Nitrogen Industry News

Nitrogen Industry News

DENMARK

Agreement on large-scale electrolysis for ammonia

Topsoe has agreed to supply an initial 500 MW of industrial-scale, solid oxide electrolyser cells (SOEC) to First Ammonia, a US company aiming to produce green ammonia for transportation fuel, power storage and generation, as well as fertilizer, at sites in northern Germany and the southwestern United States. The companies envisage that over the lifetime of the agreement some 5 GW of SOEC electrolysers will be supplied, potentially replacing almost 5 bcm of natural gas and eliminating the emission of 13 million t/a of CO 2 emissions. The facility to manufacture the electrolyser cells will be built in Herning, Denmark, and has recently received a final investment decisions from Topsoe’s board.

First Ammonia has been developing sites around the globe for the production of commercial-scale, green ammonia production facilities with first operations planned for 2025. The company says that it will operate all of its plants dynamically to support existing renewable power markets.

Joel Moser, CEO of First Ammonia, said: “We have the utmost confidence in Topsoe and its scientists and engineers… with their cutting edge SOEC electrolysers and industry leading ammonia synthesis, we will develop facilities around the world to produce millions of tons of green ammonia from water and air. Ammonia saved humanity from starvation a century ago as a replacement for depleted sources of fertilizers, in large part due to Topsoe’s excellence. Ammonia can save humanity once again as the workhorse of the hydrogen economy, replacing petrochemicals to decarbonise agriculture, transportation and power storage and generation.”

Partnership breaks ground on green ammonia project

A Danish partnership comprising Topsoe, Skovgaard Energy, and Vestas has begun construction of a demonstration plant at Ramme near Lemvig in western Jutland that will produce 5,000 t/a of green ammonia based on 50 MW of renewable power from solar and wind, and production of hydrogen via water electrolysis. The project will demonstrate how renewable power can be coupled directly to the ammonia plant while taking fluctuations in power production into account. It is expected to be operational by 2023. The partnership has received 81 mill ion krone (e11 million) in funding from the Danish Energy Technology Development and Demonstration Program (EUDP).

Kim Grøn Knudsen, Chief Strategy and Innovation Officer at Topsoe said: ”We are very excited to begin this next chapter going from maturing the project to actually begin construction of this cutting-edge green ammonia plant. The plant will serve as a prime example of how we can replace fossil-based fuels and fertilizer by carbon-neutral alternatives via electrolysis.”

UNITED ARAB EMIRATES

Fertiglobe pays $750 million in dividends

Fertiglobe, the strategic partnership between ADNOC and OCI, and the world’s largest seaborne exporter of urea and ammonia, says that its general assembly has approved payment of a 1H 2022 cash dividend of $750 million. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe commented:

“Fertiglobe’s very solid first-half performance and approved dividend of $750 million has resulted from powerful earnings momentum, healthy cash conversion and a robust capital structure. The company has achieved strong growth since its landmark IPO on ADX [the Abu Dhabi stock exchange] almost one year ago, and we are delighted to have created significant value for shareholders during that time. As we look ahead to a very promising end to 2022, we will continue to execute on our strategy to create long-term value for all stakeholders.”

UNITED KINGDOM

IFS launches new online information resource

The International Fertilizer Society has launched FerTechInform, a new online information resource covering technical aspects of fertiliser production. The resource has two complementary parts – an information knowledge base and an interactive forum. The knowledge base contains introductory level information on processes, chemistry, materials and equipment, augmented by links to more detailed or specific resources and related IFS Proceedings. The related forum enables users to interact with each other, supported by a panel of experts who are available to answer questions. Much of the content of the knowledge base has been derived from the IFDC’s Fertilizer Manual ‘Green Book’, with other content provided by the European Fertilizer Blenders Association, Fertilizers Europe and the European Sustainable Phosphorus Platform, among others.

Additive improves nitrogen availability

An innovative trial exploring if a new slurry additive can improve nutrient availability in digestate has shown a 20.3% increase in available nitrogen content and a 29% reduction in dry matter solids after the first year. The Digest-It slurry additive from Origin Fertilisers is a live liquid biological bacteria that has been used in digestate for the first time and has been proven to significantly reduce ammonia emissions and increase ammonium nitrogen levels in slurry. The trial took place at a 1.2 MW anaerobic digestion plant in Lincolnshire.

