Nitrogen Industry News

Nitrogen Industry News

EGYPT

EPC contract awarded for new ammonium nitrate plant

Maire SpA subsidiary Tecnimont, together with Orascom Construction SAE, have been awarded a lump sum turn-key engineering procurement and construction contract for new nitric acid and ammonium nitrate plants by the Egyptian Chemical Industries Company (‘Kima’). The contract value is approximately $300 million, of which about $220 million relates to Tecnimont activities. Finalisation of the contract is subject to successful execution of the financing package. The scope of work includes mainly engineering, supply of all materials and equipment – to be performed by Tecnimont – as well as construction activities, to be carried out by Orascom Construction.

The plants are expected to be completed in the first half of 2026, and will produce 600 t/d of nitric acid, which will be fully turned into 800 t/d of fertilizer-grade, granulated ammonium nitrate. The plants’ output will be sold to local farmers, as well as exported to international markets. The project follows on from Kima’s large scale ammonia and urea plants, also built by Tecnimont and Orascom Construction and successfully started up in 2020 in the same industrial complex, located in the Aswan Governorship, Upper Egypt.

Alessandro Bernini, CEO of Maire, commented: “We are really honoured to keep on supporting a prominent player such as Kima in the development of the Egypt’s fertilizer value chain. With this award we further consolidate a long-lasting, fruitful relation and strengthen our industrial footprint in North Africa, thanks to our strong capability in executing EPC projects.”

TURKEY

Johnson Matthey/Uhde to supply IGSAS ammonia plant

Engineering partners thyssenkrupp Uhde and Johnson Matthey have been commissioned by IGSAS – stanbul Gübre Sanayii AŞ, to supply a new ammonia converter cartridge. The cartridge is intended to significantly reduce the pressure in the synthesis loop of the IGSAS ammonia plant while maintaining the nameplate capacity of 1,200 t/d. It will be based on a modular design with removable catalyst beds which enable better accessibility during catalyst filling, and axial-radial flow beds for lower pressure drop, etc. The cartridge, which will be installed in the existing pressure shell, will bring further benefits in terms of safety as no major welding activities are required during installation. The Uhde-designed converter cartridge will use Johnson Matthey’s high-performance catalyst KATALCO ™ 74-1. This combination provides the potential for a further increase in plant capacity in the future, for example with the addition of green ammonia production.

The currently installed cartridge, based on a design by thyssenkrupp Uhde, has reached an extraordinarily long lifetime of 36 years in operation. Usually, replacements are necessary after two catalyst exchange cycles, approximately 20 years. The new equipment is under fabrication, and start-up is scheduled for mid-2024. thyssenkrupp Uhde will perform full supervision services during converter opening, catalyst unloading, cartridge disassembly, converter inspection, cartridge assembly, catalyst filling/activation, startup and performance testing at this time.

Kutay Durna, factory manager at IGSAS, said: “With this upgrade of our plant, we are ready for the future. Key decision points for choosing thyssenkrupp Uhde were the proven reliability of their products combined with reducing the energy consumption in our Kocaeli plant.”

UNITED STATES

Contract for new nitrogen complex

KT-Kinetics Technology (KT) has been awarded the early engineering works contract for a new green fertilizer complex in North America by a group of private investors. The complex will include ammonia, urea, and nitric acid production, as well as green urea ammonium nitrate (UAN) as a final product to be distributed in the local fertilizer market. The early works, to be carried out on a reimbursable basis, are aimed at defining the design and the main aspects of the project. Upon successful completion of the early works, and subject to the client’s final investment decision, the activities will enter into the EPC phase, which will be carried out by KT in conjunction with another Maire group subsidiaries, Tecnimont, NextChem as technology integrator and Stamicarbon as licensor for the green ammonia technology, and manager of the other process units included in the scope. The complex will be one of the biggest facilities in North America entirely dedicated to the production of green fertilizers. Stamicarbon says that the green ammonia plant will have a capacity of 450 t/d and is expected to start up in 2026.

“Stami Green Ammonia is at the heart of Stamicarbon’s innovation program, and we are excited to see this technology implemented in several projects around the world,” said Pejman Djavdan, Stamicarbon CEO. “It represents a significant leap forward for the production of green fertilizers based on renewable resources.”

EUROPEAN UNION

Ammonia the sticking point for renewable energy target

EU attempts to pass a law committing members to producing 42.5% of their energy from renewable sources by 2030 led to some hard bargaining in mid-June as France pushed for exemptions for hydrogen from nuclear power and legacy gas-based ammonia plants. A group of member states led by France held up approval of the EU renewable energy targets, pushing for more favourable treatment of CO 2 -free nuclear energy and an opt-out for ammonia plants that may struggle to switch from gas. France generates around 70% of its electricity from nuclear sources, and has urged the rest of the EU to consider hydrogen generated from electrolysis using nuclear energy as low carbon, even if it is not strictly ‘renewable’. Other states pushed back against reopening discussions, which have already taken months to negotiate, and Germany and Spain have been against regarding nuclear energy as a green energy option. Sweden attempted to produce a compromise ‘recital’ or foreword to the agreement which could state principles without formally reopening negotiations. This says that a “limited number” of ammonia facilities could be given an exemption so long as they could demonstrate that they were transitioning to a phase out of fossil fuel generated hydrogen.

