Nitrogen Industry News

Nitrogen Industry News

UNITED KINGDOM

CRU, Argus launch new low-emissions ammonia price service

Mining, metals and fertilizer business intelligence company CRU has launched a new low-emissions ammonia (LEA) price assessment in its Fertilizer Week price reporting service. The price takes a value-based approach, whereby a premium on the Northwest European ammonia price is calculated on an emissions-mitigated basis, and leverages CRU’s proprietary nitrogen asset emissions data combined with weekly European carbon prices to calculate the value of emissions mitigated. CRU says that it has leveraged its Emissions Analysis Tool to develop the premiums on an emissions-mitigated basis as opposed to a cost basis, allowing end-users to assess how the switch to LEA can deliver value to their business while contributing to their decarbonisation strategies. The Emissions Analysis Tool is a comprehensive asset-byasset emissions dataset for the nitrogen industry.

Energy and commodity price reporting agency Argus has also launched a suite of new cost indicators for the production of ammonia made with renewable fuels or with fossil fuels where carbon capture, utilisation and storage has been applied. Argus says that it now publishes 312 costs of production for decarbonised ammonia at key locations around the world. This supplements the company’s existing ‘grey’ ammonia market coverage, which assesses market prices for ammonia made with fossil fuels where the carbon is not mitigated. These new indexes are published in the Argus Hydrogen and Future Fuels service and complement the more than 470 decarbonised hydrogen costs already available.

GERMANY

Modular plants for green ammonia

Ammonia licensor thyssenkrupp Uhde and IDESA Industrial Plants SLU (IDIP) have signed a memorandum of understanding (MoU) to cooperate on developing a joint project within the sector for the design, procurement, fabrication, and construction of modularised green ammonia plants. The modularised solutions will be based on globally proven uhde ® ammonia technology, which has already been applied in over 130 large-scale chemical plants across the world. The cooperation between the two companies will combine IDIP’s extensive know-how in the fabrication of skids and modules with thyssenkrupp Uhde’s wide experience in the engineering and procurement of ammonia plants, leading to synergies, cost savings, improved fabrication efficiency, increased competitiveness and risk mitigation. At the same time, it will unlock capacity constraints, improve supply chains and enable thyssenkrupp Uhde to prepare for the increased demand that is to come in the wake of the enormous future investments in green ammonia markets that are required to secure successful energy transition.

Liege Robson, COO thyssenkrupp Uhde said: “We at thyssenkrupp Uhde are committed to the success of the green transformation on a large scale. This includes forging new partnerships and developing our technologies to make a decisive contribution to the decarbonisation and CO 2 reduction process. The construction of numerous green ammonia plants is the key to a successful energy transition. By working together with IDIP on the modularisation of these plants, we can decisively shorten the construction time of these plants and thus accelerate the global energy transition.”

ADNOC looking at low-carbon ammonia in Germany

The Abu Dhabi National Oil Co. (ADNOC) says that it is exploring opportunities to support the climate-neutral transformation of industry through the creation of a low-carbon ammonia value chain with state government and industry representatives in Germany’s North Rhine-Westphalia region. Last year, the company completed its first shipment of low-carbon ammonia to Germany.

The announcement was made following the signing of a memorandum of understanding (MoU) between the government of North Rhine-Westphalia, ADNOC and Currenta GmbH & Co. OHG, a chemical industry services provider that manages and operates one of the largest chemical sites in Europe, Chempark, with locations in Leverkusen, Dormargen and Krefeld-Uerdingen, in North Rhine-Westphalia.

Mona Neubaur, deputy prime minister of North Rhine-Westphalia said: “We will do our utmost to expand the capacities for the generation of renewable energies and for the production of other climate-neutral energy carriers such as green hydrogen in this country as much as possible. However, it is also clear that we will have to import various green energy sources in large quantities in order to cover our needs and to achieve our climate protection goals. We are now building partnerships and a broad import infrastructure to supply our industry. The basis for our cooperations is diversification with many countries.”

The primary focus of the agreement will be the production and transportation of low-carbon ammonia and its application as a fuel in energy generation, including industrial-scale testing at Currenta’s site in Dormagen.

