Fertilizer International 513 Mar-Apr 2023
31 March 2023
Fertilizer Industry News
Fertilizer Industry News
UNITED KINGDOM
Anglo American to invest billions in Woodsmith mine
Mining major Anglo American is to invest up to $4 billion to complete its Wood-smith mine project in the UK.
The investment plans were unveiled as part of a long-awaited strategy update for the company’s large-scale polyhalite mine project in North Yorkshire released on 23rd February.
Anglo American says it will now increase the mine’s ultimate output – to 13 million t/a up from 10 million t/a – as part of the strategy update. It also expects initial production of its polyhalite fertilizer POLY4 to begin in 2027, with output ramped-up as the market for poly-halite develops.
Woodsmith will become one of the world’s largest fertilizer mines when complete. It is expected to be remain in production for at least 40 years.
“As noted in a number of market updates throughout 2022, we are enhancing the project’s configuration – including the capacity of the shafts and other infrastructure to accommodate higher production volumes and more efficient and scalable mining methods over time – to ensure we deliver maximum commercial returns from Woodsmith over the expected multi-decade asset life,” Anglo American said. “These project team proposals, endorsed by the Board at the end of the year, indicate an extension of the development schedule and the capital budget, compared to what was previously anticipated.”
In light of these changes, the company now expect to bring POLY4 to market in 2027, with an annual capital investment of around $1.0 billion. It is also proposing to increase Woodsmith’s design capacity to around 13 million tonnes per annum, subject to further studies and approval.
Anglo has already approved $0.8 billion of investment for Woodsmith in 2023, with most of this expenditure going to shaft sinking and tunnel boring activities. This comes on top of $522 million in capital expenditure in 2022.
“There is no other natural mineral fertiliser with the scale of potential impact of POLY4, and Anglo American has the only scalable source of polyhalite globally. This mineral is distinct in its composition, behaviour, benefit, and therefore its value,” said Duncan Wanblad, Anglo American’s CEO.
He added: “Farmers today must produce more food for a growing global population, whilst meeting increasing consumer, supply chain and governmental expectations for improved sustainability. POLY4 is uniquely positioned to help simultaneously address these interconnected challenges, because it increases yield and nutrient use efficiency, is low carbon and improves the health of the soil compared to conventional chemical fertilisers.”
Polyhalite is a natural mineral fertilizer containing potassium, sulphur, magnesium, and calcium plus numerous micronutrients. Anglo’s POLY4 product is suitable for organic farming and is made by simply crushing and granulating poly-halite. This provides POLY4 with a carbon footprint that is up to 85 percent lower than typical chemical fertilizers.
“POLY4 will help farmers achieve more balanced, sustainable fertiliser practices at a scale not seen in the industry for decades,” said Alexander Schmitt, chief marketing officer for Anglo American Crop Nutrients. “The product delivers better results than the same blend of nutrients available from conventional sources today, delivering sustainability benefits beyond the nutrient content and setting POLY4 apart from traditional fertilisers.”
“Our commercial trials have demonstrated that POLY4 can improve the efficiency of nitrogen and phosphorous by six percent compared to MOP, potentially reducing the amount of chemical fertiliser that needs to be applied,” added Dr Schmitt. “This is down to its prolonged nutrient release profile and multi-nutrient nature; just like you or me, consuming a more balanced and nutritious diet makes plants stronger, healthier and more productive.” n
INDIA
Coromandel launches new nanotechnology fertilizer
Private sector Indian fertilizer producer Coromandel International unveiled a new nanotechnology-based phosphate fertilizer, Nano DAP, in February.
“Application with the government for the commercial release of Nano DAP is in the advanced stage of approval,” the company said in a statement.
Coromandel is setting up a new production plant to manufacture Nano DAP in Andhra Pradesh and plans to commercially launch the product later this year.
The new product was developed at Coromandel’s R&D centre at the Indian Institute of Technology, Bombay. The Chennai-based company – part of Murugappa Group – said the efficacy, biosafety and toxicity of Nano DAP is being investigated prior to its launch via extensive field studies.
“Nano DAP will go a long way in driving the sustainability of Indian farms through improving nutrient uptake, lowering water consumption and minimising environmental losses,” said Arun Alagappan, Coromandel’s executive vice-chairman.
The adoption of Nano DAP should also make farm economics more attractive by driving sustainable fertilizer usage and site-specific nutrient applications, Alagappan said. He also praised the Indian government for its help.
“I would like to thank the government for its continuous guidance, extending policy and regulatory support and providing the requisite impetus for adoption of new technologies in farming,” he said.
