Nitrogen Industry News

Nitrogen Industry News

UNITED STATES

OCI to sell Iowa fertilizers to Koch

The Iowa Fertilizer Company plant at Wever

PHOTO: ORASCOM

OCI Global says that it has reached an agreement for the sale of 100% of its interest in its large-scale nitrogen fertilizer subsidiary the Iowa Fertilizer Company LLC, located in Wever, Iowa, to Koch Ag & Energy Solutions for $3.6 billion. Completion of the transaction remains subject to US anti-trust approval and other customary closing conditions. The transaction is expected to close in 2024. Morgan Stanley & Co. International plc is serving as financial advisor to OCI on the transaction. IFCO produced 1.2 million t/a of urea ammonium nitrate (UAN) in 2021 and 700,000 t/a of anhydrous ammonia, as well as 700,000 t/a of diesel exhaust fluid (DEF).

The sale follows a strategic review in March 2023, with the objective of unlocking value for OCI’s shareholders. The transaction is expected to enable OCI to explore value added opportunities in energy transition, building on its early mover lower-carbon ammonia and green methanol platforms.

Nassef Sawiris, Executive Chairman of OCI commented: “Today’s announcement marks an evolutionary step in our journey to create value for shareholders, and to enhance our focus on efforts in lower carbon initiatives. IFCO was the first world-scale greenfield nitrogen fertilizer facility built in the United States in over 25 years. We are confident that under Koch’s stewardship, IFCO will be well positioned for its next phase of growth. Our strengthened balance sheet will support the acceleration of our strategy in the field of decarbonisation projects, driving future growth and supporting the energy transition goals we share with many of our stakeholders, establishing us as a leader in the low carbon space.

JAPAN

Approval in principle for ammonia FSRU

ClassNK has issued an approval in principle for an ammonia Floating Storage and Regasification Unit (FSRU) jointly developed by Mitsui OSK Lines and Mitsubishi Shipbuilding. An FSRU is a floating facility designed for liquified gases and equipped with storage tanks and a regasification facility that receives liquified gas on the water, vaporises it and sends it ashore, with the advantage of lower costs and shorter construction periods than those of the equivalent facilities onshore. The new FSRU developed by MOL and Mitsubishi Shipbuilding this time applies this technology to ammonia, and is expected to contribute to the development of ammonia value chain as an alternative carbon neutral fuel.

ClassNK says that it carried out a review of a conceptual design of the ammonia FSRU based on its Part N of Rules for the Survey and Construction of Steel Ships for ships carrying liquefied gases in bulk, Guidelines for Floating Offshore Facilities for LNG/LPG Production, Storage, Offloading and Regasification,” and other relevant rules, and examined risk assessment taking into account the results of gas dispersion study.

EGYPT

Agreement to develop green hydrogen project

Saudi-listed ACWA Power has signed a framework agreement, following a memorandum of understanding that was signed on December 7th 2022 to outline the development of the first phase of its green hydrogen/ammonia project in Egypt. Projected capacity will be 600,000 t/a of green ammonia, with an investment in excess of $4 billion, with the intention of scaling up to a second phase with a potential capacity of 2 million t/a. The agreement was signed with the Sovereign Fund of Egypt, the Suez Canal Economic Zone, the Egyptian Electricity Transmission Company, and the New and Renewable Energy Authority in the presence of Dr. Moustafa Madbouly, prime minister of Egypt. The hydrogen will be generated electrolytically from wind and solar plants.

ACWA Power has been rapidly expanding its green portfolio, including its involvement in the NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM to create the world’s first utility-scale green hydrogen plant in the northwest of Saudi Arabia. The project will be capable of producing 1.2 million t/a of green ammonia. The first wind turbines were delivered to the site in October. On November 27th, the company also broke ground on its second green hydrogen project, in Uzbekistan. The first phase of this project will be capable of producing 3,000 t/a of green hydrogen, with the intention to expand to a second phase. Once the second phase is complete, 2.4 GW of wind energy will power the production of 500,000 t/a of green ammonia. ACWA also signed agreements during COP28 for green hydrogen projects in Jordan and Indonesia.

