Nitrogen Industry News

Nitrogen Industry News

JAPAN

Blue ammonia project to use BASF technology

BASF says that its high-pressure regenerative CO2 capture technology HiPACT ® , codeveloped by BASF and engineering partner JGC Corporation will be used by INPEX, one of Japan’s largest exploration and production companies, in its Kashiwazaki Clean Hydrogen/Ammonia Project. This is Japan’s first demonstration project for the production of blue hydrogen/ammonia from domestically produced natural gas, the consistent implementation of carbon capture, utilisation and storage (CCUS) in domestic depleted gas fields and the use of hydrogen for power generation and ammonia production. The project is funded by the Japanese governmental organization New Energy and Industrial Technology Development Organization (NEDO).

HiPACT will capture and recover CO2 in the process gas from a hydrogen production facility using domestic natural gas as feedstock in the Hirai area of Kashiwazaki City, Niigata Prefecture. The facility will be constructed by JGC and is expected to start up in 2025. The recovered CO2 will be injected into the reservoirs of the depleted gas fields for enhanced gas recovery (EGR). By releasing the CO2 off gas above atmospheric pressure, HiPACT is expected to reduce CO2 capture and compression costs by up to 35% compared with conventional technologies.

UNITED STATES

CF Industries looks to supply blue ammonia to Korea

CF Industries has signed a memorandum of understanding with South Korea’s LOTTE Chemical Corp. to potentially codevelop a blue ammonia project in Louisiana’s Ascension Parish for shipment to South Korea. CF Industries has already signed a deal with Mitsui to develop the $2 billion “Blue Point” facility and has begun a front-end engineering and design study, and expects to make a final investment decision on the project in the second half of 2023 with a roughly four-year construction timeline, according to filings with the Securities and Exchange Commission. The two companies argue that there are considerable advantages for building the ammonia facility in the United States, including low-cost natural gas, suitable geology for carbon sequestration, and a friendly regulatory and legal framework for project approvals.

“In order to bolster the domestic hydrogen economy, it is important to secure a stable supply of clean hydrogen and ammonia, especially in overseas regions with abundant energy and low geopolitical risks,” Jin-koo Hwang, head of hydrogen energy business at LOTTE, said. “Through strategic collaboration with CF Industries, which has a long history and business experience, we will secure a production base in the USA and lead the global distribution channel.”

“We look forward to helping LOTTE and South Korea meet their clean ammonia requirements as we continue to accelerate the world’s transition to clean energy,” said Tony Will, president and CEO of CF Industries.

BP recently signed a deal to sell 2.2 bcf of certified natural gas this year to CF Industries, which CF says “is an important step in CF Industries’ decarbonisation journey and reinforces our commitment to be at the forefront of low-carbon ammonia production.” Certified gas is produced by companies whose operations are independently verified by a third-party auditor who provide a factual assessment of methane emissions intensity, which is the ratio of methane emissions to natural gas produced.

Topsoe technology chosen for blue ammonia project

Copenhagen Infrastructure Partners (CIP) and the Sustainable Fuels Group (SFG) are aiming to produce blue ammonia from a facility on the US Gulf Coast, expected to be operational in 2027. Front-end engineering work has begun on the project, and will consist of two trains, each with a capacity of 4,000 t/d of ammonia production. It will use Topsoe’s SynCOR ™ steam reforming technology to create hydrogen from high-temperature steam and natural gas for ammonia production, with downstream capture and sequestration of the CO2 from the production, resulting in 90% well-to-gate emissions reductions compared to traditional ammonia production, abating 5.0 million t/a of CO2 emissions.

Søren Toftgaard, Partner in Copenhagen Infrastructure Partners, said: “We are developing a global portfolio of clean hydrogen and hydrogen-related products, such as clean ammonia. Blue ammonia is considered an important part of a successful energy transition, which can potentially help fill the ammonia shortage in Europe as well as being a steppingstone to the successful implementation of green projects, and we are excited to bring this project to the Gulf Coast region.”

Linde to build blue hydrogen facility in Texas coast

Linde has announced plans to build a $1.8 billion blue hydrogen facility on the Texas Gulf Coast designed to supply ammonia production. The plant, in Beaumont, Texas, is slated to begin production in 2025. The primary off-taker will be fertilizer manufacturer OCI, which is currently building a blue ammonia facility in Beaumont expected to produce 1.1 million t/a of ammonia. Linde’s facility will produce blue hydrogen using autothermal reforming with downstream carbon capture. The company says the facility will sequester over 1.7 million t/a of CO2 . It will be integrated within the company’s existing Gulf Coat pipeline network, allowing Linde to market the plant’s blue hydrogen to other downstream customers in the region wanting to decarbonise their operations.

“Our strategy is to support decarbonization by working with off-takers, like OCI, to safely and reliably supply low-carbon industrial gases at scale,” Linde CEO Sanjiv Lamba said. “With Linde’s track record in successfully executing complex projects, its extensive pipeline network, and support from the US Inflation Reduction Act, the company is well positioned to secure many more clean energy projects.”