Callum Norman, speciality sales manager at Origin Fertilisers, said: “We are really pleased with the results of the trial. The environmental benefits, such as reduced volatilisation due to the conversion of ammonia into ammonium, and supplying good microbes to the soil, will be a huge benefit to all farms and help contribute towards agriculture reducing its emissions”. From a financial perspective, the trial returned a 2:1 cost benefit and only required one application, reducing the labour requirement compared with additives that need ongoing applications.

NETHERLANDS

Partnership backs strategy for zero-emissions ammonia

Leading companies have endorsed a new strategy from the Mission Possible Partnership (MPP) to ramp up production of zero-emissions ammonia, potentially for use as a clean marine fuel. To date, 35 companies have endorsed the plan for action needed in this decade to achieve net-zero emissions by 2050, while contributing significantly to decarbonisation in other sectors of the economy. Signatories to the report include CF Industries, Yara, BASF, and SABIC, and renewable energy providers ACWA Power, Iberdrola, and Ørsted. Support for MPP’s strategy spans the ammonia value chain including both current and future buyers of ammonia as a zero-carbon energy carrier, a measure of growing momentum for action in the near-term. The sector generates about one percent of global CO2 emissions, with demand for ammonia likely to increase by three- to six-fold by mid-century.

Matt Rogers, CEO of MPP said: “This Ammonia Transition Strategy is operationally relevant and industry-backed, not wishful thinking or pie in the sky. We know how to reduce emissions, initially deploying resources and technology available today. The imperative is to act now, in this decade: we’re working with industry, supply chains and finance to deliver the clear thinking and asset-by-asset plans to make net zero viable”.

Tony Will, CF Industries president and CEO, said: “Achieving net-zero ammonia will not only transform our industry but also help accelerate the world’s transition to clean energy. This report is an important milestone, setting forth the opportunities and pathways for the entire industry to reach net zero and highlighting the many important ways that clean ammonia can help decarbonise other industries such as power generation and maritime shipping.”

MPP’s report maps critical steps for – including emissions data and real-economy milestones – for the sector to achieve net zero emissions by 2050. The strategy forecasts strong demand for both green ammonia (where the hydrogen is produced via electrolysis from renewable electricity and water) and blue ammonia (from hydrogen produced from natural gas with carbon capture) with green ammonia emerging as the dominant material. New applications for green ammonia as an energy carrier – in particular as a marine fuel – could increase demand, as ammonia assumes a larger role in the transition to a green economy. Rapid scaling of near-zero-emissions ammonia production depends on the shipping sector – which is likely to use it as an alternative fuel to heavy fuel oil, and on demand from the power sector – where green ammonia could replace coal in Japan and South Korea.

RUSSIA

Domestic fertilizer purchases up 20% in 2022

According to Russia’s Ministry of Agriculture, Russian farmers increased their purchase of mineral fertilizers by 20% yearon-year during the first eight months of 2022, to 4.3 million tonnes nutrient. President of the Russian Fertilizer Producers Association, Andrey Guryev, said: “Nearly 90% of the Ministry mineral fertilizer purchasing plan for 2022, taking into account carryover stocks, has already been fulfilled. The remaining volumes are already under contract and have been included in the production schedule for the rest of the year. All the necessary infrastructure for the transfer and storage of mineral fertilizers to ensure that seasonal field work is carried out throughout the country is in place. The annual supply target will be exceeded.”

During the All-Russian Field Day 2022, in the Kaliningrad region on 29 July 2022, Russia’s Agriculture Minister, Dmitry Patrushev, said that farmers would purchase 5 million tonnes nutrient this year and that the application rate would be 60 kg nutrient/ha. The Minister also noted that purchases of mineral fertilizers need to be increased to 8 million tonnes nutrient by 2030.

PORTUGAL

NEXTCHEM wins contract for renewable hydrogen and ammonia project

Tecnimont subsidiary NextChem has been awarded a pre-FEED engineering services contract by MadoquaPower2X – a Portuguese/Dutch/Danish consortium led by Madoqua Renewables along with CIP’s Energy Transition Fund and Power2X to develop and operate an integrated renewable hydrogen and green ammonia plant at Sines, Portugal. The scope of the agreement covers early studies, technology and process review, modularity and logistics analysis, and the front end loading of engineering required to undertake the permitting and licensing for the project.