Marco Arcelli, Chief Executive Officer of ACWA Power said: “As a first mover in green hydrogen, ACWA Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world. Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition.”

Fertiglobe ships certified renewable ammonia

Fertiglobe, the strategic partnership between ADNOC and OCI Global says that it has completed the first shipment of the internationally recognised renewable ammonia with ISCC PLUS (International Sustainability and Carbon Certification) certification. The renewable ammonia was produced at the company’s facilities in Egypt using renewable hydrogen from its pilot Egypt Green Hydrogen electrolyser and will go into the production of near-zero emissions synthetic soda ash – a key ingredient in laundry powder – for Unilever. The shipment was sent to Tuticorin Alkali Chemicals and Fertilisers in India, who will produce the soda ash for Unilever’s India business, Hindustan Unilever (HUL).

Ahmed El-Hoshy, CEO of Fertiglobe and OCI Global, commented: “This shipment is an important milestone for Fertiglobe, a breakthrough in producing and supplying renewable ammonia to the world, and for the ongoing execution of our hydrogen roadmap. As a pioneer in renewable ammonia, we see immense potential in its ability to decarbonize industries and drive the global energy transition. Looking ahead, we are committed to leveraging our state-of-the-art ammonia facilities and global distribution infrastructure to expand our low-carbon ammonia capacity to meet growing demand and further reduce the carbon footprint of our business.”

Tecnimont to begin work on KIMA plant

Following the award of the project to build a nitric acid and ammonium nitrate plant by KIMA, Tecnimont says that it has now received the advance payment and authorisation to start engineering works, while the notice to proceed with full engineering procurement and construction (EPC) activities is expected by the end of June 2024. The EPC contract was awarded to a Tecnimontled consortium for an overall value of $300 million, of which approximately $220 million pertains to Tecnimont.

The plant will replace the older units for ammonium nitrate production at the site, significantly reducing the greenhouse gas emissions thanks to state-of-the-art abatement systems, as well as improving the overall energy efficiency and environmental standards. Once the plant is in operation in 2026, the ammonium nitrate offtake will be used as a fertilizer both by local farmers as well as being exported internationally.

Alessandro Bernini, MAIRE CEO, commented: “We are glad to start this strategic project, which is important for the industrial plans of KIMA as well as for the development of the agricultural activities in the whole region”.

Eurotecnica to license melamine plant

Eurotecnica, part of the Proman family of companies, has been selected by Helwan Fertilizers Company for the implementation of a world scale melamine plant based on the company’s proprietary Euromel® G5 melamine technology. The facility will have a nameplate capacity of 60,000 t/a, and is scheduled to be commissioned by 2027. It will be strategically located in the vicinity of Helwan district, south of Cairo, ensuring proximity to essential resources and markets, facilitating operations and distribution.

Commenting on the collaboration, Guido Canti, Eurotecnica Sales Manager, said: “We are delighted to join forces for this monumental project. Our technology and expertise align perfectly with HFC’s vision for innovation and sustainability. This melamine plant marks a significant step forward for HFC and reaffirms our commitment to providing highly innovative technologies to our customers.”

Euromel technology is the leading and most advanced technology for the production of high-quality melamine used in wood-based products, laminates, moulding compounds and fire-extinguishing foams. It delivers zero pollution with no effluents to be treated and no added chemicals, and now can also be green with electricity from renewable sources.

AUSTRALIA

Topsoe signs contract with Allied Green Ammonia

Topsoe has signed a contract with Allied, a developer of energy infrastructure projects, to deliver its dynamic green ammonia technology for Allied’s project in Gove, Northern Territory, Australia. The ammonia is intended to be exported from Gove to Southeast Asian markets, where demand for clean fuels continues to grow. Production is planned to start in Q4 2028/Q1 2029, targeting a capacity of 2,500 t/d. Using Topsoe’s technology, the CO2 saved in this project is estimated to be around 1.4 million t/a, compared to ammonia produced from conventional (natural gas) routes. Topsoe is also in discussions with Allied to supply an undisclosed quantity of its solid oxide electrolyser cells (SOECs) to produce green hydrogen.