CHINA

Stamicarbon to license its largest ultra-low energy urea plant

Stamicarbon has signed a contract covering the process design package, licensing and equipment supply for an ultra-low energy grassroots urea plant in Jiangxi province, China. This will be the largest Stamicarbon low energy plant, with a design capacity of 3,850 t/d and the seventh plant based on this innovative design. Stamicarbon will deliver the process design package and the proprietary Safurex ® high-pressure equipment and associated services for the urea melt and prilling plant. Unlike previous Ultra-Low Energy plants, which featured Pool Reactor technology, this design will apply the Ultra-Low Energy principle to the Pool Condenser. The Ultra-Low Energy design allows heat supplied as high-pressure steam to be used three times instead of two, reducing steam consumption by about 35% and cooling water consumption by about 16% compared to traditional CO 2 stripping processes, as demonstrated in two plants currently in operation.

“This award is significant, being Stamicarbon’s largest Ultra-Low Energy urea plant to date and the first plant where this breakthrough technology is applied to a pool condenser. It shows Stamicarbon’s commitment to innovation and technology development to improve the sustainability of the fertilizer industry,” said Pejman Djavdan, Stamicarbon CEO.

CANADA

Pre-FEED study on renewable ammonia project

Hy2gen AG has commissioned Technip Energies to complete a pre-FEED study for its renewable hydrogen and renewable ammonia project, named COURANT, located in Baie Comeau, Quebec. The pre-FEED study began in March 2023 and will provide Hy2gen with the plant’s process configuration, selected technologies, estimate the plant’s capital requirements and clarify the site’s operating costs. The study will provide necessary information to initiate the required environmental and stakeholder engagement steps, and is expected to be completed before the end of the year.

Following a completed FEED and positive final investment decision, Hy2gen expects the plant to be mechanically completed by mid-2028. Production of climate-neutral renewable ammonia is expected to start shortly thereafter, making it Hy2gen AG’s first Canadian project. The hydrogen will be produced via electrolysers and the nitrogen will be produced in an air separation plant. The energy to operate both plants will supplied from hydropower. The expected production volume of ammonia is designed for 220,000 t/a.

SAUDI ARABIA

Aramco and Linde to develop ammonia cracking technology

Saudi Aramco and Linde Engineering have signed an agreement to jointly develop a new ammonia cracking technology. The collaboration between the two companies will combine Linde Engineering and Aramco’s experience and capabilities in industrial research and development, lower-carbon hydrogen, and ammonia cracking technology.

A potential differentiator of this new technology is the ammonia cracking catalyst, jointly developed by Aramco and the King Abdullah University of Science and Technology (KAUST), which will be evaluated against other catalysts. Aramco and Linde Engineering plan to build a demonstration plant in northern Germany to showcase this new ammonia cracking technology. Linde Engineering intends to offer this technology to current and new customers, creating new commercial opportunities within the global lower-carbon energy supply chain. The emerging lower-carbon ammonia business may prove to be key in bridging the gap between a country’s domestic renewable energy production capacity and total energy demand.

John van der Velden, Senior Vice President Global Sales & Technology at Linde Engineering, said: “Effective ammonia cracking technology supports the world’s urgent need for decarbonisation. By completing the missing link in the export chain, cleaner energy can be shipped from regions with high renewable and clean energy potential to those with more limited resources. We look forward to working closely with Aramco to develop and commercialise this important technology, creating new business opportunities for Linde Engineering and Aramco.”

BULGARIA

Unplanned outage at Neochim

Bulgarian fertilizer producer Neochim says that technical issues caused an unplanned stoppage at its ammonia plant. The emergency shutdown did not affect the operations of the plant’s ammonium bicarbonate and nitric acid production units, Neochim said in a bourse filing. Since October, Neochim has had six unplanned stoppages due to technical issues, most recently shutting down three units in late March as a result of a technical failure at the nitric acid plant.