NETHERLANDS

Yara and Cepsa to set up “clean hydrogen corridor”

Yara Clean Ammonia and Cepsa have entered into a strategic partnership to set up the first clean hydrogen maritime corridor between the ports of Algeciras in Spain and Rotterdam for the decarbonisation of European industry and maritime transport. The partnership envisages Yara supplying Cepsa with clean ammonia volumes, which will allow the energy company to get a head start in establishing the clean hydrogen corridor and lead the initiative to serve industrial and maritime customers in Rotterdam and Central Europe.

“Today’s agreements are a crucial step towards the long-term viability of the Andalusian Green Hydrogen Valley and the implementation of the first maritime corridor of sustainable fuels that will link the south with the north of Europe. Green hydrogen and its derivatives are the fastest, most viable and competitive solution to accelerate the energy transition in heavy transport and ensure energy independence in Europe. The agreements announced today give our project crucial access to markets, customers and distribution infrastructure: three key elements to unlock the potential of our Hydrogen valley. This is major news for the decarbonization of European shipping and industry and for the planet,” said Maarten Wetselaar, CEO of Cepsa.

INDONESIA

Nuclear plant could supply low carbon hydrogen for ammonia

A Danish start-up has entered a $4 billion agreement to build a nuclear-powered ammonia plant in Indonesia. Copenhagen Atomics is leading a four-party group from Denmark that has signed a MoU with two Indonesian state-owned enterprises, to develop an ammonia facility in the city of Bontang. The plant is set to be powered by next-generation nuclear reactors and have a capacity of 1.0 million t/a. Copenhagen Atomics’s co-founder, Thomas Jam Pedersen, expects the plant to be able to produce the world’s cheapest low-carbon ammonia.

“I believe that with this plant in Indonesia we can get the price of ammonia down to $500 per ton,” he says. That compares to $720-1,400/t for wind or solar-generated ammonia in 2020, according to the International Renewable Energy Agency.

SPAIN

Iberdrola to build green ammonia plant

Spanish power company Iberdrola says that it will build the first green ammonia plant in southern Europe, using European funds and an investment estimated at euro 750 million. The company did not specify which country the plant will be in, but it is known to be working with Fertiberia on conversion of some of the latter company’s ammonia capacity at Puertollano in Spain to green production.

The announcement is part of a framework agreement signed by the energy company with Trammo, the world’s largest maritime trader and distributor of anhydrous ammonia, for the sale and purchase of up to 100,000 tonnes of green ammonia per year from 2026. The facility will be supported by the construction of 500MW of new renewable energy. It will also contribute to the creation of industrial and innovation opportunities in a growing market with a high export component. The plant’s green ammonia production will be purchased and sold by Trammo to contribute to the decarbonisation of northern European industry.

UKRAINE

Ammonia pipeline reportedly damaged

The Togliatti-Odessa ammonia pipeline appears to have become damaged during the latest round of fighting in Ukraine. Both Russian and Ukrainian sources identified the place of the breach as Masyutivka in northeastern Ukraine, in Ukrainian-controlled territory but close to the front line, but the Russians blamed a Ukrainian sabotage group, while Ukraine said that the pumping station had been damaged by Russian artillery fire. Resumption of ammonia supplies along the pipeline were part of negotiations concerning the Black Sea grain export deal. Russia had been pushing for resumption of exports via the pipeline and other fertilizer exports as a quid pro quo for allowing the Ukrainians to resume exports of grain from Odessa. The Russian foreign ministry has said repairing the pipeline could take 1-3 months.

In a separate incident, there were also accusations by Ukraine that an ammonia tank at the Crimean Titan plant has been rigged with explosives by Russian defending forces, potentially releasing 200 tonnes of ammonia. The Crimean Titan plant is located in Armyansk, a region on the northernmost tip of Crimea. It is one of the two land-based entryways into the Crimean peninsula from Ukraine.

FINLAND

Hydrogen and ammonia production at Kokkola

H2Cluster Finland, a network of companies and industrial associations, says that one consortium member, Finnish project developer Flexens, is looking to expand the project by developing green hydrogen and ammonia production with a capacity of 350MW of electrolysis. Kokkola, on the west coast of Finland, has existing chemical industry and a deep-water port.

Jim Häggblom, Senior Project Manager at Flexens, said: “The port is one of the two that handle ammonia in Finland, and there are also storage facilities for ammonia right next to the port in the Kokkola Industrial Park.” Flexens aims to start production of green ammonia by 2027, with an initial planned capacity of 200,000 t/a. Häggblom continued: “Hydrogen is already being produced in the area, which guarantees an established and safe operating environment. There is also plenty of wind power available and a strong power grid. Besides using hydrogen for ammonia production, we will also be able to sell it to others. There are already potential customers in the area. We also have an opportunity to deliver waste heat from hydrogen production to the district heating network and offer steam from ammonia production to factories nearby.”