Kim Hedegaard, CEO Power-to-X, at Topsoe, said: “We are excited to embark on this journey with Allied and to support the growing demand for e-fuels production in Australia. Allied’s project is completely in line with our ambition to deliver carbon reduction technologies for reaching net zero. Our dynamic green ammonia solution supports this by enabling the production of e-fuels for energy-intensive industries and long-distance transportation.”

Alfred Benedict, Founder & Managing Director of Allied, said: “We are confident that the geographical location and existing infrastructure in Gove in combination with the most energy efficient hydrogen and green ammonia technology will lead to the lowest levelised cost of green ammonia production in Australia. We are delighted to receive strong endorsement from the local Gumatj Corporation and the Northern Territory government, both of whom eagerly support the development of our green ammonia project in Gove.”

Topsoe’s dynamic ammonia technology adapts the production output of green ammonia in response to fluctuating supply of renewable electricity, enabling the ramping up/down of ammonia production bidirectionally at a rate of at least 3% per minute in response to the fluctuating supply of hydrogen to the ammonia plant. Topsoe says that it also brings a significant reduction in capital expenditure and operational expenditure, since hydrogen storage systems can be reduced substantially, or otherwise eliminated.

Uhde to license urea granulation unit

thyssenkrupp Fertilizer Technology has signed a contract with Saipem to license a urea granulation unit in Karratha, Western Australia. The project in Karratha is being built for Perdaman Chemicals and Fertilisers by a joint venture (50/50) comprising Saipem and Australian company Clough. thyssenkrupp Fertilizer Technology will be responsible for the licensing, process design package and supplying the main equipment for Saipem’s urea project using its proprietary UFT® fluid bed urea granulation technology, which is responsible for more than 70% of the urea granules produced worldwide.

For this project, thyssenkrupp has been contracted to supply two granulators and two exhaust air scrubbers for the urea granulation unit, which will have a total production capacity of 6,200 t/d.

Vikas Rambal, Chairman Perdaman said: “We are pleased to be building Australia’s biggest downstream project, which represents a major investment in the Australian production sector. This state-of-theart plant will contribute to Australia having a safe and reliable source of high-quality urea, thus supporting the farmers and food producers. The decision in favour of thyssenkrupp Fertilizer Technology as the technology supplier and licensor for this urea project not only speaks for the competence of thyssenkrupp Fertilizer Technology, but also for confidence in the ability of the company to supply reliable solutions for the fertilizer industry.”

NORWAY

EU funding for green ammonia project

Australia’s Fortescue has received euro 200 million ($219.3 million) from the European Union for its Holmaneset Project, a flagship green ammonia plant in Norway. The plant aims to capitalise on the Norwegian transmission grid’s surplus renewable energy and ship the resulting green ammonia to domestic and European markets.

Fortescue Energy CEO, Mark Hutchinson, said, “The Holmaneset Project is a great opportunity for Fortescue, Norway and Europe to develop a significant green energy value chain, and its selection for funding by the EU is a recognition of its significance to global decarbonisation efforts.”

The Holmaneset Project has been identified as a priority project by the Fortescue board, who recently approved an early investment decision in the project to see it progress towards front end engineering design (FEED) before being considered for a final investment decision. Fortescue is currently targeting construction to commence in 2025, and operations in 2027, pending final approvals from the board. The EU Innovation Fund Grant will be paid on the completion of specified project milestones, with the first instalment to be paid on financial close.

“The green hydrogen and green ammonia produced near Svelgen has the potential to replace fossil fuels in industries that find it difficult to cut emissions, like long-haul transport, shipping and heavy industry,” Fortescue Norway Country Manager Thor Magnus Rovik said.