UNITED ARAB EMIRATES

Feasibility study complete on green ammonia plant

Brooge Energy Ltd says that a feasibility study of its proposed green hydrogen and ammonia plant, conducted by thyssenkrupp Uhde, has been completed and delivered. Brooge Energy engaged thyssenkrupp in September 2022 to undertake a technical concept study and cost estimate for the proposed green ammonia plant, which is based on thyssenkrupp nucera’s alkaline water electrolysis and thyssenkrupp Uhde’s ammonia synthesis technologies.

The plant is planned in two phases up to a total of 1,950 t/d export focused green ammonia production located in Abu Dhabi. The plant will produce green ammonia using green hydrogen from solar energy with water and air as raw materials. The study involved a comprehensive techno-economic analysis of the powerto-ammonia value chain using thyssenkrupp’s proprietary modelling tool. The goal was to evaluate the influence of various factors on the overall cost-effectiveness of the green ammonia plant. This analysis explored multiple scenarios to identify optimal plant designs coming along with various supporting documentation dealing with technical and execution concepts on a fully integrated approach.

BELGIUM

Air Liquide to build ammonia cracking pilot plant

Air Liquide says that it will build an industrial scale ammonia cracking pilot plant in the port of Antwerp. The plant will make it possible to convert, with an optimised carbon footprint, ammonia into hydrogen, by combining a novel efficient process with Air Liquide’s proprietary technologies. The facility is planned to be operational in 2024. The Flemish Government, through the VLAIO (Flemish Agency for Innovation and Entrepreneurship), has confirmed financial support to the project.

Michael J. Graff, Executive Vice President, Air Liquide Group, said: “Ammonia cracking complements Air Liquide’s already thorough portfolio of hydrogen technologies and adds yet another technological solution to enable the development of a hydrogen global market. More than ever, the Group is committed to making hydrogen a key element of the fight against climate change, in particular for the decarbonisation of heavy industry and mobility.”

UNITED STATES

Yara and Enbridge plan large scale blue ammonia plant

Norwegian fertilizer manufacturer Yara and Canadian pipeline company Enbridge say that they plan to invest up to $2.9 billion to build a low-carbon blue ammonia plant in Texas. The plant, which would be Yara’s biggest, would be built at an Enbridge oil storage and export facility near Corpus Christi, with production to start around 2027-28. Both companies have not yet made final investment decisions. The plant would supply 1.2-1.4 million t/a of low-carbon ammonia, with about 95% of the CO2 generated from production captured and transported for nearby permanent storage.

Yara intends to buy all of the plant’s output for feedstock in its global production system, including Europe, as well as for new clean ammonia markets such as shipping fuel. The project was planned before last year’s Inflation Reduction Act (IRA), but the increase in carbon storage tax credits in that law makes the plant more attractive, Yara says. The IRA offers companies a tax credit of as much as $85 per tonne of captured carbon stored underground.

Incitec Pivot sells US ammonia plant

Explosives and fertilizer maker Incitec Pivot has sold its US ammonia plant at Wagga-man to CF Industries as part of a reported $2.0 billion deal. The plant will continue to supply at least 200,000 t/a of ammonia to Incitec’s Dyno Nobel Americas ammonium nitrate plant; about 20% of Waggaman’s output. The remainder is sold to other customers within the USA. The Waggaman plant was completed in 2016 at a cost of $850 million and has a nameplate capacity of 880,000 t/a.

“With the decision to sell this world-class asset, we will reduce our excess exposure to commodity and operating risks while maintaining Waggaman’s strategic value,” Incitec chief executive Jeanne Johns said. Incitec is planning to separate its Pivot Fertilisers and Dyno Nobel explosives businesses into two listed entities as it seeks to unlock shareholder value by sharpening each division’s focus on capital allocation and growth opportunities. Cash from the sale will be used to pay down debt and provide options for the demerger of its fertilizer business.

KBR to license ammonia plants

KBR has signed a memorandum of understanding (MoU) with Atlas Agro AG to license KBR’s K-GreeN® technology for Atlas’ planned investment in a series of green ammonia plants. Under the terms of the MoU, KBR will provide technology licensing, basic engineering design, proprietary equipment and catalyst for the plants, which will produce zero-carbon nitrogen fertilizers. The engineering design for the first plant, located in the United States, began in March 2023.

