Nitrogen Industry News

Nitrogen Industry News

UNITED ARAB EMIRATES

Blue ammonia to Japan

OCI subsidiary Fertiglobe says that it has partnered with the Abu Dhabi National Oil Company (ADNOC), to enable the sale by ADNOC of the first cargo of blue ammonia to Itochu in Japan, for use in fertilizer production. Fertiglobe, a 58% − 42% partnership between OCI and ADNOC respectively, will produce the blue ammonia at its Fertil plant at Ruwais in Abu Dhabi for delivery to ADNOC’s customers in Japan. This represent the first production milestone of a planned scale-up of blue ammonia production capabilities in Abu Dhabi, which is expected to include a low-cost debottlenecking program at Fertil. In addition, it was announced in June that Fertiglobe will join ADNOC and sovereign wealth fund ADQ as a partner in a new world-scale 1.0 million t/a blue ammonia project at Ta’Ziz in Ruwais, subject to regulatory approvals. The design contract for this project has been awarded, with a final investment decision expected in 2022 and start-up targeted for 2025. A feasibility study was also agreed in July betweenh the state-owned Japan Oil, Gas and Metals National Corp. (Jogmec), Inpex and JERA as well as ADNOC to explore the possibility of producing 1.0 million t/a of blue ammonia in Abu Dhabi and transporting it to Japan.

Nassef Sawiris, executive chairman of OCI and CEO of Fertiglobe, commented: “I am pleased that Fertiglobe is growing its low-carbon production capabilities in partnership with ADNOC. As a result of decarbonising the feedstock supply, we can materially reduce the carbon intensity of our downstream customers along the value chain and across a wide range of industries. We are pleased to leverage the Fertiglobe and ADNOC platforms to help decarbonise our production and customers’ footprints, while creating value to shareholders, a win-win across the board. This project shows that Fertiglobe is on track to become a global leader in low-carbon solutions, leveraging its globally leading position in ammonia.”

Masaya Tanaka, COO of Itochu’s Power & Environmental Solution Division, said: “We are pleased that Itochu… is contributing to a low-carbon society together with ADNOC. Starting with this trial of blue ammonia for fertilizer applications, we aim to create a wide range of ammonia value chains for existing industrial applications as well as future energy use. By collaborating with ADNOC and Fertiglobe, we expect to initiate and enhance our industrial portfolio in the fertilizer sector while achieving our commitments towards decarbonisation activities in other industries.”

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said: “Today’s announcement builds upon ADNOC’s commitment to expanding the UAE’s position as a regional leader in the production of hydrogen and its carrier fuels, meeting the needs of critical global export markets such as Japan. Through the expansion of our capabilities across the blue ammonia value chain, we look forward to furthering our legacy as one of the world’s least carbon intensive hydrocarbon producers and supporting industrial decarbonisation with a competitive low-carbon product portfolio.”

Following the sale to Itochu, ADNOC and Fertiglobe have made other sales to Japanese customers, including Inpex and Idemitsu. The former shipment is due to load in October.

Green ammonia in Abu Dhabi

German chemical licensor thyssenkrupp says that it has been awarded a contract to perform a technical study for a new green hydrogen and ammonia project by UAE company Helios. A water electrolysis plant as well as a facility for sustainable ammonia production are planned to be constructed at Kizad in Abu Dhabi, based on thyssenkrupp technology. It will be the first commercial plant to produce CO 2 -free green ammonia from renewable resources in the UAE.

The planned facility will integrate thyssenkrupp’s green hydrogen and green ammonia technologies, with the first phase set to incorporate a multi-megawatt electrolyser plant and an ammonia production facility with a capacity of 20,000 t/a in the first phase, with the next step being to increase this to 200,000 t/a.

M. K. Saiyed, managing director of Helios, said: “This project is another important milestone in the UAE’s shift to a lower carbon renewable energy future. The new facility will produce green ammonia which is an energy carrier that enables easy transportation of renewable energy e.g. via ship. It can also be used as emission-free transport fuel and in the fertilizer and chemical industries.”

