Fertilizer Industry News

Fertilizer Industry News

UNITED STATES

CF Industries commits to net-zero

Illinois-headquartered CF Industries has made a long-term commitment to low-carbon ammonia production and net-zero emissions.

The leading nitrogen fertilizer manufacturer and the world’s largest ammonia producer has pledged to completely decarbonise its global production base by 2050. In a landmark statement on 29th October, CF announced:

A board-authorised ‘green’ ammonia project to be built at the large-scale Donaldsonville nitrogen complex in Louisiana

Carbon dioxide (CO 2 ) sequestration and carbon abatement projects to enable the production of low-carbon ‘blue’ ammonia

The direct linking of executive compensation to CF’s environmental, social and corporate governance (ESG) goals – with these including a substantial reduction in carbon emissions across its global network

A pledge to reduce CO 2 emissions over time – initially a 25 percent reduction in emissions intensity by 2030 followed by emissions cuts to reach net-zero by 2050.

“The world needs clean energy – and hydrogen is a key to meeting this need. Low-carbon ammonia is the critical enabler for storage and transport of hydrogen and thus has a major role to play,” said Tony Will, CF’s president and CEO. “Today’s commitment, to decarbonize the world’s largest ammonia production network, positions CF Industries at the forefront of clean hydrogen supply. Due to our unparalleled manufacturing and distribution network, our competitive advantage in producing low-carbon ammonia at scale is measured in terms of years and billions of dollars.”

Green ammonia is manufactured using hydrogen generated by renewable electricity. This offers a carbon-free alternative process to conventional steam methane reforming (SMR) from natural gas which is in widespread use today.

CF’s initial board-approved project will produce approximately 20,000 t/a of green ammonia at its flagship Donaldsonville nitrogen complex. To generate carbon-free hydrogen, the company will install a state-of-the-art water electrolysis system at the Louisiana site. This will then be supplied as feedstock to the existing plant to produce green ammonia. The costs of this initial project will be met from within the CF’s existing capital expenditure, which typically ranges from $400-$450 million annually.

Donaldsonville is the world’s largest nitrogen complex, with six world-scale ammonia plants, five urea plants, four nitric acid plants, three urea ammonium nitrate (UAN) plants and a diesel exhaust fluid (DEF) plant.

As well as focussing on ‘green’ ammonia production via a carbon-free process, CF is also looking to produce low-carbon ‘blue’ ammonia in future. This will be produced by the conventional SMR process but with CO 2 removed through carbon capture and sequestration (CCS) and/or other certified carbon abatement projects.

Over time, CF estimates that the implementation of CCS and carbon abatement projects across its production sites could eventually produce approximately 3.5 million tons of low-carbon ammonia annually – around one-third of its ammonia production capacity – without affecting its current product mix.

To execute these green and blue ammonia projects, CF will collaborate with leading technology providers and has already signed memoranda of understanding with Germany’s thyssenkrupp and Denmark’s Haldor Topsoe. It is also in discussions with global energy utilities and maritime shipping companies who are looking to source low-carbon ammonia fuel.

CF expects both green hydrogen and green ammonia to be critical contributors to achieving net-zero carbon emissions globally by 2050. Hydrogen will meet approximately 20 percent of the world’s energy need by 2050, according to some industry experts, up from less than one percent today. Ammonia, because it contains three-parts hydrogen to one-part nitrogen, offers an efficient way of transporting and storing hydrogen – as well as being a fuel in its own right.

“Our existing scale and commitment to produce green and low-carbon ammonia establishes CF Industries as the clear leader in providing clean fuels for a sustainable world, while also providing a growth platform to drive long-term shareholder value,” commented Tony Will.

CF’s board has set up a new committee, the Environmental Sustainability and Community Committee, to oversee all aspects of the company’s progress toward net-zero carbon emissions. It will also liaise with the local communities in which CF operates.

CF separately announced a $42.4 million investment in nitric acid production at its Donaldsonville complex. The project will increase the concentration of industrial-grade nitric acid generated at the site’s 600,000 t/a capacity ‘Nitric Acid No. 4’ plant from 60 percent to 65 percent. The investment also covers the addition of an air chiller and the installation of extra product storage, as well as new rail car and truck loading capabilities.

