Nitrogen Industry News

Nitrogen Industry News

AUSTRIA

EuroChem makes offer for Borealis’ nitrogen business

Switzerland-based EuroChem Group AG says it has entered into exclusive negotiations to acquire the nitrogen business of the Borealis group, after having submitted a binding offer. One of Europe’s leading fertilizer producers, Borealis operates fertilizer plants in Germany, Austria and France, as well as more than 50 distribution points across Europe. It supplies 3.9 million tonnes of fertilizer products per year, including 800,000 t/a of technical nitrogen solutions and 150,000 t/a of melamine via the Borealis LAT distribution network. It is a market leader in melamine, with its operations in Austria and Germany supplying primarily the woodworking industry. EuroChem says that melamine and technical nitrogen solutions represent important new business lines for the company to expand its nitrogen-based product portfolio in Europe.

“EuroChem is a global leader in the mineral fertilizer industry, with a significant presence in all major markets,” said EuroChem Group CEO Vladimir Rashevskiy. “The addition of the Borealis nitrogen business to our portfolio, once approved, will strengthen our foothold considerably in such a key market as Europe. We are delighted with the results of our negotiations, and look forward to creating opportunities for further growth in the European market together with Borealis’ impressive management team.”

Borealis’ Linz site, Austria.

PHOTO: BOREALIS

SWITZERLAND

EuroChem posts record profits for 2021

EuroChem Group says that it achieved full-year 2021 sales of $10.2 billion and sales volumes of 27 million metric tonnes, generating a company-record EBITDA of $3.9 billion. The figure is more than double that for 2020, mainly, the company says, due to a more favourable pricing environment, a 6% increase in total sales volumes, and higher operating efficiencies.

“These encouraging results will allow EuroChem to build upon its position as a leading global fertilizer player,” said CEO Vladimir Rashevskiy. “The supportive environment enables us to set even higher goals for ourselves and invest in ambitious new projects to stay on our growth trajectory.”

Capital expenditure rose 6% year on year to $1.24 billion, with construction continuing on the 1.4 million t/a Northwest 2 ammonia/urea plant, and a new 8 million t/a capacity transshipment terminal at Ust-Luga on the Baltic Sea, among other projects.

Nitrogen sales volumes continued to be driven by urea, sales of which rose 18% to 3.4 million t/a amid tight markets in Europe due to high energy costs and limited availability from China. Ammonia sales rose 33% to 700,000 t/a in a market also impacted by elevated feedstock costs that kept prices high and supply short, with some European capacity idled. EuroChem became self-sufficient in ammonia after the 2019 launch of its 1.0 million t/a Northwest 1 facility at Kingisepp in Russia, which in 2021 produced 991,000 t/a. UAN sales volumes dropped by 10% to 1.4 million t/a year on year, although US sales remained roughly flat despite the imposition of preliminary anti-dumping duties on imports from Russia and Trinidad and Tobago.

RUSSIA

Topsoe signs MoU with Acron

On February 2nd, Haldor Topsoe signed a memorandum of understanding with Russia’s Acron Group for the purpose of jointly working within green technologies area. The MoU includes initiatives within joint development of technologies aimed to reduce greenhouse gas emissions (CO 2 and N 2 O) at Acron’s existing production sites of and the development of promising projects for new products with minimum environmental impact.

Speaking prior to the events at the end of February that saw major sanctions imposed on Russian financial institutions, Aleksandr Popov, chairman of the board of directors of Acron PJSC, said: “Acron Group continues to introduce the ESG principles to the production operations of its facilities. We are happy to partner with Topsoe, the recognized technology leader in the industry. We expect our cooperation to result in break-through solutions in green technology use, which will reduce the environmental load and improve the overall eco-efficiency of the Group’s facilities.”

“We are excited by Acron’s commitment to join pioneers in practical discovering of green technologies capabilities. I believe, together we will find the most efficient and advanced solutions that could be implemented on Acron’s facilities to minimize greenhouse gas emission and to contribute into sustainable development of industry in Russia,” said Roeland Baan, CEO, Haldor Topsoe.

Domestic demand for fertilizer increased 20% in 2021

The Russian Fertilizer Producers Association (RFPA) reports that domestic sales of mineral fertilizers increased by nearly 20% to 4.7 million t/a (tonnes nutrient) in 2021.This figure is expected to rise to 8 million t/a by 2025. However, domestic sales continued to be dwarfed by production by RFPA members, which increased 5% to 54.7 million t/a (tonnes product).

Andrey Guryev, president of the RFPA and CEO of PhosAgro, said: “Last year, RFPA members met and even exceeded the goals of providing mineral fertilizers to our priority domestic market. While many countries are already facing shortages, and a spike in prices for agrochemicals has become a real test for farmers elsewhere, there are no shortages in Russia, and the price controls that companies voluntarily introduced as a preventive measure in the middle of last year will remain in effect until the end of May 2022. Producers are now working to build up stockpiles of product in Russia’s regions and are planning their subsequent delivery to farmers before spring sowing. As in previous years, Russian producers will meet in full the demand from domestic agribusiness for 2022 in the amount of nearly 5 million tonnes of active ingredient.”