Sami Pelkonen, CEO of thyssenkrupp’s Uhde business unit added: “We are very excited to work together with Helios to support the UAE on its way into a sustainable future. In doing so, we are building both on our innovative technology solutions as well as on thyssenkrupp’s regional and local footprint and long heritage as a partner to the region.”

UNITED STATES

Nutrien to partner in ship powered by low-carbon ammonia

Nutrien and liquefied gas transportation specialist EXMAR have signed a collaboration agreement to jointly develop and build a low-carbon, ammonia-fuelled vessel. Both partners support the decarbonisation of shipping and the International Maritime Organization’s (IMO) greenhouse gas strategy to reduce emissions. Their new collaboration aims to significantly reduce Nutrien’s maritime transportation emissions and enable the commercial development of an ammonia-fuelled vessel.

Nutrien says that it has actively been pursuing the development of low-carbon ammonia for more than a decade, and has a total of approximately 1 million t/a of production capability at its Redwater and Joffre Alberta and its Geismar, Louisiana facilities which employs carbon capture and sequestration to reduce the carbon intensity of its ammonia for use as a maritime fuel. When compared to conventional fuels, it is anticipated that the use of Nutrien’s existing low-carbon ammonia will achieve a reduction of greenhouse gas emissions of up to 40%. Emissions reductions of up to 70% can be achieved with the development of low-carbon ammonia using proven, scalable, best available technology and permanent sequestration of CO2 .

Under the collaboration agreement, Nutrien and EXMAR aim to select an ammonia engine and supply system manufacturer; select a shipyard capable of building an ammonia-powered vessel; use Nutrien’s existing low-carbon ammonia supply from Geismar, LA as a fuel; and deploy an ammonia-fuelled vessel as early as 2025.

ITC continues probe into UAN from Trinidad

The US International Trade Commission says that it has determined that there is a “reasonable indication” that US industry is being “materially injured” by imports of urea ammonium nitrate solutions that are allegedly subsidised and sold in the US below market value – so-called ‘dumping’. The finding means that the Commerce Department will continue to conduct a separate investigation into whether Russia and Trinidad & Tobago are unfairly subsidising exports of the fertilizer. Preliminary countervailing duty determinations are due on September 23rd, and anti-dumping duty determinations on December 7th.

GERMANY

Clariant expands emissions control capacity

Clariant Catalysts says that it is expanding and enhancing its capacity for emission control catalysts to meet growing global demand, particularly in China. The company has recently commenced operations at an additional, upgraded production facility in Heufeld, Germany, which features state-of-the-art production equipment exclusively dedicated to emission control catalysts, including the EnviCat catalyst range for removal of harmful emissions such as volatile organic compounds, carbon monoxide, nitrous oxide and nitrogen oxide. Production capacity for the catalysts has been increased to enable a volume growth of 100% compared to 2019. The site, which now includes two units, covering a combined area of 1,500 m².

FINLAND

Test programme on ammonia fuelled ships

Maritme technology group Wärtsilä has begun a test programme to pioneer the adoption of hydrogen and ammonia as viable engine fuels in the company’s new fuel-flexible combustion engines. Full-scale engine tests have been recently carried out in Wärtsilä’s engine laboratory in Vaasa, Finland, to assess the optimum engine parameters for running on these fuels. The company describes the test results as “very encouraging”, with one test engine performing very well when running on a fuel with 70% ammonia content at a typical marine load range. Tests were also completed successfully on another engine in pure hydrogen operation. Testing will continue with the aim of defining the most feasible internal combustion engine-based solutions for power plant and marine applications, thereby enabling the transition to a decarbonised future with green fuels.

For the energy market, Wärtsilä expects to have an engine and plant concept for pure hydrogen operation ready by 2025. For the marine market, the company expects to have an engine running on an ammonia blend later this year, and an engine concept with pure ammonia fuel in 2023. In the energy sector, it is anticipated that green hydrogen will deliver 7% of global energy demand by 2050.