“CF Industries is pleased to continue our long history of investing in and expanding our Donaldsonville Nitrogen Complex and creating jobs in Louisiana,” said Tony Will. “The capital investment we are making to enhance nitric acid production at the site will further expand Donaldsonville’s production flexibility and enable us to meet strong demand for the product, particularly from Louisiana’s chemicals industry.” n

Large-scale Nebraska green ammonia plant

Technology company Monolith Materials has unveiled plans to build a 275,000 t/a capacity carbon-free ammonia plant in Nebraska. This will incorporate the company’s proprietary methane pyrolysis process.

Monolith, founded in 2012, owns a patented process for converting natural gas into carbon black and hydrogen. This produces around three tonnes of solid carbon per tonne of hydrogen, thereby completely avoiding CO 2 emissions.

The new plant – Olive Creek 2 – will be located in Hallam, Nebraska, in the US Corn Belt, a vital grain-growing region that consumes over 1.7 million t/a of ammonia. Monolith says the plant – by integrating a new 180,000 t/a carbon black unit – will avoid the generation of one million t/a of carbon dioxide during the production of 275,000 t/a of ammonia. The plant will use 100 percent renewable electricity for its power train. Construction is expected to begin in 2021.

“This is great news for 21st-century agriculture, where we face the challenge of decarbonising age-old processes at the same time as we must scale up production to keep pace with population growth,” said Trevor Brown, executive director of the Ammonia Energy Association. “We need to deploy every available technology to accelerate this energy transition and Monolith’s methane pyrolysis process has potential to deliver low-carbon ammonia in the right place at the right scale and at the right cost.”

The company’s first commercial-scale plant, Olive Creek 1, is currently in commissioning and will produce approximately 14,000 t/a of carbon black. As a next step, Monolith is planning to use hydrogen generated at the site to produce ammonia cleanly – and potentially a wide range of other products that also require hydrogen.

“Since its inception, Monolith Materials has been committed to developing solutions that are environmentally transformative, technologically advanced and financially viable,” said Rob Hanson, CEO of Monolith Materials and the company’s co-founder. “Being able to produce one of the world’s most essential products in a way that is carbon-free is a significant step not only for our company, but for the industry and even society as a whole.”

New fertilizer technology prize fund

The Fertilizer Institute (TFI) has joined together with the US Environmental Protection Agency (EPA) and the US Department of Agriculture (USDA) to announce two new competitions. Winners will receive up to $10,000 in prize money or help with greenhouse and field trials.

The aim is to “accelerate the development of innovative fertilizer product technologies and to increase the use of existing enhanced efficiency fertilizers (EEFs) that maintain or increase crop yields and reduce environmental impacts to air, land, and water”, according to TFI.

The EPA and USDA launched the two competitions at the end of August:

Firstly, the EEFs: Environmental and Agronomic Challenge. This will identify existing EEFs currently on the market, or near-market, that meet or exceed certain environmental and agro-economic criteria.

Secondly, the Next Gen Fertilizer Innovations Challenge. This will identify concepts for novel fertilizer technologies that are not yet near-market, but show great potential for reducing the environmental effects of modern agriculture, while maintaining or increasing crop yields. They may include EEFs and other product technologies used alongside or in combination with commercial fertilizers.

Winners of the two competitions will be announced in winter 2021.

Winners of the Next Gen Fertilizer Innovations Challenge will receive a cash prize of at least $10,000 from a total prize purse of $65,000. They will also be invited to a showcase event to share ideas and spur innovation.

There is no cash prize for winners of the EEFs: Environmental and Agronomic Challenge. Instead, they will receive recognition from the EPA and USDA and benefit from a full scientific evaluation. They will also receive help in proceeding to greenhouse trials and eventually field trials, subject to positive results and available funds.

“Today’s fertilizer industry is built upon decades of innovation that… has helped farmers increase yields while fine tuning their fertilizer use,” said Corey Rosenbusch, TFI president and CEO. “However, there is always improvement to be made, which is why we are excited to partner with the federal government and others in this challenge to spur the industry’s creativity in finding sustainable solutions for tomorrow’s fertilizer industry.”

