Nitrogen Industry News

Nitrogen Industry News

INDIA

Mangalore and Paradeep announce merger

Indian fertilizer producers Mangalore Chemicals & Fertilizers (MCFL) and Paradeep Phosphates (PPL) have announced that the companies intend to merge, allowing them to consolidate their operations, according to a company statement. The new merged company, to be called PPL, will have a total production capacity of 3.6 million t/a of fertilizers.

MCFL is based in Karnakata in the south of India. It produces urea, DAP, NPS and other speciality fertilizers. PPL has two phosphate plants located in Paradeep and Zuarinagar, with 1.8 million t/a and 1.2 million t/a of production capacity, respectively. Both producers have formed a merger implementation committee to oversee the merger process.

CIL fined $713,000 by Tamil Nadu after Ennore ammonia leak

Indian fertilizer manufacturer Coromandel International Limited (CIL) has been fined INR 5.92 crore ($713,000) by the Tamil Nadu state government following a recent ammonia leak at the group’s Ennore facility. The leak, which occurred 26 December and resulted in the hospitalisation of around 44 local residents, was attributed to a damaged undersea pipeline close to the shore.

The Tamil Nadu Pollution Control Board (TNPCB) noted that CIL should, in future, provide adequate ammonia sensors around the Ennore plant, both in close proximity to where the pipeline crosses a local highway and throughout surrounding villages. CIL has also been asked to carry out onsite and offsite emergency preparedness studies by credible agencies for both ammonium phosphate potash sulphate (APPS) and ammonia storage along with an offshore pipeline facility, local media said.

Yara to receive low carbon ammonia from Acme

Norway-based Yara has signed a binding agreement with Acme Cleantech subsidiary GHC SAOC for long-term offtake of low-emissions ammonia from Acme in India. The long-term offtake agreement between Yara and Acme covers the supply of 100 000 t/a ammonia. In the base case, the ammonia will be supplied by Acme from Phase-1 of its Oman project, with an expected start date in 2027. The supply will comply with the EU RFBNO and Renewable Energy Directive requirements. In July, ACME raised $488 million in funding to commence its green hydrogen and ammonia project in Duqm, Oman.

The companies had previously signed a non-binding offtake term sheet. The current deal concludes 18 months of negotiations, during which the regulatory framework and certification regime have evolved significantly, creating a suitable environment for such long-term contracts, Yara said.

“Yara Clean Ammonia is a frontrunner in enabling the hydrogen economy across the shipping, food, power, and industrial sectors, said Magnus Ankarstrand, president of Yara Clean Ammonia. “The renewable ammonia from Oman will be part of our scalable distribution system, developing a reliable, safe, and cost-efficient supply chain for low emission ammonia across different market segments. This agreement demonstrates the power of partnerships and collaboration to develop value chains that reduce emissions.”

Deepak Fertilisers inks 15-year LNG supply contract with Equinor

India’s Deepak Fertilisers and Norwegian-headquartered energy firm Equinor have inked a 15-year LNG supply contract with deliveries to India to begin in 2026. This portfolio will be the base of supply to Deepak, which will use the gas mainly as feedstock for production of ammonia in its newly commissioned plant for manufacturing fertilizers and petrochemicals. The agreement covers supply of around 650,000 t/a LNG for 15 years starting from 2026, Equinor said.

“We are very happy to enter into this long-term agreement with Equinor for supply of LNG. The agreement will provide reliable supplies of feedstock which will further strengthen Deepak Fertilisers’ value-chain from gas to ammonia, the key ingredient in fertilizers,” Deepak Chairman Sailesh Mehta said. “The agreement will help us absorb global volatility as well as enhance overall margins. We also look forward to exploring with Equinor further collaboration on feedstock and carbon footprint reduction initiatives,” Mehta added.