Russia currently has imposed a temporary export quota for the six months from December 2021 to June 2022 to alleviate the concerns of farmers regarding the availability of fertilizers for spring sowing. It has also banned the export of ammonium nitrate fertilizer until April. However, the impact of EU and US financial sanctions on Russia following the invasion of Ukraine remains unknown at present. Russia was the largest exporter of ammonia and urea, UAN and ammonium nitrate in 2021, with major markets including Brazil, the EU and US.

Russia has been building a large amount of export-oriented nitrogen capacity lately, including a new nitrogen solutions plant for EuroChem at Novomoskovsk and a project to build an ammonia-urea plant in the Leningrad region. In 2021, Acron Group completed an upgrade of its urea plant No. 6 at Veliky Novgorod, and the company has started construction of a calcium nitrate production facility and began upgrading its number 2 and 3 ammonia units and urea units 1-4. Kemerovo Azot plans to build 3,500 t/d of ammonia and 4,200 t/d of urea capacity, together with a 1,500 t/d industrial grade AN unit. KuibyshevAzot has started up a new ammonium sulphate nitrate plant and is completing construction of a urea facility with a capacity of 525,000 t/a. Shchekinoazot launched a new methanol unit and is preparing to launch a facility for the production of nitric acid and ammonium nitrate.

UNITED STATES

Clariant to sell Scientific Design stake to SABIC

Clariant has signed definitive agreements to divest its 50 % stake in the Scientific Design Company to its long-term joint venture partner, SABIC. SABIC is executing a call option raised in 2015 to acquire this stake, originally purchased by Süd-Chemie AG in 2003 and acquired by Clariant in 2011. Clariant reported a book value for the 50% stake of CHF 108 million as of 31 December 2020. The Scientific Design Company, headquartered in Little Ferry, New Jersey, is involved in the development, licensing and catalyst supply of proprietary processes for the production of ethylene oxide (EO), ethylene glycol (EO/ EG), bio-ethylene, bio-EO, bio-EG, EO derivatives, polyols and maleic anhydride. In addition to these technologies, Scientific Design Company Inc. produces proprietary catalysts and equipment for use in their own and other industrial processes.

Feasibility study on green hydrogen plant

Canadian-based AmmPower says that it has signed a letter of intent to develop a green hydrogen and ammonia plant at the Port of South Louisiana. It is conducting an initial feasibility study for a facility that could produce up to 4,000 t/d of green ammonia, potentially fuelling 4,500 vessels which pass through the busy port, which stretches for 50 miles along the Mississippi River. The provisional price tag is put at $1 billion, with a three year construction timescale.

“This initiative allows the Port of South Louisiana, being the largest energy transfer port in the United States, to move towards green hydrogen and ammonia in a robust manner,” said Gary Benninger, CEO of AmmPower. “Port of South Louisiana is not only one of the largest ports in the world, but will now have the infrastructure to support ocean going vessels that require green ammonia for fuel.”

Fire at AN facility

On January 31st a fire broke out at the Winston Weaver Company fertilizer blending facility at Winston-Salem, North Carolina. It was reported that there was 600 tonnes of raw AN on-site as well as 5,000 tonnes of finished fertilizer. The AN stockpile burned for four days, but fortunately there was no explosion as has been a risk at other major AN fires, such as West, Texas. Up to 6,500 local residents were evacuated as a precaution. Local media reported that the owners of the plant failed to submit a required chemical inventory to the NC Department of Public Safety in 2020 or 2021.

OMAN

Clariant to supply catalyst for green ammonia project

Clariant says it has been selected to supply, via licensor KBR, its next generation AmoMax 10 Plus catalyst for Oman’s new $3.5 billion green hydrogen and ammonia at the Duqm Special Economic Zone, Oman. Once completed, the plant will be a fully integrated, carbon-neutral facility, using solar and wind energy to produce 300 t/d of ammonia.

Stefan Heuser, senior vice president and general manager of Business Unit Catalysts at Clariant, commented, “We are convinced that green ammonia will play a crucial role in the global energy transition and with our novel ammonia synthesis catalyst AmoMax 10 Plus, we provide a state-of-the-art product to facilitate this change towards a more sustainable future. Together with our partner KBR we look forward to setting a new standard in a more sustainable and profitable green ammonia production.”

NORWAY

Linde to build electrolyser for ammonia plant

Yara International says it has contracted Linde Engineering to build a 24-MW green hydrogen demonstration facility at Yara’s ammonia plant at Porsgrunn, Norway. The project, which has been awarded a $31.6 million equivalent grant by government funding agency Enova, will use proton exchange membrane (PEM) technology by UK company ITM Power. Casale says that it will design the ammonia converter using its own technology. The plant is intended to demonstrate that ammonia produced with renewable energy can reduce carbon dioxide emissions in fertilizer production.

The electrolysis system will produce around 10 t/d of green hydrogen, which will replace some of the hydrocarbon-based hydrogen production in Yara’s plant, avoiding 41,000 t.a of CO2 emissions.