SOUTH AFRICA
Elandsfontein makes inaugural bulk rock sale
Kropz Plc has made the first shipment and sale of 33,000 tonnes of phosphate rock concentrate from its flagship Elandsfontein project in the Western Cape.
This was confirmed by Louis Loubser, Kropz CEO, on 23rd January: “After numerous challenges, we are delighted to announce our first bulk sale from our Elandsfontein phosphate project which is a very significant achievement for Kropz.
We would also like to take this opportunity to thank all the team for their dedication and hard work to reach this milestone.”
NORWAY
Fertiberia joins Europe’s biggest blue ammonia project
Fertiberia has joined Barents Blue, the largest blue ammonia project in Europe, as an equal partner with its developer Horisont Energi.
Fertiberia entered into a co-operation agreement with Horisont on Barents Blue at the start of February. The two companies plan to become equal partners in the project from 1st April, with both companies taking a 50 percent ownership share.
The new stake in Barents Blue advances Fertiberia’s plans to become net zero by 2035. The Spanish-headquartered fertilizer producer said Barents Blue, located in Finnmark in the far north of Norway, will be Europe’s largest clean ammonia production plant. It will produce one million tonnes of blue ammonia per annum when it comes online.
State-controlled Norwegian oil & gas company Equinor and Norwegian independent oil & gas operator Var Energi both exited the Barents Blue project at the end of January – immediately prior to Fertiberia coming onboard as a partner – after their co-operation agreements with Horisont expired.
Barents Blue is aiming to produce blue ammonia derived from North Sea gas reserves at a site near Hammerfest, the world’s most northerly town. The carbon generated from the ammonia production process (steam methane reforming) will be captured, transported and stored in an underground North Sea geological reservoir – a part of an associated venture known as the Polaris carbon capture & storage (CCS) project.
The Norwegian ministry of petroleum and economy awarded a CO2 storage licence to the Polaris CCS project and its then operator Equinor in April 2022. The site has a potential storage capacity of 100 million tonnes, meaning it could permanently store CO2 from other sources as well.
However, the exit of Equinor now leaves Barent Blue looking for a new CCS operator. Responding to this, Horisont says it will now “invite new partners into the Polaris CO2 storage licence, including a qualified operator”. The company expects to have a new CCS operator in place within 2-4 months.
Barents Blue is backed by a NOK 482 million ($48.5 million) EU grant, secured under the important projects of common European interest (IPCEI) scheme. Horisont said this funding is unaffected by the changes to the consortium.
Argus has estimated that Barents Blue needs a minimum carbon price of $84/t to be viable – unless the developers are able to sell their low-carbon blue ammonia at premium over the market price for conventional grey ammonia. This is close to the current EU ETS allowance prices. These have averaged e82.94/t CO2 e over the past month (for December 2023 delivery).
SAUDI ARABIA
Ma’aden names Phosphate 3 project partners
The Saudi Arabian Mining Company (Ma’aden) has selected Worley and JESA International S.A. (JESA) as engineering and construction contractors for the initial phase of its Phosphate 3 mega project.
Ma’aden issued a preliminary agreement (notice of award) to both companies on 1st February. This covers engineering, procurement, and construction management (EPCM) services for phase 1 of the project.
“The parties expect to work towards a definitive agreement for the… EPCM contracts in the next few months,” Worley said in statement.
These EPCM contracts cover the design and construction of new process plants in the industrial cities of Wa’ad Al Shamal (WAS) and Ras Al-Khair (RAK) in Saudi Arabia. Both cities will form part of an integrated production complex that is expected to produce up to 1.5 million t/a of phosphate fertilizers, once operational.
Worley will provide in-Kingdom services for the project from its offices in Saudi Arabia and India. JESA, meanwhile, will provide out-of-Kingdom services, executed by its offices in Morocco.
“We are pleased that Worley has been selected for providing services to Ma’aden’s Phosphate 3 development program that is expected to make Saudi Arabia one of the leading phosphate fertilizer exporters worldwide,” said Chris Ashton, Worley’s CEO.
GERMANY
New Bedeschi centre of excellence
Italy’s Bedeschi S.p.a. has opened a new centre of excellence for materials handling in Saarbrücken, Germany. Dr Reza Poorvash will act as the new subsidiary’s CEO.
It follows the company’s opening a new branch in Australia.
“Bedeschi S.p.a. is excited to announce the opening of the new Bedeschi materials handling excellence centre in Germany!” Bedeschi said in a statement. “This centre enriches our already strong engineering backbone in Italy and will focus on the fields of port handling, stockyard equipment and wagon unloading.”