CIL to invest in ammonium nitrate plant

Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL) have signed a joint venture agreement to set up an ammonium nitrate plant using surface coal gasification. The plant will be located in Odisha’s Lakhanpur area, using coal supplied by CIL subsidiary Mahanadi Coalfields Ltd, and is planned to produce 2000 t/d (660,000 t/a) of ammonium nitrate according to a statement by India’s coal ministry. Full production will require 1.3 million t/a of coal. BHEL would supply its own pressurised fluidized bed gasification technology to convert the coal into syngas feed for the ammonia plant.

GERMANY

Mabanaft completes study on ammonia import terminal

German-headquartered energy firm Mabanaft has successfully completed a so-called scoping meeting ahead of the approval procedure for the construction of its planned ammonia import terminal in the Port of Hamburg, the company said in a press statement.

In addition to Mabanaft, authority representatives, directly affected neighbours, environmental associations and other experts were invited to the meeting, which lasted several hours, the purpose of which was to determine the scope of the environmental impact assessment, the statement said.

In July 2023, Mabanaft went through a voluntary hearing for the construction of an ammonia import terminal in the Port of Hamburg, in which the company outlined the necessary construction measures. These included the construction of a liquid ammonia storage tank at its Blumensand Tank Terminal in the Port of Hamburg, operated by Mabanaft subsidiary Oiltanking Deutschland.

In November 2022, Mabanaft and its anchor customer Air Products announced the construction of a large-scale terminal for green energy. While Mabanaft plans to build, own and operate the facilities required for the handling of ammonia, Air Products plans to build, own and operate the facilities required for the production and handling of hydrogen for which green ammonia will be the feedstock.

“Our planned ammonia import terminal on our land in the Port of Hamburg has the potential to bring significant quantities of energy products to Hamburg that can support the energy transition,” Director of New Energy at Mabanaft Philipp Kroepels said.

“A voluntary environmental impact assessment along the way is very important to us. We are now getting ready to officially initiate the permit process,” Kroepels added.

In January 2023, Mabanaft signed a memorandum of understanding (MoU) with Hapag-Lloyd to evaluate options for the supply of ammonia as a bunker fuel to in and around the Port of Hamburg, Germany and the Port of Houston, Texas, USA.

PORTUGAL

Green ammonia and hydrogen plant

Maire Group says that Tecnimont has been awarded a FEED contract by MadoquaPower2X to develop an integrated green hydrogen and green ammonia plant located in the industrial zone of Sines, Portugal. MadoquaPower2x is a consortium comprised of Madoqua Renewables, Power2X and Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund.

The project involves the production of green hydrogen using alkaline-water electrolyser technology and production of green ammonia through the Haber-Bosch process. Green ammonia will be transported by pipeline to the Port of Sines and loaded for export and/or used as maritime fuel.

Tecnimont’s scope of work entails the design of the electrolysers’ integration, an air separation unit for nitrogen production, and the ammonia production plant, as well as storage and ship loading facilities. As part of the agreement, Tecnimont will also submit an engineering, procurement and construction proposal for the construction activities of the plant. The final notice to proceed is expected by 22 March 2024.

This award follows a pre-FEED carried out by NextChem Tech, Maire’s sustainable technology solutions subsidiary. As such, Tecnimont will provide its EPC expertise leveraging on NextChem Tech’s technological competences for hydrogen production and storage.

MadoquaPower2X will use renewable energy generated by solar and wind assets under development in Portugal and up to 500 MW of electrolysis capacity to produce up to 1,200 t/d of green ammonia. It will be the first facility in Sines, the largest industrial and logistic hub in the Iberian peninsula, to produce clean energy at an industrial scale and with the highest environmental and safety standards. The project is geared towards the set-up of an export energy carrier value chain between the Port of Sines (Portugal) and Northwestern European Hub.

Alessandro Bernini, Maire CEO, commented: “This award shows the Group’s strength in the green hydrogen and ammonia production segment, which helps supporting the transition to a clean energy system”.