“The project aims to supply the first green ammonia products to the market as early as mid-2023, both as fossil-free fertilisers, as well as emissions-free shipping fuel,” said Magnus Ankarstrand, president Yara Clean Ammonia.

JAPAN

Ammonia fuel to be trialled in naphtha cracker

A Japanese consortium is planning to use ammonia as fuel to operate a naphtha cracker, as part of efforts to decarbonise the petrochemical sector. Mitsui Chemicals, Maruzen Petrochemical, Toyo Engineering and Sojitz will develop and demonstrate the technology, which will be partially funded by $200 million of subsidies from state research and development institute Nedo. The ammonia will be used at Mitsui’s Osaka ethylene plant, and Maruzen’s Chiba plant. Toyo Engineering will build and test the demonstration cracker and associated facilities, and Sojitz will develop and build an ammonia burner. The project will run to 2031, with the aim of building a commercial ammonia-fired cracker by the end.

SAUDI ARABIA

Ma’aden completes third ammonia plant

The Saudi Arabian Mining Company (Ma’aden) says that it has completed construction and pre-commissioning at its the third ammonia plant at Ras al Khair Industrial City, part of the Phosphate 3 Project. Trial production has now begun at the 1.1 million t/a plant, which has been built by Daelim at a cost of $893 million.

SOUTH AFRICA

Plans for large scale green ammonia plant

A joint venture between Linde, solar energy supplier Hive Hydrogen and South African investment company Built Africa have unveiled plans to build a huge $4 billion green ammonia plant at Nelson Mandela Bay in South Africa. The 800,000 t/a ammonia plant would be – once completed – the largest green ammonia unit in the world, although at present it exists only at a feasibility study stage. It is anticipated that it will take power from a neighbouring solar power project being developed by Hive Energy, as well as having access to a 1.4 GW wind energy facility for when solar power is limited. Construction is due to be completed by the end of 2025, with operations beginning in 2026.

Sasolburg to trial green hydrogen

Sasol has said that it will spend 350 million rand ($22.7 million) to repurpose an operational electrolyser at the company’s Sasolburg site to produce green hydrogen. The ‘proof of concept’ project is aimed to be operational within two years, producing 5 t/d of green hydrogen and feeding into ammonia production at Sasolburg. Sasol is also moving to procure 60 MW of additional renewable energy from independent power producers in addition to the 620MW it is already buying from Air Liquide and other suppliers to provide electricity for the plant. The company expects to be procuring a total of 1.2 GW of renewable energy by 2030 as part of its commitment to lower its greenhouse gas emissions by 30% by that date.

MALAYSIA

Casale wins melamine contract

Southeast Asia’s first grassroots melamine plant will be build using Casale technology, according to the company. The 60,000 single train plant is being constructed by Technip and Dialog Group Bhd for Petronas Fertilizer Kedah. Casale says it will supply the technology license, knowhow, process design package, engineering assistance and proprietary items for the melamine plant. Additionally, because of its position as a leading urea licensor, it will also be responsible for ensuring smooth integration with the existing ammonia-stripping urea plant, which will receive the off gases of the melamine plant.

The plant will be based on Casale’s LEM™ melamine process, which the company says offers the lowest energy consumption for both the melamine and associated urea plants; the highest urea to melamine conversion; high product quality; a low carbon footprint; and smooth integration with the existing urea plant due to the urea-based melamine off-gas scrubbing unit.

Federico Zardi, CEO and owner of Casale said: “We are very happy by this new success, especially for the detailed technical and economical selection process Casale and Technip have gone through during the dual-FEED stage of this project. Being the third melamine award in a row in the last 12 months, it clearly underlines the significant preference of the market for the cutting-edge LEM process.”

BRAZIL

Hitches ahead for sale of urea plant to Acron

Brazil’s state energy company Petrobras reportedly faces numerous legal hurdles in trying to conclude the sale of its Unidade de Fertilizantes Nitrogenados (UFN) 3 urea plant at Tres Lagoas in Mato Grosso do Sul state, in addition to the new issues with finance that global sanctions will create. The plant, which has a capacity of 800,000 t/a of ammonia and 1.3 million t/a of urea, was around 80% complete in 2014 when construction was abandoned. Petrobras terminated the EPC contract with Brazil’s Galvao Engenharia and China’s Sinopec at that time, for alleged noncompliance. However, both companies are suing Petrobras for breaching the contract, and local media reports that there are also “hundreds” of civil and labour lawsuits under way related to the sudden end of construction. Galvao was also ensnared in the subsequent Petrobras corruption scandal and filed for bankruptcy protection in 2015. Acron tried to purchase the plant in 2018-19 but negotiations came to nothing, but recent cooperation between presidents Putin and Bolsonaro seem to have put the deal back onto the front burner again.

BRUNEI

First cargoes sold from BFI

State-owned urea producer Brunei Fertilizer Industries (BFI) says that it sold its first cargoes of granular urea in early February, with two urea cargoes each of 6-7,000 tonnes being sold for delivery to Thailand and South Korea respectively. BFI has been ramping up production at the new 1.3 million t/a plant, which began produced its first commercial urea on January 23rd.