BRAZIL

Agreement for green ammonia supply to Europe

Brazilian a renewable energy company Casa dos Ventos, together with energy efficiency Comerc Eficiência, has signed a partnership agreement with the TransHydrogen Alliance (THA) to enable the export to Europe of green ammonia produced in the industrial and port complex of Pecém (CIPP), in Ceará, Brazil. The plant will be built on a 60-hectare site with a capacity of up to 2.4 GW of electrolysis, producing 960 t/d of hydrogen, and. once all project phases have been implemented, will enable the production of 2.2 million t/a of ammonia and its export via the port of Rotterdam beginning in 2026.

“We want to use the abundant renewable resources in Ceará and neighbouring states to expand our low carbon energy solutions abroad”, says Lucas Araripe, CEO at Casa dos Ventos. The company and Comerc have already signed a pre-contract with the CIPP. “We are joining forces with a group of companies that will be able to contribute to the technological development of the project and with a portfolio of international clients”, explains Araripe.

The TransHydrogen Alliance is a consortium formed in early 2021 by Proton Ventures, Global Energy Storage (GES), Trammo DMCC and Varo Energy. Global Energy Storage (GES) is a specialist in the development, construction and operation of terminals worldwide, and is developing a new clean ammonia import terminal in Rotterdam, which will integrate with the supply chain of Pecém. Trammo DMCC is the largest independent international ammonia trader.

GERMANY

Hapag-Lloyd sign to evaluate ammonia as bunker fuel

Hapag-Lloyd AG has signed a memorandum of understanding with Mabanaft GmbH & Co. KG to evaluate options for the supply of ammonia as bunker fuel to Hapag-Lloyd in and around the port of Hamburg, and also Houston, Texas. The joint study will assess the viability of and the options for the safe handling of clean ammonia as a bunker fuel. Mabanaft is in the process of developing infrastructure in Hamburg for import and supply of clean ammonia, along with partner Air Products, as well as a larger infrastructure investment program to create a platform for low carbon fuel alternatives. The Hamburg import terminal is aiming for completion in 2026. With a fleet of 252 container ships and a total transport capacity of 1.8 million TEU, Hapag-Lloyd is one of the world’s leading shipping companies.

“We play an active role in shaping the energy transition and offer our customers innovative fuel solutions to reduce greenhouse gas emissions,” explains Volker Ebeling, Senior Vice President of New Energy, Chemicals & Gas at Mabanaft. “In shipping, we intend to support that transition for example through investments in ammonia production and the development of related supply infrastructure”.

BASF closes ammonia plant in Germany

BASF has announced the closure of one ammonia production train at its headquarters in Ludwigshafen due to high energy costs. The site was impacted the most by additional energy costs of e3.2 billion which were recorded by BASF globally last year, with higher natural gas costs accounting for 69% of the overall increase. BASF aims to save costs of more than e500 million by the end of 2024, and lower fixed costs by over e200 million annually by the end of 2026 in Ludwigshafen. Around 700 positions in production are likely to be impacted at the headquarters. BASF, however, is “confident” it will be able to offer most of the affected employees employment at other plants. One measure to lower costs at the site is to close its caprolactam plant, one of the two ammonia plants and associated fertiliser facilities. Chair of the board of executive directors, Dr. Martin Brudermuller said: “Europe’s competitiveness is increasingly suffering from over-regulation, slow and bureaucratic permitting processes, and in particular, high costs for most production input factors. All this has already hampered market growth in Europe in comparison with other regions. High energy prices are now putting an additional burden on profitability and competitiveness in Europe.” BASF aims to secure greater supplies of renewable energy for the plant. “We want to develop Ludwigshafen into the leading low-emission chemical production site in Europe,” Brudermuller said.

Heraeus given supplier reliability award by Nouryon

Heraeus Precious Metals has been awarded the “Supplier Reliability Award” for its supply reliability, collaboration, and close partnership with Nouryon, a global leader in specialty chemicals. Heraeus’ Catalytic Gauzes product line was recognized for its support of Nouryon during the Covid-19 outbreak in Shanghai, China. In order to maintain supply chains and production, employees from Heraeus temporarily moved to the Shanghai factory premises and were able to avoid production downtime. The company was able to successfully process all orders during this time and ensure on-time delivery to Nouryon.

MIDDLE EAST

KBR technology selected for low-carbon ammonia plant

KBR says that its ammonia technology has been selected for a large-scale 900,000 t/a low-carbon ammonia facility at an undisclosed location in the Middle East region. Under the terms of the contract, KBR will provide the technology licence, basic engineering design, proprietary equipment and catalyst for the plant. The company says that the project reinforces the region’s focus to emerge as a leader in low-carbon fuels by capitalising on ammonia as a vector for clean hydrogen.

“We are honoured that our leading low-carbon ammonia technology has been selected for this world-scale energy transition project,” said Doug Kelly, KBR president, Technology. “This project will be among the first large energy transition projects to come onstream in the world and we are excited to be part of this journey with several global industry leaders.”

