Nitrogen Industry News

Nitrogen Industry News

DENMARK

MoU for power to ammonia facility

Copenhagen Infrastructure Partners (CIP) has unveiled plans to build Europe’s largest power-to-ammonia facility at the Danish port of Esbjerg, based on electricity from offshore wind turbines. The company said the plant will consist of 1GW of electrolysis capacity, capable of supplying sufficient hydrogen to produce 300,000 t/a of ammonia, and that the ammonia will be used as both as agricultural fertiliser and as fuel for the shipping industry. Excess heat generated in the process would be used to provide heating for around one third of local households in communities around the plant, to be sited on the west coast of Denmark. The company has signed a memorandum of understanding for the project with companies from both the agriculture and shipping sectors, including Danish Crown, Arla, DLG, Maersk and DFDS Seaways. CIP anticipates that it would cost approximately $1.2 billion to build the facility. They are currently seeking investors for the project and expect that the investment decision would be reached by 2023. The plant could enter commercial operations in 2026.

Development partner Danish Crown, Europe’s largest pork producer, says that by replacing fossil fuel derived ammonia with ‘green’ fertilizer, up to 1.5 million t/a of CO 2 emissions could be removed. Meanwhile shipping partners Maersk and DFDS are looking to decarbonise their fleets. Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller-Maersk said: “we consider green ammonia as a promising option for marine fuel and a dual-fuel engine for ammonia is under development. We are optimistic that ammonia, along with methanol and alcohol-lignin blends will be powering Maersk-vessels in the future.” The company is targeting 2023 for its first ammonia powered vessel.

Topsoe reports strong growth

Haldor Topsoe’s 2020 annual report has shown a 5% increase in revenue to $1.0 billion for 2020 in spite of the covid pandemic. Earnings before interest and taxes were up 6% to $123 million. Last year also saw the launch of a strategic transformation of the company, with the aim: “to be recognized as the global leader in carbon emission reduction technologies by 2024.” This has led to a restructuring of the company focusing on three pillars. The first, Global Strategy & Innovation, combines the alignment of company strategy with research and development activities. The second, Global Commercial, combines all commercial activities in one global organisation to develop a strong commercial mindset, and enhance customer focus and service, with fast commercialisation of new product offerings. The third pillar, Global Supply, brings together the full supply chain activities to produce high-quality products more efficiently.

The company has also recently committed to the ‘Science Based Targets initiative’, led by the UN Global Compact, World Resources Institute, and World Wildlife Fund, to set short-term targets to reduce carbon emissions. Topsoe’s short-term target is to reduce greenhouse gas emissions from its own production by 15% in 2021 compared to 2019.

SINGAPORE

Yara joins ammonia tanker project

The Maritime and Port Authority of Singapore (MPA) and fertilizer giant Yara International have joined previously existing partners Malaysian shipping line MISC, Lloyd’s Register, Samsung Heavy Industries and MAN Energy Solutions in the ammonia-fuelled tanker joint development project (JDP). Yara will work alongside MISC, LR, SHI and MAN to develop ammonia powered ships while the consortium will use MPA’s experience as a bunkering hub and flag state to gather insights on safety issues and ammonia bunkering procedures, as well as gaining access to research capabilities in Singapore. MISC says that it is aiming to be operating an ammonia-fuelled tanker by 2025.

“The addition of MPA and Yara means that the alliance which was first unveiled in January 2020, now has a complete representation from all areas of the maritime ecosystem. The experience and expertise of each partner will be central to the success of the initiative, from conception to project realisation,”

“Supporting the enabling role of ammonia in the energy transition, we recognize the need for value chain collaboration to make zero emission shipping by using ammonia as a fuel a reality,” said Magnus Ankarstrand, EVP clean ammonia, Yara.

Last September, Lloyd’s Register granted approval in principle to Samsung Heavy Industries for its ammonia-fuelled tanker design, a landmark project being carried out by MISC and engine manufacturer MAN Energy Solutions.