Wärtsilä is also developing ammonia storage and supply systems as part of the EU’s ShipFC project. The company has already gained significant experience with ammonia from designing cargo handling systems for liquid petroleum gas carrier vessels, many of which are used to transport ammonia. In addition, Wärtsilä will begin testing ammonia in a marine four-stroke combustion engine together with customers Knutsen OAS, Repsol Norway and Equinor at the Sustainable Energy Catapult Centre in Stord, Norway, as part of the Demo2000 project.

EGYPT

Revamp for Abu Qir 3

thyssenkrupp Fertilizer Technology has signed a contract with Abu Qir Fertilizers for the revamp of their Abu Qir 3 urea granulation plant in Alexandria, by 2025, thyssenkrupp Fertilizer Technology will supply the license, the process design package and proprietary equipment. UFT® fluid bed granulation will increase the nameplate capacity from 2,000 t/d of urea granules to more than 2,500 t/d. The company says that its proprietary horizontal cross flow scrubbing system minimises urea dust and ammonia emissions. This is achieved by appropriate handling of the exhaust streams from the urea granulation plant and from the urea synthesis plant.

Abu Qir 3 plant, Egypt.

PHOTO: TKIS

NORWAY

Yara in partnership for Porsgrunn decarbonisation

Yara, Aker Clean Hydrogen and Statkraft are all equal partners in a new company, HEGRA, which has been launched to electrify and decarbonise ammonia production at Yara’s ammonia plant at Herøya, Porsgrunn. HEGRA is short for HErøya GReen Ammonia. The decarbonisation project will reduce CO2 -emissions by 800,000 t/a, equivalent to the emissions of 300,000 fossil-fuelled cars, with a timescale of 5-7 years, assuming that sufficient power can be made available to the site and the required public co-funding is in place. It is aimed at meeting the ambitions of the European Commission’s ‘Fit for 5’ initiative, which aims to reduce EU emissions by 55% by 2030. The Norwegian maritime industry is also looking to cut their emissions in half by 2030, and access to emission-free fuels will be key to reach this goal.

AUSTRALIA

Origin and Mitsui in green ammonia tie-up

Australian upstream and utility firm Origin Energy and Japanese shipping firm Mitsui OSK Lines say that they will investigate the prospect of developing a supply chain to support the export of green ammonia from Australia. The joint study is expected to be completed by the end of this year, with any green ammonia export project to supply downstream markets from 2026. Origin is already carrying out a A$3.2 million ($2.3 million) feasibility study into building a 420,000 t/a green hydrogen and ammonia plant for exports at Bell Bay in Tasmania. Mitsui meanwhile says that it has restarted its ammonia transportation business to meet rising demand for cleaner energy, and is joining a project to develop the supply infrastructure for ammonia as a marine fuel in Singapore.

ETHIOPIA

Ammonia complex for Ethiopia?

Chinese solar panel maker GCL Group says that it plans a plant in Ethiopia to make ammonia using natural gas produced from fields it has been developing under a deal with the local government. It is potentially ultimately looking at 4 million t/a of ammonia production at Djibouti, with the aim of using the ammonia as a carrier for 2.5 million t/a of liquid hydrogen, to be recovered elsewhere, though the initial development is likely to be a 1.0 million t/a ammonia facility. GCL inked a deal with the Ethiopian government in 2013 to develop two gas fields, Calub and Hilala, and to carry out exploration at eight further blocks. The existing fields are expected to produce 3.5 bcm per year of natural gas in the first phase. GCL also plans to build 400,000 t/a of green hydrogen production capacity from renewable power sources, mainly solar power stations in northwestern China, by 2025.

CANADA

Petronas considering blue ammonia project for hydrogen transport

Malaysian state-owned oil and gas company Petronas has initiated a feasibility study into building a $1.3 billion plant in Alberta to export hydrogen to Asian markets as ammonia. The company is partnering Japan’s Itochu Corp and a Canadian pipeline company in the study, which is considering a 1.0 million t/a blue ammonia plant using natural gas from Petronas owned fields in British Columbia together with carbon capture and storage. Petronas and Itochu would jointly market the ammonia produced in Asian markets, potentially including thermal power generation in Japan.