The two competitions were developed with input from corn grower representatives, individual fertilizer companies, university researchers, and environmental and industry groups. As well as working with TFI, the EPA and USDA are also collaborating with the International Fertilizer Development Center (IFDC), The Nature Conservancy (TNC) and the National Corn Growers Association (NCGA).

“The shared goal here is to accelerate the development of next-generation fertilizers for corn production that can either maintain or increase crop yields while reducing environmental impacts to our air, land, and water,” said EPA administrator Andrew Wheeler.

“USDA is committed to encouraging the development of new technologies and practices to ensure that US agriculture is socially, environmentally, and economically sustainable for years to come,” said US Secretary of Agriculture Sonny Perdue. “This challenge will stimulate innovation and aligns with USDA’s Agriculture Innovation Agenda announced earlier this year.”

SPAIN

Fertiberia targets green ammonia exports

Fertilizer producer Fertiberia and power company Iberdrola have announced a new e1.8 billion ($2.1 billion) partnership to produce green ammonia on a large scale.

The Spanish companies unveiled a new large-scale collaboration on the decarbonisation of ammonia production at the end of October. The two partners have set themselves the goal of making Spain a leading exporter of ammonia derived solely from renewable electricity.

Earlier this year, Iberdrola and Fertiberia announced a e150 million ($176 million) project to build the largest industrial green hydrogen project in Europe, located next to Fertiberia’s Puertollano ammonia plant (Fertilizer International 498, p8). The new 20MW hydrogen plant is expected to become operational in 2021.

But the two companies have now confirmed they will expand their partnership by pursuing three additional projects between 2023 and 2027. These combined would deliver 800 megawatts of green hydrogen generating capacity, enough to decarbonise 25 percent of Spain’s hydrogen production. This amount of installed capacity would also contribute 20 percent towards the Spanish government’s green hydrogen capacity target of 4 gigawatts by 2030.

The plan is to locate one of the projects in the town of Palos de la Frontera, close to a maritime terminal that is already able to export ammonia.

“The production of green hydrogen through electrolysis, using renewable energy, is a key factor in the path toward achieving climate neutrality by 2050,” said Iberdrola’s chair and CEO Ignacio Sanchez Galan. “High-temperature industrial processes, or heavy transport, are hard to electrify for technology reasons.”

NETHERLANDS

Large-scale electrolyser project for Sluiskil

Norway’s Yara International has linked-up with Danish wind power company Ørsted on a new green ammonia project in the Netherlands.

The partners have plans to develop a 100 MW electrolyser to generate green hydrogen. The idea is to partly replace fossil fuel feedstock at Yara’s Sluiskil ammonia plant. Renewable hydrogen generated by the project could generate 75,000 t/a of green ammonia per year, equivalent to 10 percent of the capacity of one of Sluiskil’s ammonia units. The proposed electrolyser will be powered by Ørsted’s 750MW Borssele I and II offshore wind farms.

Yara and Ørsted will be seeking public funding to help co-finance, develop and build the electrolyser. The partners say they hope to make a final investment decision in late 2021 or early 2022, subject to sufficient funding and a confirmed business case. This could see the project become operational as early as 2024/25.

BRAZIL

ICL buys Fertiláqua

Israel’s ICL has agreed to buy Fertiláqua from Aqua Capital, a leading ag and food private equity firm, for approximately $120 million.

ICL announced a definitive agreement to acquire the Brazilian specialty plant nutrition company in October. The purchase will expand ICL’s speciality product portfolio, grow its customer base and provide an in-country production presence in Brazil, one of the world’s fastest growing agricultural markets.

Fertiláqua sells over a 100 different plant nutrition, biostimulant, soil revitalisation and seed treatment products, including the market-leading Aminoagro, Dimicron and Maximus brands. These are applicable to all of Brazil’s key crops, including soybeans, corn, sugarcane, cotton, coffee, fruits and vegetables.

Fertiláqua has over 350 employees, two production sites and two research and development centres. The company, which has been growing at more than 15 percent annually, has a presence in 24 Brazilian states and serves over 500 customers, including ag retailers, cooperatives and large farms.

Raviv Zoller, ICL president and CEO, said: “The acquisition of Fertiláqua is an important part of the growth strategy of our crop nutrition business. Expected growth… will be supported… by increased demand for high-end specialty fertilizers and our focus on growth markets. Fertiláqua gives ICL a significant foothold in a major market, where demand growth for specialty plant nutrition products is increasing rapidly.”

