in case we cannot secure economical gas.”
In spite of plentiful gas on the west side of Australia, a lack of east-west pipeline capacity means that gas prices in Queensland remain high, as they are tied to the state’s LNG exporters. Most of the gas produced in Queensland is exported to fulfil LNG contract requirements, and while the remainder can be sold domestically, domestic consumers must therefore compete with global LNG prices, bringing Queensland gas prices to around US$7.00/MMBtu for much of last year.
INDIA
Government seeks to speed up coal gasification project
Following a review of progress with the Talcher coal to urea project, Coal Minister Pralhad Joshi says that he has asked Talcher Fertilizers Ltd to “expedite” completion of the coal gasification plant. Talcher Fertilizers Ltd is a joint venture between state owned companies the Gas Association of India Ltd, Coal India Ltd, Rashtriya Chemicals and Fertilizers Ltd and the Fertilizer Corporation of India Ltd (FCIL). Based in India’s coal-rich Odisha state, the coal gasification-based ammonia-urea project has a design capacity of 2,200 t/d of ammonia and 3,850 t/d of urea, using a mix of local coal and petroleum coke as feedstock. It will also recover 100 t/d of elemental sulphur as a by-product. Work is reportedly around 60% complete on construction of the plant, which is expected to come on-stream in 2023. Three other gas-based plants are also under construction or in commissioning, at Ramagundam in Telegana, Gorakhpur in Uttar Pradesh, and Sindri in Jharkahand state, which the government reports to be 99.6%, 88% and 78% complete, respectively. Although delayed by the Covid-19 outbreak, Ramagundam is still expected to commission this year, and Gorakhpur and Sindri in 2021.
NIGERIA
Dangote still aiming for start-up this year
Saipem says that the new Dangote urea plan t is still likely to be commissioned this year. Saipem is the EPC contractor for the project, as well as supplying the urea technology for the plant, in the Lekki district of Nigeria’s capital Lagos. The complex includes two ammonia-urea trains with a combined capacity of 3 million t/a. Saipem says that the plant is mechanically complete and test runs began in March, but were hampered by the Covid-19 outbreak, which prevented engineers flying from Italy to help with commissioning. The company says that it is now making special arrangements, including setting up dedicated flights for vendors and suppliers to enable it meet the completion deadline, and that the plant will be operating by the end of 2020.
CHINA
Contract awarded for melamine plant
Eurotecnica says that it has successfully concluded negotiations with the Chinese ShaanXi Qing Shui Yin Quan Coal Industry Development Co., Ltd. with the award of a license to build a Euromel® technology melamine plant. The new plant will have a nameplate capacity of 180 t/d (60,000 t/a) and will be based on 4th generation Euromel technology, featuring a single-train arrangement as well as the traditional total-zero-pollution concept. The award marks the 23rd license for Eurotecnica of its Euromel process, and will bring total licensed nameplate capacity to more than 800,000 t/a, making it the only technology selected in the Middle-East and the leading technology in Asia and the Americas.
OMAN
Omifco signs three year offtake deal
Omani energy company OQ, via its commercial arm OQ Trading, has signed a three-year agreement with the Oman India Fertiliser Company (Omifco) to offtake and trade one million t/a of granular urea. OQ’s supply and trading business will take the urea from Omifco’s terminal in Sur in bulk carriers and deliver it to end-users in international markets such as India, Sri Lanka, Pakistan, the United States, Brazil, Vietnam, Thailand and China, according to OQ. The new agreement between the two companies began on August 1st, and the first vessel, with 49,500 tonnes of urea, departed for Brazil on August 2nd; the first ever shipment from Oman to Brazil. OQ has in turn struck a deal with Swiss-based agri-business trader Ameropa for a portion of the offtake, and the shipment to Brazil was via Ameropa.
The move comes as Omifco’s original 15 year offtake deal, beginning in July 2005 when the plant first came on-stream, came to an end. Omifco, with capacity to produce 1.65 million t/a of urea and 350,000 t/a of excess ammonia, is 50% owned by the Omani government and 25% each by Indian state-owned fertilizer cooperatives the Krishak Bharati Cooperative and Indian Farmers Fertilisers Cooperative, and the original offtake agreement specified that the plant’s output would go to India for sale by these two companies. It was founded as a way for India to take advantage of cheap natural gas in the Middle East for urea production.
“Omifco has positioned itself strategically in the urea and ammonia market globally, and we are quite proud of that. Now we have a great opportunity ahead of us; targeting new markets for the Omani urea,” said Talal al Awfi, chief executive – commercial, OQ.
“We are pleased with the achievements that Omifco has accomplished during its first 15 years. Omifco has enhanced its mandate and enabled its growth; not just as a supplier for its founding companies, but also to offer high quality urea and ammonia products to the rest of the world,” said Hilal al Kharusi, chairman of Omifco.
SINGAPORE
BW LPG looking to ammonia as a shipping fuel
BW LPG, the largest supplier of LPG shipping vessels in the world, has told Lloyd’s List that the company is looking to use ammonia as a pathway to carbon neutral and ultimately zero carbon fuels. In an interview, BW LPG chief executive Anders Onarheim said that while the company is currently converting its fleet to run on LPG as a fuel, to meet present IMO fuel quality regulations, the future conversion from LPG propulsion to ammonia would not require a large investment, although he also said that there was “still a long way to go” before it could be scaled up to commercial viability.
Mr Onarheim said the company is working with MAN Energy Solutions, which is also retrofitting its VLGCs with its two-stroke, dual-fuel engines, for ammonia-fuelled engines along with an internal team. Ammonia is regularly carried in LPG tankers and so such vessels would have access to a ready source of fuel.