UKRAINE

OPZ improves output and returns to profit

Odessa Port Plant (OPZ) says that it produced 409,200 tonnes of urea and 276,100 tonnes of ammonia in the first six months of 2021, with the volume sent to domestic and foreign customers. The company did not provide comparative data but confirmed both urea units and one of its two ammonia plants operated during the January-June reporting period. Of the ammonia, 42,100 tonnes were sold on a commercial basis, while OPZ’s transhipment facilities loaded 1.04 million tonnes of ammonia at the Black Sea port of Yuzhnyy, as well as 363,000 tonnes of urea. The state-owned firm also “significantly” increased deliveries to domestic buyers, with nearly 22,000 tonnes of ammonia and 51,000 tonnes of urea moved by rail and road – up 1,200% and 170% year on year, respectively.

The positive performance meant the producer made a profit of Ukraine hryvnia (UAH) 434 million ($16.1 million) in H1 2021, versus a loss of $600,000 over the same period in 2020.

EUROPEAN UNION

Nitrogen producers to bear the brunt of emissions legislation

Fitch Ratings says that nitrogen producers will be the most affected in the fertilizer sector by tighter emission regulations, particularly in Europe, and by closer investor focus. Long-term costs and decarbonisation capex needs will increase, but companies with credible environmental, social and governance (ESG) strategies can offset some pressures.

The European Commission’s new ‘Fit for 55’ climate plan is the latest regulatory proposal that will affect the sector, if approved by the EU Parliament, mostly through the revised terms for the Emission Trading System (ETS), and the introduction of the Carbon Border Adjustment Mechanism (CBAM). This proposal will affect European producers and exporters to the EU, but many countries outside the EU are considering similar regulations. However, the strictest regulatory requirements should come into force outside of our forecast horizon.

Carbon costs for fertilizer producers will rise as a result. Manufacturers’ investment needs to adjust their operations and protect their market positioning will also increase, Fitch says. Companies that act first and have credible ESG strategies may be able to mitigate these pressures through access to attractive green financing and an ability to capitalise on first-mover advantages in developing new products and technologies.

Only CF Industries, OCI and Yara have committed to carbon neutrality by 2050, while most other companies’ commitments are focused on greenhouse gas (GHG) intensity reduction. Only PhosAgro and ICL have incorporated Scope 3 emissions in their absolute GHG emissions reduction targets. Scope 3 emissions from product consumption account for the largest part of GHG emissions, representing more than 70% of all emissions. These emissions are the hardest to reduce, particularly in developing countries with less advanced agricultural practices. Some companies, including EuroChem and OCP, are yet to publish their emissions data and reduction plans. As investors and policymakers increasingly focus on climate change, we believe fertilizer producers’ ESG strategies are lagging behind, especially compared to European oil and gas majors.

Ammonia producers are most affected by the drive to cut emissions as hydrocarbons, mostly natural gas, are used as a feedstock in its production. The nitrogen industry is responsible for about 1% of global CO2 emissions.

ISRAEL

KBR to license nitric acid plant upgrades for Haifa

KBR says that it has been awarded a nitric acid technology contract by Haifa Group for two of its process plants at Mishor Rotem, Israel. Under the terms of the contract, KBR will provide the technology license, basic engineering design and proprietary equipment for both plants, to deliver a capacity increase of approximately 35% at each plant.

“We are proud to partner with Haifa Group to increase the production capacity of its plants through the use of our proprietary technology and knowhow,” said Doug Kelly, KBR President, Technology. “KBR has the industry’s leading design for energy-efficient nitric acid production in both mono-pressure and dual-pressure plants, and we look forward to working with Haifa to deliver higher production capacities while lowering plant emissions and operating expenses.”

Motti Levin, Haifa Group CEO, said, “This is a strategic initiative that strengthens Haifa’s position as a leader in the field of precision agriculture. It will contribute to an increase in agricultural yields while helping maintain an ecological balance. The two nitric acid plants are integral to our expansion plan to double our production capacity in the coming years.”

KBR’s Weatherly nitric acid technology has been successfully employed in 75 plants worldwide since the 1950’s, including approximately 80% of all US nitric acid plants.