CHINA

Stamicarbon to provide urea plant license

Stamicarbon has signed a licensing and equipment supply agreement with Henan Xinlianxin Chemicals Group Co. Ltd for a second ultra-low energy grassroots urea plant in Jiangxi province. Henan Xinlianxin is currently commissioning the first plant, designed with Stamicarbon’s Launch Melt ™ low energy design. It represents the third licensing project in five years between the two companies, following a revamping project signed in 2016 and the award of the license for the first low energy urea plant design in 2017. Stamicarbon will deliver the process design package and proprietary high pressure equipment in Safurex ® , together with associated services for both the urea melt plant and prilling plant. The urea plant, using a pool reactor, will have a capacity of 2,330 t/d, and is expected to start up in 2023.

New melamine plant licensed

Eurotecnica, the technology arm of Proman Group, has been awarded a contract by the Yankuang Group, one of the largest coal and chemical companies in China, for the licensing, engineering and procurement of Eurotecnica’s 24th melamine plant based on its proprietary Euromel ® technology. This project will be the fifth large scale single-train 60,000 t/a capacity plant award in a row, and will bring total Euromel nameplate capacity worldwide to 860,000 t/a, according to Eurotecnica. The new project will feature a single reactor arrangement and Eutotecnica’s, zero pollution concept, as well as incorporating technological improvements for reduction of energy consumption.

SWITZERLAND

Clariant sets science-based climate targets

Clariant has committed to new 2030 targets to reduce CO 2 emissions in line with the Science Based Targets initiative (SBTi). The new targets, which have been officially validated by the SBTi, set out ambitious absolute emission reductions in the company’s operations and supply chain. Between 2019 and 2030, Clariant is aiming for a 40% absolute reduction in scope 1 and 2 greenhouse gas emissions and a 14% absolute reduction in scope 3 greenhouse gas emissions, equivalent to the level of decarbonisation required to keep global temperature increase below 2°C.

Alongside the CO2 emissions targets will be other targets covering of water intake, waste water, hazardous waste, landfilled non-hazardous waste, and nitrogen oxide emissions (NOx). Clariant has also committed to the implementation of sustainable water management systems at all sites in areas of high water stress by 2030. The company has also adapted important governance aspects to steer its transformation, such as linking greenhouse gas emissions reduction to remuneration and implementing internal carbon pricing. The company says it is aiming to reduce emissions by focusing on increasing energy efficiency through digitalisation of its operations, increasing use of green electricity and low carbon fuels, and accelerating innovation in value chains with increased use of low carbon raw materials such as waste streams and sustainable bio-based materials.

“Sustainability is one of Clariant’s five strategic pillars and guides the path of our transformation into a leading specialty chemicals company. Our new targets reflect our commitment and responsibility toward enabling a more sustainable future. Innovation and transformation are the two vital elements that will lead us to success,” said Bernd Hoegemann, Chief Transformation Officer at Clariant.

GERMANY

BASF and Siemens Energy to cooperate on carbon management

As part of a strategic partnership, BASF and Siemens Energy plan to accelerate commercial implementation of new technologies designed to lower greenhouse gas emissions. By combining BASF’s technological expertise with Siemens Energy’s innovative product and services portfolio, BASF aims to extend its leading role in lowering CO2 emissions in chemical production. Several pilot projects at its Ludwigshafen site are under discussion. BASF’s headquarters is one of the largest chemical production sites in the world.

Possible pilot projects include the construction of a PEM (proton exchange membrane) electrolyser for hydrogen production with an output of 50 MW with the possibility of modular capacity expansions and the installation of a high-temperature 50 MW thermal heat pump for generating process steam from waste heat in a production plant. In addition, modernisation of the power grid at the Ludwigshafen site using digital and CO2 -optimised products from Siemens Energy is being evaluated. A study is also underway to assess the potential for common system and catalytic converter development in an effort to boost the efficiency of electrolysis plants and for collaboration in generating electricity from wind energy.

Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE said: “by cooperating with Siemens Energy, we stand to benefit from the expertise of a first-class partner for implementing our carbon management, a partner with whom we can accomplish projects of a commercial scale. At BASF, we want to develop and implement new low-CO2 technologies as quickly as possible. If we want to use such technologies on a large scale, we will need appropriate regulatory framework conditions and targeted support. We need renewable electricity in large quantities for this, and we need it at competitive prices.”