Maire Group says that its Tecnimont business unit has been awarded the front end engineering and design contract by Fortescue. Tecnimont’s scope of work entails the design of electrolyser integration, the air separation unit for nitrogen production, and the ammonia production plant, as well as its storage and ship loading facilities. As part of the agreement, Tecnimont will also submit an engineering, procurement and construction proposal for the realisation of the plant. The facility will produce green ammonia through electrolysers that will use renewable hydro-electric power for hydrogen production. Unlike other renewable energy sources, such as wind and solar, hydropower is stable over time, greatly simplifying the configuration and operation of the plant as well as its efficiency. The plant aims to ship the resulting green ammonia to domestic and European markets, contributing to the decarbonization of hard-to-abate industries. These objectives align with both Norwegian and European ambitions of accelerating the green energy market.

Alessandro Bernini, Maire CEO, commented: “We are proud to support Norway with this new sustainable initiative aimed at decarbonizing hard-to-abate industries, in particular the shipping sector, where ammonia is playing a pivotal role. This project is concrete evidence of our strong positioning in the energy transition thanks to our technology-driven value proposition”.

KAZAKHSTAN

New ammonia and urea complex for Aktau

The Kazakh government has said that it is aiming to develop a new ammonia-urea complex at Aktau. Spain’s Técnicas Reunidas is working with state-owned KazAzot and KazMunaiGas on developing the project. In a press statement, Kazakh prime minister Smailov said that the introduction of urea production through the construction of the complex would lead to the production of a unique nitrogen-containing fertilizer suitable for various types of soil, marking a significant step forward in the development of Kazakhstan’s agricultural sector.

IRELAND

Plans for ammonia fuelled power plant

UK-based Centrica plc and Mitsubishi Power Europe have signed a memorandum of understanding to explore the development, construction, and operation of Europe’s first-ever ammonia-fired power generation facility at the Whitegate combined cycle gas turbine (CCGT) power station in Cork. The project is being led by Centrica through its Bord Gáis Energy and Centrica Energy businesses. Bord Gáis Energy’s facility at Whitegate would serve as a global demonstration site for ammonia-fired power generation technology, providing insight into the feasibility and scalability of low carbon ammonia as a green fuel and shaping the future of power generation worldwide, with low carbon ammonia being sourced through Centrica Energy’s global trading network. Following the signing of the MoU, a project team is being established to commence project feasibility assessments. Upon the successful outcome of this assessment, extensive local stakeholder engagement will commence.

Chris O’Shea, Group Chief Executive, Centrica said: “At Centrica we believe that all energy can be green energy and that this can also improve energy security. This is one of the many projects Centrica is working on to demonstrate how the hydrogen economy could work in practice. In this instance, we hope to be able to show how hydrogen could be stored and transported as low carbon ammonia, delivering cleaner energy for customers at the point of use. Centrica Energy continues to be a pioneer in supporting the development of these new international value chains and we’re delighted to have the expertise of our partners in Mitsubishi Power in delivering the project”.

INDIA

Ammonia leak at fertiliser plant

Around 60 people have been hospitalised following a leak from an undersea ammonia pipeline operated by Coromandel International near its Ennore plant in Chennai, Tamil Nadu state. Fishermen and local residents reported bubbles from the pipeline site, followed by difficulty in breathing and a burning sensation in the eyes. The leak took place when Coromandel’s fertiliser manufacturing unit was preparing to receive an ammonia shipment through its 2.5 kilometre-long (1.5 mile) pipeline. The leak was reportedly contained within 20 minutes. In a press statement, Coromandel said: “As part of routine operations, we noticed abnormalities at 23:30 pm on 26th December 2023 in the ammonia unloading subsea pipeline near shoreside, outside the plant premises. Our standard operating procedure activated immediately, and we have isolated the ammonia system facility and brought the situation to normalcy in the shortest time.” The Tamil Nadu government has issued an order mandating that the company carry out appropriate tests after a full repair of its pipelines to completely rule out any scope for further leaks before unloading ammonia from ships.