UNITED ARAB EMIRATES

Brooge and Siemens to develop green ammonia plant in Abu Dhabi

Brooge Energy Ltd, a Cayman Islands-based infrastructure provider, has announced a partnership with Siemens Energy to build a photovoltaic solar farm to supply a green hydrogen and ammonia project in Abu Dhabi, UAE. Brooge will work with Siemens Energy to build an eventual 650 MW solar PV plant to supply BRE’s planned Phase 1 of the green ammonia project with renewable energy. Siemens Energy will serve as technical partner to Brooge, providing engineering, design, procurement, and construction services, including grid connection and operation and maintenance services. The two companies will partner to obtain the necessary project approvals from governmental agencies as a first step of the project.

SAUDI ARABIA

NEOM Green Hydrogen signs $8.5 billion finance deal

NEOM Green Hydrogen Co. has signed finance agreements with several financial institutions totalling to $8.5 billion in order to finance its clean energy facility. The project includes the development, financing, design, engineering, procurement, manufacturing, and factory testing of a world scale green hydrogen/ ammonia plant. Under a 30-year green ammonia offtake contract with Air Products, the project will also comprise transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of the facility. NEOM Green Hydrogen is a joint venture between Air Products, NEOM Co, and ACWA Power – which holds a 33.3% equity stake.

The total investment cost will be funded by a combination of long-term debt and equity, comprising $5.85 billion of senior debt and $475 million mezzanine debt facilities, arranged on a non-recourse project finance basis. It also includes $1.5 billion from the Saudi National Development Fund on behalf of the National Infrastructure Fund. The consortium of financiers includes First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFJ Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, and several others.

Gas allocation for new AN plant

The Saudi Chemical Holding Company says that its subsidiary Saudi Chemical Company, in partnership with another Saudi company, has received a gas allocation letter from the Ministry of Energy to set up a nitrate plant. The facility will produce 440,000 t/a of nitric acid and 300,000 t/a of ammonium nitrate, and will provide raw materials for several downstream industries in Saudi Arabia, including civil and defence explosives, missile, and rocket propellants, and smelting salts used in producing solar panels and pharmaceutical industries.INDIA

Offtake agreement for green ammonia plant

Uniper and Greenko ZeroC Private Ltd has signed a memorandum of understanding with Uniper to enter into exclusive negotiations for the offtake of green ammonia from Phase 1 of Greenko’s new green ammonia facility in Kakinada. Under the MoU, Greenko and Uniper intend to negotiate a pricing, supply and tenure structure for a supply and purchase agreement for 250,000 t/a of green ammonia.

Greenko’s Kakinada project is a multiphase green ammonia production and export facility which is eventually aimed to reach 1.0 million t/a of green ammonia capacity by 2027. The first phase will be powered by 2.5 GW of renewable assets in India and reinforced by Greenko’s Pinnapuram Integrated Renewable Energy Storage Plant (IRESP).

The CSBP Wesfarmers site at Kwinana.

PHOTO: CSBP

AUSTRALIA

CSBP looking to expand ammonia production

Australian fertilizer producer CSBP has proposed to build and operate a new 300,000 t/a ammonia plant within its industrial complex at Kwinina, Western Australia, to the state’s Environmental Protection Authority (EPA). The expansion aims to cater to growing demand for ammonia in Australia and is expected to be completed by the end of 2027, subject to EPA’s approval timeline, according to the company. It will be integrated with existing CSBP facilities at the site and will use natural gas from the Dampier-Bunbury natural gas pipeline as feedstock. CSBP has a current capacity of 255,000 t/a at the site, mainly used as raw material for downstream chemical and fertilizer products, as well as for supply to the domestic market.

CHINA

Green ammonia project claims to be world’s largest

Sinpoec has begun construction on a green hydrogen project at Ordos, Inner Mongolia. The project will use 390 MW of electrolysers to produce 30,000 t/a of green hydrogen as a feed to existing coal-based ammonia capacity at a cost of $830 million. Power will come from 450 MW of wind powered generation and 270 MW of solar power. The project includes 288,000 m3 of hydrogen storage, as well as a pipeline network to deliver hydrogen to the nearby Zhongtian Hechuang Ordos Coal Deep Processing plant. Sinopec has ambitions to be producing 2 million t/a of green hydrogen by 2025. It is also building its 20,000 t/a Kuqa plant in Xinijang which will supply hydrogen to Sinopec’s Tahe refinery.

PARAGUAY

Power agreement signed for green ammonia

NeoGreen Hydrogen Corp. has signed a long term 75MW baseload power purchase agreement with ANDE, the national electricity company of Paraguay. The power, from the Itaipú hydroelectric dam, will supply a green nitrogen project in Tres Fronteras, an area where Brazil, Paraguay and Argentina converge, close to the Iguazu and Parana rivers. The initial design concept is for 10,000 t/a of green hydrogen that will be converted into ammonium nitrate for use as part of NPK fertiliser blends, at an estimated investment cost of $400 million. A final investment decision for the project is expected by Q4 2023, and green hydrogen and ammonia production is targeted for mid-2026.

NeoGreen has worked with its consortium partners and engineering, management, and development consultancy Mott MacDonald to finalise a number of studies, and is now looking to move the Tres Fronteras project towards the front end engineering and design stage.