Power supply agreement for green ammonia plant

NTPC Renewable Energy Ltd has signed an agreement with Greenko ZeroC Pvt Ltd to supply 1.3 GW of energy around the clock to power Greenko’s green ammonia plant development at Kakinada. The energy company is a wholly owned subsidiary of state-run NTPC Limited. Greenko plans to export the green ammonia generated to the European market. Uniper SE, the German energy company, is in talks with Greenko to take 250,000 t/a of green ammonia. Signatories to the supply agreement included Rajiv Gupta, chief general manager, NTPC Renewable Energy, and Mahesh Kolli, founder and joint MD, Greenko Group.

SOUTH KOREA

Lotte Fine Chemical to tap OCI for low carbon ammonia

OCI has signed a memorandum of understanding (MOU) with Lotte Fine Chemical for the supply of low-carbon and green ammonia, with first shipments starting this year from OCI’s US facilities. The companies are also looking to cooperate to build a global supply chain of bunkering for ammonia-powered vessels in Ulsan, Korea, which are expected to be commercialised from 2025 onwards. With this MOU, OCI will supply Lotte Fine Chemical from OCI existing low carbon ammonia production capacity in Texas starting this year. Lotte Fine Chemical will introduce OCI’s ISCC Plus bio-ammonia, derived from bio-methane, for the first time in Korea, for supply to its domestic customers. When bio-certified, plastic products made of this material will be eligible for tax benefits when exported to Europe.

Future supply is expected to come from OCI’s new world-class large scale blue ammonia greenfield project under construction in Texas that is expected to be operational in early 2025, as well as from Fertiglobe’s green ammonia production facility in Egypt (Africa’s first green hydrogen project), which recently commissioned its first phase. Fertiglobe is a strategic partnership between OCI and Abu Dhabi National Oil Company (ADNOC). OCI, together with Fertiglobe, is one of the largest producers and traders of ammonia and methanol globally.

BANGLADESH

Carbon capture ammonia plant nearing completion

Construction work at the Ghorashal-Polash Urea Fertilizer Project (GPUFP) is nearing completion. More than 850 Chinese employees from the China National Chemical Engineering & Construction Corporation Seven Ltd. (CC7), in collaboration with its Japanese partner Mitsubishi Heavy Industries (MHI), have been working round the clock to complete the large scale project as scheduled. According to reports in the Chinese state media, 90% of construction work is now complete, and the project is running two months ahead of schedule, with completion now expected in December 2023. Once completed, it will become the biggest fertilizer plant in Bangladesh and one of the largest in South Asia, with an estimated daily production capacity of 2,800 t/d of urea and 1,600 t/ds of ammonia. The plant is sited in the Narsingdi district, 51 km northeast of the capital city of Dhaka. Current fertilizer demand in Bangladesh is around 2.5 million metric tons per year, of which this project will supply around 1.0 million t/a. It will also become the first-ever green fertilizer plant in Bangladesh, using carbon capture.

PAKISTAN

Gas supply agreement to end May

The Directorate General of Gas (Petroleum Division) has directed Sui Northern Gas Pipeline Limited (SNGPL) to supply gas to two urea fertilizer plants for a temporary period without subsidy as agreed by the cabinet Economic Coordination Committee (ECC). The ECC based its decision on a submission by the Ministry of Industries and Production regarding the country’s urea fertilizer requirement for the 2023 kharif season. In order to produce sufficient fertilizer domestically the gas will be supplied to Fatima Fertilizers and Agritech to the end of May 2023. Pakistan’s fertilizer production continues to be dogged by gas supply constraints. Demand for urea is estimated to be 3.2 million t/a, whereas production is estimated to be around 2.9 million t/a, with a shortfall of 0.3 million t/a.

INDIA

Larsen & Toubro to build IGAN plant

Chambal Fertilizers has awarded Larsen & Toubro the engineering procurement and construction contract to build an industrial grade ammonium nitrate (IGAN) plant as well as a an associated nitric acid plant at Gadepan near Kota in Rajasthan province. Capacities for the plants will be 240,000 t/a for the IGAN plant and 210,000 t/a for the nitric acid plant, both to license technology from Casale SA.