EGYPT

Stamicarbon to supply urea melt and granulation plant

Maire Group says that NextChem, via its nitrogen technology licensor Stamicarbon, has been awarded a licensing and equipment supply contract for a urea melt and granulation plant 100 km southeast of Cairo for El-Nasr Company for Intermediate Chemicals (NCIC). The plant is expected to have a production capacity of 1,050 t/d of urea. The technology selected by NCIC plays a pivotal role for the urea melt and granulation plant, especially in terms of process optimisation, operational safety, enhancing yield and minimizing energy consumption. NCIC is one of the key players in the chemical and fertilizer industry in Egypt, embracing cutting-edge nitrogen technologies able to ensure superior product quality.

Alessandro Bernini, Maire CEO, commented: “This award is evidence of the reliability of our value proposition in offering nitrogen-based technology solutions worldwide. We are proud to contribute to NCIC’s industrial development plans in the fertilizer sector, thus consolidating our market leadership in licensing urea technology in Africa.”

Delta Fertilizers, thyssenkrupp Uhde to restart Egypt ammonia facility

Egypt’s Delta Company for Fertilizer and Chemical Industries (Delta Fertilizers) has signed a contract with the Egyptian subsidiary of German engineering firm thyssenkrupp Uhde to revamp an existing ammonia plant complex located in Dakahlia, Talkha, Egypt, the latter said in a 22 February press statement.

Responsible for the front-end-engineering-design (FEED), thyssenkrupp Uhde will provide engineering solutions for the revamp of the ammonia plant as well as the ammonia offsite and central utility units, the group said. The company will also supply its state-of-the-art technology for the production of ammonia and urea. Together with the FEED solution, this technology will enable the plant to be re-commissioned after a three-year shutdown, while at the same time increasing the plant’s capacity from 1,275 t/day ammonia to 1,400 t/ day, the statement continued.

“We are very proud to have been selected as the partner to execute this project and enable the re-commissioning of the ammonia plant together with a capacity increase. Our proven ammonia technology and our innovative engineering solutions guarantee the production of high-quality ammonia and urea worldwide,” thyssenkrupp Uhde Egypt CEO Thomas Kufahl said.

JAPAN

Heraeus invests in Japanese ammonia startup

Heraeus has invested in Japanese startup Tsubame BHB, which has been developing a new environmentally friendly and efficient technology for decentralised ammonia production. Tsubame BHB, based in Yokohama, was founded in April 2017 with the goal of implementing the world’s first on-site ammonia synthesis system. Heraeus says that the Tsubame technology complements the company’s offering of sustainable, precious metal based technologies. The innovative process is based on an electride catalyst and enables cost-effective ammonia production. It meets previously unmet needs in the ammonia market for local or “close-to-use” ammonia production, saving transportation cost and avoiding the risk of supply disruptions. The process is also suited to produce renewable ammonia from low carbon hydrogen and therefore supports the decarbonisation of the ammonia value chain.

“Japan is a market where innovation is born – especially in the area of advanced materials. As a globally leading material technology company, Heraeus sees great potential in a stronger collaboration with Japanese companies, universities, and research institutes. Our investment in Tsubame BHB is a great example how Japanese and German companies can profit and grow together in future markets.” added Hideto Yamauchi, Representative Director, President of Heraeus K.K. in Japan.

IRAN

Iran to boost ammonia production capacity by 450,000 t

The head of Iran’s National Petrochemical Company (NPC) has stated that following the implementation of the Persian Gulf Star Oil Company (PGSOC)’s ammonia plant, 450,000 t will be added to the country’s ammonia production capacity, the Tehran Times reported 23 February.

The necessary permits have been issued for the establishment of the PGSOC plant, the implementation of which is set to also prevent the wastage of more than 95,000 t hydrogen, NPC Head Morteza Shahmirzaei was cited as saying.