MadoquaPower2X will use renewable energy and 500 MW of electrolysis capacity to produce 50,000 t/a of green hydrogen along and up to 500,000 t/a of green ammonia plant in its first phase, avoiding 600,000 t/a of CO2 emissions. It is the first industrial scale project at the new Sines energy and technological hub.

João Galamba, Portugal’s minister for Environment and Energy said: “Climate neutrality by 2050 requires bold decisions on sustainable investments with a focus on energy and climate goals, while allowing economic recovery and MadoquaPower2X in Sines is a good example of this. From ambition we moved to action, and we are pleased to witness this important milestone for MadoquaPower2X and Maire Tecnimont, confirming the right path to meet the goals we have set for energy transition. I congratulate the partners of this project for their commitment and dedication”.

ITALY

Eurotecnica wins two more melamine plant contracts

Eurotecnica, the technology arm of the Proman family of companies, has been awarded two contracts for the implementation of large scale high-pressure melamine plants, with capacities of 60,000 t/a and 80,000 t/a respectively. Both plants feature single reactors and use 5th generation proprietary Euromel® technology. Together with the previously announced world’s largest high pressure melamine plant at 120,000 t/a, the new contracts bring Euromel’s total licensed nameplate capacity to more than 1.13 million t/a at 28 facilities worldwide.

SAUDI ARABIA

ACWA Power and KEPCO to explore industrial-scale green hydrogen/ ammonia production

Saudi power generator and developer ACWA Power, has signed a memorandum of understanding with the Korea Electric Power Corporation (KEPCO), for a partnership in the development of green hydrogen/ammonia projects in Middle East and decarbonise KEPCO’s operations in South Korea. KEPCO company intends to utilise the venture’s end products to operate its power plants in South Korea. This is the first agreement of its kind between ACWA Power and KEPCO, though both companies have been joint investors in projects like Rabigh 1 independent power plant in Saudi Arabia for nearly a decade. In order to decarbonise its operations, KEPCO plans to rely increasingly on green ammonia produced from green hydrogen for power generation purposes and is targeting the use of 5-10 million t/a of green ammonia by 2030.

Paddy Padmanathan, CEO and vice chairman of ACWA Power said: “The world is witnessing the alarming impact of climate change and as pressure rapidly mounts to take immediate, mitigating action, collaborative efforts need to be made to find the right solutions. We are honoured to work with committed, long-term partners like KEPCO to accelerate the exploration of green hydrogen – a solution that can decarbonise entire industries and make a real difference towards reducing global warming.”

Lotte Fine Chemical to import 50,000 tonnes of blue ammonia

Korea’s Lotte Fine Chemical says that it will import 50,000 tonnes of blue ammonia from Saudi Arabia. Half of the total will come from Aramco subsidiary SABIC, and the remainder from mining company Ma’aden. Ammonia will be shipped to Lotte Fine Chemical’s terminal in the southeastern port city of Ulsan by the end of 2022. This is the world’s first commercial deal to supply blue ammonia certified by Germany’s testing, inspection and certification agency, TUV Rheinland.

MALAYSIA

Malaysia may use ammonia co-firing at coal power plants

Japan’s biggest power generator, JERA says that it is collaborating with heavy industry manufacturer IHI Corp to explore ways to expand the use of ammonia as a fuel at coal-fired power plants in Malaysia. The two companies have been working together on co-firing ammonia with coal at a large commercial power plant in Japan to cut carbon dioxide emissions. Under a memorandum of understanding signed by their subsidiaries, JERA Asia and IHI AP, the companies will jointly study ammonia co-firing in thermal power plants in Malaysia to contribute to decarbonisation there, JERA said in a statement. JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power.

UNITED STATES

Nutrien selects thyssenkrupp Uhde for blue ammonia project

Nutrien says that thyssenkrupp Uhde has been selected as technology provider and partner for the world’s largest clean ammonia plant, which Nutrien plans to build at its existing Geismar, Louisiana site. The plant will have an expected annual production capacity of 1.2 million t/a and is expected to capture and store more than 90% of its CO2 emissions to achieve the lowest carbon footprint of any ammonia plant at this scale, with the potential to transition to net-zero emissions with future modifications. The ammonia plant will serve growing demand in agriculture, industrial and emerging energy markets. A final investment decision on the project is expected in 2023, and if approved, full production is anticipated by 2027.