Topsoe to collaborate on green ammonia facility

Haldor Topsoe has signed a memorandum of understanding with AQM Capital LLC (‘Aquamarine’) to build a green ammonia facility in Germany. The first planned stage will use Topsoe’s proprietary solid oxide electrolyser cells (SOEC) to produce green hydrogen from 100 MW of renewable electricity. Topose says that SOEC offers up to 30% more hydrogen output compared to standard technology such as PEM and alkaline electrolysis. The hydrogen will then be processed into 300 t/d of green ammonia, also using Topsoe technology. Aquamarine will develop the project and seek relevant permits, which will be located in northern Germany close to existing offshore wind farms, where the product can be sold to the marine shipping industry. Subject to a final investment decision, the facility is expected to be commissioned in 2024.

“We look forward to our partnership with Aquamarine on our SOEC and ammonia technology. Driven by our vision to be recognised as the global leader in carbon reduction emission technologies by 2024, we are excited by our low-carbon solutions and attractiveness for our customers. This project is innovative in both its use of cutting edge technology and its scale and will lead the way,” said Amy Hebert, Chief Commercial Officer, Topsoe.

“We are delighted to be working with Haldor Topsoe toward the commercial application on its cutting edge SOEC technology to bring green products to market as part of the global move toward decarbonization. We expect to be soon announcing other partners who will be joining the effort, as we move forward to build Hydr-GEN into a global green hydrogen products leader,” said Joel H. Moser, founder and CEO at Aquamarine.

NORWAY

Yara secures partners for Porsgrunn green ammonia project

Yara International has brought in two partners to help deliver the switchover to green ammonia production at its Porsgrunn production plant in Norway. The company signed a letter of intent on 18th February with Norwegian state-owned Statkraft, Europe’s largest renewable energy producer, and investment firm Aker Horizons.

Yara first unveiled its ambitious project to full electrify the Porsgrunn plant and produce 500,000 t/a of green ammonia at the end of last year (Fertilizer International 500, p10). This could be delivered within 5-7 years, according to Yara, provided enough renewable power was available and public co-funding was secured.

“With Statkraft and Aker Horizons onboard we gain key expertise within renewable electricity, power markets, industrial development and project execution, giving us a unique opportunity to realize the project,” said Svein Tore Holsether, President and CEO of Yara.

Yara and its new partners will be targeting growing market opportunities for both green ammonia and green hydrogen in areas such as agriculture, shipping and industry. These will be pursued through the recently created Yara Clean Ammonia business unit.

“A partnership with Yara and Statkraft, two fellow Norwegian industrial pioneers, marks the beginning of a new industrial adventure in Norway,” said Oyvind Eriksen, chairman of Aker Horizons. “The first project in Porsgrunn can be a lighthouse project – providing competitive advantage in a growing global hydrogen economy and building on existing capabilities in the Norwegian supplier industry to create new jobs for the future.”

UNITED KINGDOM

AIC responds to DEFRA urea consultation

The UK Agricultural Industries Confederation (AIC) has responded to proposals by the UK government’s Department of the Environment, Food and Rural Affairs (DEFRA) to reduce ammonia emissions from farming by restrictions on the use of urea fertilizer, one option of which would be a ban on the use of urea in the UK. The AIC said in its response that a ban on the sale and use of solid urea fertilizer is unwarranted. Instead, the organisation has urged the government to give the fertilizer sector the opportunity to reduce ammonia emissions through an industry-led commitment, based around the principles of nitrogen use efficiency (NUE), which will involve demonstrating delivery through a combination of FACTS qualified advice and farm assurance auditing.

“This industry-led approach would have many advantages over banning a nitrogen source from use,” said Robert Sheasby, AIC’s Chief Executive. “With an end goal to achieve UK 2030 emissions targets, and mindful of all that livestock farmers will need to do on the manure management front, the fertilizer sector is stepping up to deliver its part in curbing ammonia emissions from urea-based fertilizers.”

The AIC and partners across the industry and food chain have committed to improving farm nutrient balance (notably for nitrogen and phosphorus) and NUE by 2030.