The company added: “Together with our recently established Australian branch, we keep on increasing our know-how in engineering, sales and after sales thus strengthening even more our position in the global material handling industry.”
NETHERLANDS
Next generation prilling machine
Kreber has received an order for an innovative urea prilling machine developed in cooperation with Stamicarbon.
This ‘next generation’ prilling machine has a nameplate capacity of 3,850 t/d and will be manufactured at Kreber’s Vlaardingen construction plant in the Netherlands.
The prilling unit will be installed in a Stamicarbon-designed, large-scale, stateof-the-art greenfield urea plant in India. This is scheduled to start up in 2024.
The design of the new machine is based on a single prilling bucket. This enable the large-scale and efficient production of urea prills and prills from other fertilizer types.
The prilling machine is a major upgrade to conventional prilling tower design – and has been developed by Kreber and Stamicarbon using more than a century of combined prilling knowledge. The machine produces large-diameter urea prills with a uniform particle-size distribution very efficiently. It is suitable for both natural and forced draft prilling towers. The unit can also be retrofitted at existing plants to improve product quality.
The new machine performs over a wide range of operating conditions and helps reduce particulate emissions from prilling towers. It can generate high-quality, large-diameter urea prills, while at the same substantially reducing particulate and ammonia emissions and plume opacity – especially when installed alongside Stamicarbon’s Jet Venturi™ scrubber.
UNITED STATES
Argus launches new fertilizer sustainability event
Argus is running a new Sustainable Fertilizer Americas Conference this summer. The event will explore ways of improving industry sustainability and maximising returns on investment in the fertilizer markets of the Americas.
The inaugural event is being held at the Grand Hyatt Tampa Bay, Tampa, Florida, 5-6th June 2023. The main conference topics include:
- The importance of sustainable fertilizer management and practice
- How to finance and build a sustainable fertilizer economy
- Regional case studies on policy and how companies are pushing fertilizer market sustainability further
- The developments that are still necessary to support sustainable fertilizer management.
Introducing the event, Argus said:
“Global fertilizer markets have experienced unprecedented changes in recent times, with supply lines disrupted, global inflationary pressures driving prices up, and in 2022 the world’s population soaring to over eight billion – to name just a few. As a result, the pressing concern across the global fertilizer community is how to work together to ensure food security, improve fertilizer self-sufficiency, and how to do so while meeting growing sustainability targets for the sector.
“The Argus Sustainable Fertilizer Americas Conference will provide participants a platform to network and hear from leading industry speakers and pioneers on the opportunities in the Americas fertilizer markets surrounding the central themes of sustainability, security, and affordability of fertilizer supply and management.”
Argus expects 150+ participants from across the fertilizer value chain to attend the two-day event, representing key producers, trading houses, financing, storage and logistics, governments and industry associations and AgTech companies.
CANADA
Soilgenic launches Visio-N Supra
Soilgenic Technologies launched an innovative urease inhibitor product, Visio-N Supra, in January.
Visio-N Supra contains 40 percent of the organophosphorus compound NBPT as its active component. The product can be used as a coating agent for commodity urea to create enhanced efficiency fertilizers (EEFs).
Soilgenic, which is headquartered in Calgary, Alberta, described the technology behind the product as a “breakthrough in making nitrogen fertilizers more efficient”.
“The development of the Visio-N Supra 40 percent NBPT formulation sets a new standard for… concentrated urease inhibitor technology,” said Jeff Ivan, Soilgenic’s president & CEO. “A high concentration formula combined with the ability to coat evenly at low application rates is critical, especially at low temperatures.”
He added: “Our FLX-Sol penetrating solvent technology has a low viscosity and low surface tension that also allows for reduced application rates with our highly concentrated NBPT formulation. Testing [has] showed excellent coverage down to -20°C (-4°F) – whereas other technologies will gel around 0°C (32°F).”
NBPT has become the standard urease inhibitor globally due to its ability to protect against above ground nitrogen losses. The inhibitor has been in particularly high demand this season, according to Soilgenic, due to high nitrogen costs and growing pressure on farmers to reduce the emissions associated with their fertilizer use.
Historically, NBPT has been available as a 26.6 percent formulation. Visio-N Supra, in contrast, is a high-quality and highly concentrated 40 percent NBPT formulation that, says Soilgenic, incorporates exclusive stabilisation technology that prevents NBPT from falling out.
The ability to deliver urease inhibitors at a higher concentration has added benefits, suggests Soilgenic, including reduced logistics, storage, and treatment costs. The company hopes these cost efficiencies will drive a further expansion in the market’s adoption and use NBPT.