“This partnership marks another important milestone in our commitment to provide solutions to help meet the world’s decarbonisation goals through leadership in clean ammonia production,” said Trevor Williams, Interim President, Nitrogen and Phosphate at Nutrien. “We are glad to have an experienced partner with both the technology and proven execution competence to join us on this journey as we strive to sustainably feed and fuel the future.”

Traditional ammonia plant designs can only achieve carbon capture rates of up to 70% and face significant challenges to reach a net zero design. Nutrien’s clean ammonia plant will use autothermal reforming technology to achieve carbon capture rates of at least 90% percent.

ExxonMobil and CF Industries to partner on large-scale CCS project

ExxonMobil and CF Industries have signed an agreement to invest $200 million in a CO2 dehydration and compression unit at CF Industries’ Donaldsonville, Louisiana fertilizer facility. Carbon dioxide captured at Donaldsonville will then be transported using some of Exxon’s EnLink Midstream 6,400 km pipeline network, to a geological storage site the company owns in Vermilion Parish, Louisiana, where it will be permanently stored. Up to 2 million t/a of CO2 emissions could be captured and stored in this way, equivalent to the output of approximately 700,000 gasoline-powered vehicles, according to the project partners. Donaldsonville has a capacity of nearly 8 million t/a of nitrogen products, and CF says that it expects to market up to 1.7 million t/a of blue ammonia as demand for it begins to grow.

“This agreement… ensures that we remain at the forefront of the developing clean energy economy. As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia,” said CF Industries’ CEO Tony Will. “This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonisation goals.”

Collaboration on Gulf Coast clean hydrogen/ammonia facility

Air Liquide, Chevron, LyondellBasell and Uniper SE have announced their intent to collaborate on a joint study that will evaluate the development of a hydrogen and ammonia production facility along the US Gulf Coast. The facility could support industrial decarbonisation and mobility applications in the region and expand clean ammonia exports, helping to increase the supply of lower carbon power internationally. If development proceeds, the project could leverage existing advantages along the Gulf Coast, including pipeline infrastructure, to supply lower carbon and renewable hydrogen to local industrial clusters. Likewise, ammonia infrastructure could support exports to both Europe and the Asia Pacific region.

Adam Peters, CEO of Air Liquide North America, said: “Air Liquide is proud to evaluate, with its customers and industry partners, opportunities to further develop and deploy low-carbon and renewable hydrogen, and carbon capture technologies in the region. The Gulf Coast is the ideal location to model hydrogen and carbon capture technologies as immediate pathways to decarbonising hard-to-abate sectors. This project exemplifies Air Liquide’s commitment to decarbonizing industrial basins around the world. Prioritising sustainable technologies, like hydrogen and carbon capture, means we can provide energy transition careers for many thousands of American workers while building a more sustainable energy future for all.”

KBR wins contract for blue ammonia project

KBR has been awarded a technology contract by Tecnimont for OCI NV’s low-carbon blue ammonia project in the United States. Under the terms of the contract, KBR will supply the technology license, basic engineering design, proprietary equipment and catalyst for the 1.1 million t/a blue ammonia plant. Targeting completion by 2025, the project will be designed to transition from blue to green ammonia production as green hydrogen becomes available at larger scale in the future.

“We are excited to continue to build on our strong relationship with OCI NV and Maire Tecnimont to deliver our market-leading and proven ammonia technology for this energy transition project,” said Doug Kelly, KBR President, Technology. “This award is a further testament to KBR’s leadership in helping its clients implement effective decarbonisation technologies today on a path to achieving their future ESG objectives.”

AUSTRALIA

Lloyd’s Register looking at clean ammonia from Pilbara

Lloyd’s Register has been selected to undertake key feasibility studies into using clean ammonia to refuel ships at world-scale ports in the Pilbara region of Western Australia. The announcement follows the signing of a collaboration agreement in August between Yara Clean Ammonia and the Pilbara Ports Authority (PPA). Yara Clean Ammonia Vice President Bunkering – Port Relationships & Regulation, Tessa Major said Yara’s existing and developing operations in the Pilbara are the perfect catalyst for unlocking new opportunities, and this is strengthened by a shared commitment with PPA to enable decarbonisation in the shipping industry. Lloyd’s Register will provide analysis focusing on key factors needed to assess the potential uptake of ammonia refuelling, including the market for clean fuels in shipping; shore side infrastructure requirements; safety considerations; and the regulations required to support ammonia bunkering at Pilbara ports. The execution of the study is expected to take at least 12 months. In September a final investment decision was announced for Project Yuri, which will see a renewable hydrogen plant built adjacent to the Yara Pilbara’s existing ammonia plants close to PPA’s Dampier port.