“The total gas consumption of petrochemical complexes is less than 8% of the country’s total gas consumption, and this gas should be converted into added value and final products should be produced to reduce crude sales and complete the value chain,” Shahmirzaei said.

CHINA

Stamicarbon to supply low energy urea melt plant

Jiangsu Huachang Chemical Company has awarded Stamicarbon licensing and equipment supply contracts for a urea melt plant in China. The plant, located in Zhangjiagang, Jiangsu province, will have a capacity of 1860 t/d and use Stamicarbon’s Ultra-Low Energy design with a highly efficient pool reactor concept. This urea melt plant will serve as a replacement for an outdated facility of similar capacity and will use the existing prilling unit. Stamicarbon will provide the license, proprietary equipment, including high-pressure equipment made of super duplex stainless steel, and associated professional services.

Stamicarbon’s Ultra-Low Energy design, uses high-pressure steam three times instead of two, making the process more energy efficient than the conventional CO2 stripping. This heat recovery scheme results in a 35% reduction in steam consumption and a 16% decrease in cooling water use.

“At Stamicarbon, we are committed to pioneering sustainable solutions, and Ultra-Low Energy design stands out as a testament to our dedication. We believe that this project marks a significant milestone in Jiangsu Huachang ‘s journey towards a more sustainable and efficient future. This project marks the ninth worldwide implementation of our groundbreaking technology, a testament to its global recognition as the industry’s benchmark for energy consumption and efficiency,” said Pejman Djavdan, Stamicarbon CEO.

SOUTH KOREA

Topsoe’s technology selected for new hydrogen project

Topsoe has signed an engineering agreement with South Korean industrial supplier of hydrogen Approtium to convert low-carbon ammonia into hydrogen using its H2RETAKE technology. Topsoe says that technology will be used in Approtium’s project in Ulsan, South Korea, where the latter plans to build an ammonia cracking plant to produce 75,000 t/a of low-carbon hydrogen. Production will start in 2027.

Elena Scaltritti, Chief Commercial Officer at Topsoe, commented: “We are excited to embark on this project with Approtium, showcasing not only the potential of our innovative technology but also the strengths of ammonia as a key energy carrier. Greenhouse gas emissions need to be reduced drastically on a global scale and through this project, Topsoe delivers a strong contribution to support South Korea’s decarbonization targets.”

James Kim, CEO of Approtium, stated: “Our ultimate goal has been to provide clean hydrogen to clients and contribute to accelerate carbon neutrality in Korea. This collaboration with Topsoe marks a significant milestone in our relentless pursuit of that goal and signifies our commitment to providing value to both our clients and society.”

Wärtsilä to deliver ammonia fuel system for two MGCs

Finland’s Wärtsilä Gas Solutions, part of technology group Wärtsilä, will deliver a fuel supply system for two new gas carriers that will operate with ammonia fuel. The ships will be built at the Hyundai Mipo Dockyards (HMD) in South Korea for shipowner Exmar LPG, a joint venture between Exmar, a multi-disciplinary maritime and offshore solutions provider, and Seapeak, one of the largest independent owner-operators of liquefied natural gas vessels. The Exmar Midsize Gas Carriers (MGCs) will be the first ever oceangoing vessels to be propelled by dual-fuel engines capable of operating with ammonia, with these engines provided by marine technology developer Winterthur Gas & Diesel Ltd. (WinGD).

The full scope of Wärtsilä’s supply includes the Liquid Ammonia Fuel Supply System along with process engineering and dynamic simulation. The system is skid mounted with low- and high-pressure fuel pumps, controls for fuel pressure and temperature, and heat exchangers. Delivery to the yard is scheduled for 2025, the company says.

“When operating with ammonia fuel, the carbon dioxide emissions will be reduced with about 90%. This is fully in line with Wärtsilä’s strategy for enabling decarbonised shipping operations, and is an endorsement of our capabilities to deliver future-proof systems capable of handling a new generation of marine fuels,” Head of Marine sales at Wärtsilä Gas Solutions Stein Thoresen said.