UNITED ARAB EMIRATES

ADNOC to buy out OCI’s stake in Fertiglobe

The Abu Dhabi National Oil Company (ADNOC) and OCI Global have entered into a sale and purchase agreement for the acquisition by ADNOC of OCI’s entire majority shareholding in Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, and the largest nitrogen fertilizer producer in the Middle East and North Africa, with production facilities in Egypt, Algeria and the UAE. The transaction, which will see ADNOC become the majority shareholder in Fertiglobe, supports the company’s ambitious chemicals strategy and its plans to establish a global growth platform for ammonia, a key lower carbon fuel and hydrogen carrier that is expected to play an important role in the energy transition.

Under the terms of the agreement, ADNOC will purchase OCI’s 50% + 1 share stake in Fertiglobe at a price of AED 3.20 per share, representing a total purchase price of AED 13.28 billion ($3.62 billion). The agreement also incorporates an earn-out mechanism for FY2024 and 2025, linked to commodity pricing and the free cash flow performance of the Fertiglobe business during the relevant period. Following the completion of the transaction, ADNOC’s shareholding in Fertiglobe will increase to 86.2%.

Khaled Salmeen, Executive Director, Downstream, Marketing and Trading Directorate at ADNOC, said: “Working in close partnership with OCI since 2018, we have successfully listed and grown Fertiglobe into the world’s largest seaborne exporter of ammonia and urea fertilizers. Today’s agreement reinforces ADNOC’s long-term commitment to Fertiglobe and our continued focus on delivering growth and maximising value for the company’s shareholders. This important transaction supports ADNOC’s ambitious chemicals growth strategy and accelerates our plan to establish a global growth platform for ammonia and clean ammonia.”

THAILAND

PTT to explore low carbon ammonia

PTT Global Chemical has signed a memorandum of understanding with Mitsubishi Heavy Industries to jointly study the technologies required to develop a large-scale chemical complex that aims to support Thailand’s ambition of achieving carbon neutrality by 2050. The collaboration will consider low carbon fuels such as hydrogen and ammonia, as well as carbon capture and storage technologies over the next four years. It has two main objectives; first to compare the feasibility of using hydrogen and ammonia as fuels for gas turbines, as well as CCS technologies to reduce carbon dioxide emissions from power generators; and second to assess how CCS technologies can best be applied and optimised for the steam methane reforming (SMR) process. MHI will support this through providing carbon capture technologies as well as hydrogen combustion gas turbines and ammonia gas turbines.

Osamu Ono, Managing Director of MHI said: “Low-carbon fuels such as hydrogen, ammonia and CCS technologies have great potential in reducing carbon emissions from existing energy infrastructure. MHI-AP is honoured to partner with GC to explore how we can utilise our technology and expertise to reduce carbon emissions from GC’s existing business assets and support the establishment of an economically viable large-scale carbon neutral petrochemical plant.”

BRAZIL

Petrobras looking to revive UFN III plant

Petrobras has tendered for assessment services for the unfinished construction works on the UFN III ammonia/urea plant in Três Lagoas in Mato Grosso do Sul state, on the Bolivian border. The assessment is aiming to draw up a list of the remaining materials, equipment and services required to complete the plant. Work began on the plant in 2011, being conducted by Sinopec and local firm Galvão Engenharia, but was suspended in 2014 following a dispute with the contractors, at which time the plant was said to be 80% mechanically complete. Since then Petrobras has tried to sell the project, with Russia’s Acron interested at one time. However, since the election of president Luiz Inacio Lula da Silva in October 2022, there has been a change in policy, with the sale of the plant halted and instead plans to complete the unit. UFN III has a planned capacity of 2,200 t/d of ammonia and 3,600 t/d of urea, with natural gas to be supplied across the border from Bolivia.

Petrobras has also signed a contract with Unigel Participacoes SA for production of fertilizers at the Sergipe and Bahia plants on a tolling basis. The two companies signed an agreement in June 2023 to consider collaboration in the areas of fertilizers, green hydrogen and low-carbon projects. It has also revealed plans to restart production of fertilizers at Petrobras subsidiary Araucária Nitrogenados (ANSA), which has been idled since 2020. ANSA has 1,300 t/d of ammonia capacity and 1,900 t/d of urea capacity using asphalt residue from the nearby 200,000 bbl/d Presidente Getulio Vargas refinery (REPAR).