ICL expects the acquisition to close by early 2021, subject to customary conditions.

Araucária Nitrogenados up for sale

Petrobras has announced the sell-off of Araucária Nitrogenados, its fertilizer producing subsidiary located in the state of Parana.

Araucária has the capacity to produce 1,975 t/d of urea and 1,303 t/d of ammonia, but has been shut for economic reasons since January.

Petrobras hopes to sell 100 percent of its stake in Araucária. The divestment is part of a wider strategy by the state-owned oil giant to cut costs and improve its capitalisation. The company’s financial situation has worsened this year due to low oil prices and the Covid-19 pandemic. It currently carries around $87 billion in outstanding debt.

TRINIDAD & TOBAGO

Nutrien closes ammonia plant indefinitely

Nutrien indefinitely closed of one of its four ammonia plants in Trinidad in September.

The Canadian fertilizer giant blamed the suspension of operations at its PCS-03 plant on market conditions and lower global ammonia prices. The closure is being accompanied by a 15 percent reduction in Nutrien’s workforce on the island from October.

The company said in a statement: “Two of our ammonia plants and the associated urea facility will continue to operate at maximum capacity. Our other plant [PCS02], which was taken offline in May 2020 due to market conditions, is expected to come back online as market conditions improve. The urea plant at the site will continue operating at normal rate.”

Nutrien said the closure would not affect its existing contractual agreements.

WEST AFRICA

Dangote builds Nigerian NPK plant

Dangote started constructing a half a million tonne capacity NPK blending plant at its Lekki fertilizer complex in Lagos state in October.

Urea sourced on-site from Dangote’s new production plant will be blended with imported phosphates and potash. The company’s massive new 1.3 million t/a capacity urea plant in Lagos state is now scheduled to enter production this November – while the NPK blending plant is expected to come on stream by October next year.

Nigeria moved to ban NPK imports at the end of 2018. The country has refurbished and built a large number of blending plants over the last 2-3 years as part of an NPK self-sufficiency drive (Fertilizer International 498, p15). It already possesses some four million t/a of blending capacity, according to analysts Argus, although actual output from these is reportedly running at or below 50 percent of capacity.

Nigeria currently produces around 1.75 million tonnes of fertilizers annually, estimates Argus, mostly domestically-produced urea and blended NPKs. Domestic NPK blending still requires the import of diammonium phosphate (DAP) and muriate of potash (MOP) in large volumes.

Better fertilizer access in Côte d’Ivoire and Ghana

The Africa Fertilizer Financing Mechanism (AFFM) and OCP Africa are teaming-up to increase access to fertilizers in Côte d’Ivoire and Ghana.

In October, the African Development Bank (AfDB) gave approval for the AFFM to participate in a multi-million dollar trade credit guarantee project with OCP Africa.

This is designed to reduce agricultural supply risks and improve access to quality inputs, including fertilizers, in Côte d’Ivoire and Ghana. OCP Africa and the AFFM will each contribute $2 million in trade credit guarantees.

The three-year project, which will run from 2020-2023, will build on OCP Africa’s existing Agribooster initiative. The main objectives are to improve smallholder access to high quality and affordable agricultural inputs, and also provide training in good agricultural practices. The project will support 430,000 smallholder farmers in the two West African countries, including 104,000 women.

By improving crop productivity, project activities are expected to help boost rice and maize yields by 35 percent in Ghana, and rice yields in Côte d’Ivoire by 30 percent.

Lahcen Ennahli, OCP Africa’s senior vice president for West Africa, said: “The partnership with the African Development Bank will scale up and expand activities implemented under the Agribooster Initiative. We believe at OCP Africa that this initiative will… incentivize other private and development partners to enter into similar risk-sharing agreements.”

Martin Fregene, director of agriculture and agro-industry at the AfDB, said. “[We are] pleased to partner with OCP Africa to achieve the increased agricultural productivity objective of the bank’s Feed Africa Strategy.”

“Through this project, the Africa Fertilizer Financing Mechanism is achieving its mission… to achieve the African Union target of application of at least 50 kg of fertilizer nutrients per hectare on the African continent,” said Marie Claire Kalihangabo, AFFM coordinator.