Lloyd’s Register chief commercial officer Andy McKeran says that the maritime industry has to make some significant investment decisions around alternative fuels in the decade ahead, but maritime value chain stakeholders needed surety on future fuel availability and the existence of landside infrastructure.

“Studies like this one will help give more certainty on the feasibility of the options being considered and will enable the industry to work to address the safety challenges around their safe adoption,” Mr McKeran said.

Burrup urea plant expected to get go-ahead this year

Nearby the proposed Dampier development, a $4.2 billion gas-based urea plant is expected to receive a positive final investment decision by the end of 2022, having received a $220 million loan from the Australian government to help cover construction costs. Incitec Pivot’s Perdaman urea plant will take gas from Woodside’s Scarborough project. The Federal Northern Australia Infrastructure Facility has already lent the Western Australian government $255 million to improve port and water facilities for the project. The project has attracted criticism from Aboriginal and environmental groups because of the proximity of the World Heritage nominated Murujuga rock art, more than one million rock engravings that are up to 40,000 years old, some of which will be relocated for the plant’s construction. Fears have also been expressed about the potential for site emissions to damage the rock art.

Green ammonia conversion for Gibson Island

Fortescue Future Industries is moving ahead on plans to partially convert Incitec Pivot Ltd’s Gibson Island ammonia facility near Brisbane, Queensland. The project will use large scale electrolysis powered by 500 MW of renewable electricity to convert up to 70,000 t/a of ammonia manufacture to zero carbon production. FFI and Incitec Pivot say planning for the conversion of the ammonia plant is now in its final stages, making a start on front end engineering design while also preparing the groundwork for a final investment decision in 2023. Assuming approvals are granted, first green production could begin in 2025. The federal government’s Australian Renewable Energy Agency will provide grant funding of A$13.7 million to defray the A$38 million FEED costs.

Incitec Pivot’s Gibson Island plant, Australia.

PHOTO: INCITEC PIVOT

INDIA

Tecnimont establishes new joint venture

Tecnimont and Metal Craft Constructors Private Ltd (MCCPL) have announced the establishment of Tecni and Metal Private Ltd, a new 51-49 joint venture to focus on efficient construction solutions for the Tecnimont Group’s projects in India, combining Tecnimont’s experience in planning and construction management retained and MCCPL’s long-term experience in providing specialised personnel for different project phases of complex industrial plants, including mechanical and civil engineering and construction, erection and pre-commissioning.

Milind Baride, India EPC Projects Vice President, Maire Tecnimont Group, said: “As we continue to expand Maire Tecnimont Group’s industrial footprint in India, it is important that we develop and nurture a robust in-house division focused solely on construction and mechanical works. We stay committed to ensuring the best environmentally performing products and processes, and our new JV Tecni and Metal Private Limited will take us a step closer to becoming the definitive leader in the Indian EPC arena”.

MoU on green ammonia project

Jakson Green has signed a memorandum of understanding (MoU) with the government of Rajasthan to invest $2.7 billion in a green hydrogen and ammonia project. The 365,000 t/a project will be developed in phases over the period 20232028, along with an integrated hybrid renewable power complex. Jakson Green is an energy transition platform backed by India’s Jakson Group. The government of Rajasthan said it would facilitate the project with registrations, approvals and incentives.

Start-up at Baruani urea plant

Hindustan Urvarak & Rasayan Ltd (HURL) began urea production at its new plant at Barauni on October 19th, according to the company. The plant is one of several developed by HURL to boost domestic urea production, and has a capacity of 1.27 million t/a of urea. HURL is a joint venture between Coal India Limited, NTPC, Indian Oil Corporation and the Fertilizer Corporation of India Ltd. It has been mandated by the government to revive urea production at Gorakhpur, Sindri and Barauni with an estimated investment of $3 billion.