RUSSIA

Ammoni JSC to launch UAN production in March

Ammoni JSC is set to launch UAN production at its newly constructed nitrogen facility in Tatarstan in March 2024, TASS reported 30 January, citing company Deputy General Director Yuri Razbezhkin. The project is expected to reach design capacity of 150,000 t/a in 2024, with plans to expand production to as high as 300,000 t/a in the future, Razbezhkin said.

Production at the new complex had originally been slated to begin in Autumn 2023, though delays in procuring the relevant equipment have pushed the project start date back to March this year. Russia is largely unable to directly purchase technical equipment from countries it deems ‘unfriendly’ following the full-scale invasion of Ukraine in February 2022.

MALAYSIA

Petronas, Sarawak government weighing up blue ammonia JV

Malaysia’s Petronas and the government of the Malaysian state of Sarawak are reportedly mulling a joint venture (JV) for a large-scale blue ammonia plant, according to local press reports. Further details, including the planned production capacity of the plant, are unclear, though sources have estimated that any investment could amount to around $1 billion. A preliminary agreement to facilitate discussions and to assess the feasibility of the project will be signed before the end of this month.

Sarawak is already developing a low-carbon project in the state. In January 2022, South Korea’s Samsung Engineering, Posco and Lotte Chemical signed a memorandum of understanding (MoU) with SEDC Energy, a subsidiary of the Sarawak Economic Development Corporation, to develop a green hydrogen and ammonia site at Bintulu.

UNITED STATES

CF and Mitsui to decide on blue ammonia project in H2

CF Industries and Mitsui completed a frontend engineering and design (FEED) study in the fourth quarter 2023 on their greenfield blue ammonia facility CF’s Blue Point Complex in Louisiana, CF announced in its Q4 results. The plan is for a steam methane reforming (SMR) ammonia facility with carbon capture and sequestration (CCS) technologies.

The FEED study estimates the cost of the project to be in the range of $3 billion, with approximately $2.5 billion allocated to the ammonia facility and CCS technologies and approximately $500 million allocated to scalable common infrastructure for the site, such as ammonia storage and vessel loading docks. CF and Mitsui are progressing two additional FEED studies focused on technologies with the potential to further reduce the carbon intensity of the proposed plant. These include a previously announced study evaluating autothermal reforming (ATR) ammonia production technology and a recently added FEED study assessing the cost and viability of adding flue gas capture to an SMR ammonia facility. Both FEED studies are expected to be completed in the second half of 2024.

The companies also expect greater clarity later in 2024 regarding demand for low-carbon ammonia, including the ammonia carbon intensity requirements of offtake partners as well as government incentives and regulatory developments in partners’ local jurisdictions. They are thus targeting the 2024 H2 for a final investment decision on the proposed plant.

Mitsui and CF first announced 3 May they had secured an exclusive right to acquire a site in the US Gulf Coast region suitable to construct an export-oriented blue ammonia production facility. CF will have 52% and Mitsui will have 48% ownership of the intended joint venture in which the parties will have proportional capital investment and economic returns. Mitsui will lead the marketing and distribution for the blue ammonia into Asia. The announcement came after the companies in August 2021 signed a memorandum of understanding (MoU) to jointly explore the development of blue ammonia projects in the US.

Clean ammonia project in Louisiana

Idemitsu Kosan has agreed with Mitsubishi and Proman to participate in the development of a proposed clean ammonia project in Lake Charles, Louisiana. The project aims to produce approximately 1.2 million t/a of low carbon clean ammonia by 2030, and is currently in the front-end engineering design (FEED) process. According to Idemitsu, it will use Topsoe’s SynCOR technology, and Mitsubishi Heavy Inudstry’s Advanced KM CDR Process, developed collaboration with Kansai Electric Power. Ammonia produced at the facility will be primarily exported to Japan as a clean fuel.