Häggblom estimated the whole investment to rise to over e700 million which will be provided by investors and supplemented by grants. Flexens’ team will be supported by French hydrogen producer Lhyfe, which took a 49% stake in Flexens in March.

SAUDI ARABIA

NEOM Green Hydrogen Company achieves financial closure

NEOM Green Hydrogen Company says that it has now achieved financial closure on the world’s largest green hydrogen production facility, with a total investment value of $8.4 billion. The plant is being built at Oxagon, in Saudi Arabia’s region of NEOM. NGHC has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility. Air Products has already awarded major contracts to various technology and construction partners.

NEOM Green Hydrogen Company has also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain. An equal joint venture between ACWA Power, Air Products and NEOM, NGHC’s plant will integrate up to 4GW of solar and wind energy to produce up to 600 t/d day of carbon-free hydrogen by the end of 2026, eqivalent to 3,600 t/d of green ammonia.

Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company, and Chief Executive Officer, NEOM said: “This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM’s vision to accelerate renewable solutions. At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030’s sustainable development goals.”

Seifi Ghasemi, Chairman, President and Chief Executive Officer, Air Products, added: “Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable way. Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets. Producing and exporting green ammonia supports the decarbonisation of these heavy-duty transportation and industrial sectors and will save the world about five million tonnes of carbon dioxide per year. As the primary EPC contractor and system integrator for the facility, we are proud of the significant progress made with engineering and have awarded all major subcontracts for the project. Land preparation is also complete, construction is well underway, and the joint venture team is in place and actively executing to bring green energy to the world by the end of 2026.”

INDIA

Deepak Fertilisers to commission ammonia plant

Deepak Fertilisers and Petrochemicals is commissioning its new $530 million ammonia plant at Taloja in Maharashtra. The new 500,000 t/a of capacity will take the total ammonia capacity at the site to 628,700 t/a. KBR and Toyo technology has been licensed for the plant. Gas supply arrangements covering2 /3 of the plant’s requirements are already in place, according to Deepak. The expansion will reportedly save the cost of importing ammonia by $75-80/tonne and improve margins for the company. Deepak has been importing ammonia from the Middle East via the JNPT at Mumbai and transporting it to Taloja via 30,000 road tankers trips per year.

CANADA

Ammonia supply chain to Japan

Pembina says that it has signed an agreement with Japanese trading firm Marubeni to establish an end-to-end blue ammonia supply chain that will link Western Canada to Japan and other Asian markets. The memorandum of understanding was signed on May 30th and says that the two companies will jointly develop a production facility on Pembina-owned lands. The facility will produce low carbon hydrogen and ammonia near Fort Saskatchewan, Alberta. The plant is anticipated to produce up to 185,000 t/a of blue hydrogen that will be converted into 1 million t/a of low carbon ammonia. It will use carbon capture technology that will reduce a “significant amount” of CO2 emissions, Pembina said. The ammonia would be transported via rail to Canada’s western coast for shipping to Japan and the wider Asian market.

BOLIVIA

YPFB issues tender for urea project

Bolivia’s state oil company YPFB has invited tenders for the front end engineering and design (FEED) of a proposed $1.29 billion ammonia and urea plant. The work will determine the project’s technical, financial, economic, legal, social and environmental feasibility, and includes a market study, identifying a location, selecting the best technologies, and drafting technical specifications for the bidding rules to be used in the next stage.

Bolivia currently has a plant, PAU, at Bulo Bulo with the capacity of 1,200 t/d of ammonia and 2,100 t/d of urea. In spite of a troubled development and production history, it reportedly produced 364,000 tonnes of urea in 2022 and is forecast to produce 600,000 t/a in 2023. According to YPFB, PAU has reduced Bolivia’s nitrogen fertilizer imports by 99%. The state operator estimates that the new plant’s capacity will be double that of the existing one and will aim to supply export markets such as Brazil, Peru, Paraguay and Argentina.

CHINA

First application for UAS granulation process in China

China Tianchen Engineering Corporation has selected Casale’s fluid bed urea-ammonium sulphate (UAS) granulation process for the Xinjiang Xinji Energy and Chemicals Co. Ltd.’s Recycling Economy Joint Chemical EPC project. The plant will be located in Tiemenguan city, Xinjiang, China, and will be commissioned by 2025.

Designed to be capable of producing UAS product with a flexible ammonia sulphate content up to 20%, when put into operation the granulation unit will have a production capacity of 1,800 t/d of UAS at maximum ammonia sulphate content. Casale will provides design services and the license for its patented UAS granulation process as well as proprietary equipment to be put into operation in the plant.

BULGARIA

New fertilizer complex for Agropolychim

Casale and Agropolychim have signed an agreement which will ultimately lead the latter to double its nitrogen-based fertilizer production capacity of up to 1.5 million t/a of AN, CAN and UAN. As part of the agreement, Casale will license and engineer a new state-of-the-art dual pressure nitric acid plant that will enhance local green energy production. The plant is planned to be commissioned before the end of 2027. Agropolychim has been operating a dual pressure nitric acid plant based on Casale technology since 1973.