“We recognise that all fertilizer sources have their pros and cons, and that farmers and growers need the right products, for the right weather conditions, at the right time. This is where the fertilizer sector and all professional advisers are best placed to help. By supporting farmers to improve their overall crop NUE it’s a win-win situation,” added Sheasby.

IRAN

Lordegan urea plant begins exports

Iran’s Lordegan Petrochemical Company, based at Chaharmahal in Bakhtiari province, says that it has exported its first ammonia shipment to Turkey. The 2,500 tonne cargo has been despatched to the neighbouring country, and Lordegan says that its first urea cargo is expected to be exported soon. The recently completed Lordegan plant has a capacity of 670,000 t/a of ammonia and over 1.0 million t/a of urea.

NETHERLANDS

Sustainable urea production

A consortium led by the Netherlands Organisation for Applied Scientific Research (TNO) has received a grant of e21 million from the European Commission under the Horizon 2020 Framework Program to investigate and develop the potential of industrial symbiosis to convert residual gas emissions from steel production into resources for urea production. TNO will be partnered in the project by Maire Tecnimont subsidiaries Stamicarbon, MET Development SpA and NextChem SpA.

The “Initiate” (Innovative Industrial Transformation of the steel and chemical industries of Europe) project will demonstrate a novel, symbiotic and circular process that transforms residual steel gases into resources for urea production. The core of this process is a modular carbon-capture utilisation-and-storage (CCUS) technology, integrating the flexible conditioning of time-dependent and carbon-rich steel gases with the synthesis of ammonia. Once a successful technology pilot unit is completed, the project partners aim to scale up to a 150 t/d urea demonstrator plant by 2026.

Stamicarbon will be responsible for the commercial implementation plan. The main objective of the demonstration plant is to justify the viability and prove the capability to produce ammonia, while in the next phase the commercial implementation plan is focused to establish an industrial-scale Initiate plant reference for the production of urea.

CROATIA

Petrokemija completes repairs and revamp

Croatian fertilizer producer Petrokemija has completed a $14 million programme of repairs and revamps at its Kutina chemical site. The revamp included $3.5 million of investment at the company’s ammonia plant to install a new air preheater for the primary reformer. Other works were conducted on the urea plant, water processing and power facilities, sulphuric acid, ammonium nitrate, CAN and NPK plants. Production at the site resumed on February 8th, after damage caused by a 6.4 magnitude earthquake in Petrinja in central Croatia on December 29th shut the site down over safety concerns. Repairs to the AN/CAN plants continue and the plants will re-start soon, according to the company.

JAPAN

Jera to produce ammonia for power

Jera, a joint fuel-procurement venture between Japan’s Tokyo Electric Power and Chubu Electric Power, has signed a memorandum of understanding with and Malaysian oil, gas and fertilizer giant Petronas to develop CO2 -free ammonia production using renewable energy, including hydro-electric power. Jera aims to use the ammonia as part of its plan to decarbonise electrical power generation. The consortium accounts for about 10% of Japan ‘s total emissions of carbon dioxide, via its gas- and coal-fired power plants. It aims to reduce this to near-zero by 2050 via use of renewable hydrogen and ammonia.

The companies plan to begin a demonstration project within the next year in which coal and ammonia will be mixed and used as fuel at a thermal power plant in Aichi prefecture in central Japan. This will provide the companies with more knowledge and will support their move towards creating a power generation facility that will burn only ammonia. While renewable ammonia will be more costly as a fuel than coal, Jera says that it aims to reduce costs by taking charge of every process, from development to procurement to power generation. Japan is pushing hard with ammonia fuel development. The Ministry of Economy, Trade and Industry has set a target of introducing 3 million t/a of ammonia fuel by 2030.

INDIA

Government to sell 20% stake in NFL

The Indian government has decided to sell 20% of its existing 74.7% stake in state-owned National Fertilizers Ltd (NFL) via an offer for sale. The Department of Investment and Public Asset Management has invited tenders from merchant banks for the sale process. NFL is the second largest producer of urea in India, with a share of about 15% of total domestic production. The sale of the 20% stake in National Fertilizers Ltd is expected to bring in around $54 million for the government.