Fertilizer International 520 May-Jun 2024
31 May 2024
Fertilizer Industry News
Fertilizer Industry News
MOROCCO
OCP and Fortescue announce ambitious partnership
OCP Group and Fortescue subsidiary Fortescue Energy have announced a 50:50 joint venture (JV) to supply green hydrogen, ammonia and fertilizers to Morocco, Europe and international markets.
The two companies are planning to rapidly grow Morocco’s renewable energy industry and downstream sectors via four cornerstone projects:
- Establishing large-scale integrated green ammonia and green fertilizer production capacity, based on renewable energy, electrolysis, ammonia generation and fertilizer production.
- Manufacturing green technology and equipment.
- An R&D and Technology Hub, located alongside the Mohammed VI Polytechnic University (UM6P) near Marrakech.
- Capturing corporate venture capital to drive investment in key green technologies.
The overall objective is to generate green hydrogen and ammonia for two main end-uses: firstly, supplying the green energy market and, secondly, manufacturing accessible and affordable carbon-neutral, customised fertilizers for farmers around the world.
Mostafa Terrab, OCP Group’s chairman and CEO, said: “Our strategic partnership with Fortescue is a testimony to our joint commitment to decarbonisation, driving the development of cutting-edge facilities and delivering competitive renewable energy, products and technology. This is a key step towards fulfilling our vision of simultaneously ensuring global food security and combating climate change.”
Dr Andrew Forrest, Fortescue’s executive chair and founder, said: “Together, Fortescue and OCP will build a world-leading and globally competitive platform to accompany Morocco’s journey into a green energy production, manufacturing, and industrial powerhouse. Together, we will be a key originator and green corridor into Europe and to and from the Atlantic basin.”
He added: “Morocco will be a major player in the global energy transition given it is home to some of the world’s most prospective wind and solar resources, two large coastlines, and is in close proximity to Europe and the Americas.”
Mark Hutchinson, Fortescue Energy’s CEO, said: “OCP and Fortescue are fully aligned on their ambitions. We intend to create in Morocco one of the world’s leading integrated renewable energy, manufacturing, and technology enterprises, supplying not only a large and growing domestic market for green products, but also with the potential to supply other countries and continents.”
The venture is subject to customary closing conditions and regulatory approval.
OCP launches sustainable crop inputs subsidiary
OCP Group has set up a new subsidiary company, OCP Nutricrops, to manufacture carbon-free, customised fertilizers.
The new venture, launched in April, will accelerate OCP’s ability to deliver customised crop nutrient products globally and help bring about the transition to more sustainable agricultural systems.
By capitalising on OCP’s leading production and distribution capabilities for phosphate fertilizers, OCP Nutricrops plans to offer products and solutions that:
- Preserve soil health
- Increase crop yields sustainably
- Combat climate change
- Protect the natural environment.
“OCP Nutricrops’ primary mission is to help farmers access the most efficient and sustainable soil health and plant nutrition solutions and the latest application expertise, wherever they are in the world,” OCP said in a statement.
Flexible production systems will be used to manufacture nutrient formulations tailored to the crop, climate and soil. These products will be designed to boost farm productivity and incomes by helping farmers preserve and enhance their soils.
The business will also provide training in precision nutrient management techniques. These will follow ‘4Rs’ principles, ensuring that crops get the right nutrients, at the right rate, in the right place, at the right time, while also minimising costs to the farmer.
Central to OCP Nutricrops and its mission is an environmental commitment to make climate positive agriculture a reality. The company has set itself the goal of delivering 100 percent customised, carbon-free products – this being based on a target to reach carbon neutrality for Scope 3 emissions by 2040. OCP says it will build on its existing international partnerships with governments, researchers, agronomists and distributors to deliver this net zero goal.
Soufiyane El Kassi, the chairman & CEO of OCP Nutricrops, said: “OCP Nutricrops will spearhead a new direction for effective soil health and plant nutrition solutions. Only by using customized soil and plant nutrition solutions can we improve global food security while combatting climate change and protecting the natural environment. OCP Nutricrops is committed to working collaboratively with farmers and all our stakeholders to accelerate the journey towards the fully customized and farmer-centric solutions required to drive a just agricultural transition.”
OCP Nutricrops, as well as having its own in-house team of dedicated agronomists, will draw on the expertise of Morocco’s Mohammed VI Polytechnic University (UM6P) and its international partners to access the latest technological advances and the most accurate agricultural data.
The company is aiming to optimise soil health and help farmers maximise their productivity via advanced soil mapping and by creating customised products, while also protecting the environment and combatting climate change.
UNITED STATES
CF Industries and JERA partner on low-carbon ammonia
CF Industries, the world’s largest ammonia producer, and JERA, Japan’s largest energy company, have signed a joint development agreement (JDA) for a greenfield low-carbon ammonia production plant at CF Industries’ Blue Point Complex in Louisiana.
Under this agreement, the two companies will evaluate a joint venture agreement to build a 1.4 million t/a capacity low-carbon ammonia plant.
JERA is considering a 48 percent ownership stake in the project, as well as an agreement to procure more than 500,000 tonnes of low-carbon ammonia annually. This will be used to meet low-carbon fuel demand in Japan.
JERA and CF Industries previously signed a memorandum of understanding to explore the potential for jointly developing the project. The two partners are now aiming to move to a final investment decision (FID) within the next 12 months with the potential to commence production in 2028.
“We are pleased to expand our relationship with JERA as our companies advance leading-edge decarbonization initiatives that will help JERA and Japan achieve their decarbonization goals,” said Tony Will, the president and CEO of CF Industries Holdings, Inc. “We believe that JERA’s projects, which represent the first meaningful volume of what we believe will be substantial global demand for low-carbon ammonia as an energy source, will demonstrate the significant contribution ammonia can make to meet the decarbonization goals of hard-to-abate industries. We look forward to continuing to work closely with JERA and other stakeholders in Japan as regulatory requirements and government incentives regarding low-carbon ammonia are finalized.”
JERA plans to reduce power plant CO2 emissions by replacing thermal coal at its existing power stations with low-carbon ammonia. The power generator is currently conducting the world’s first commercial-scale demonstration test of ammonia fuel substitution at its Hekinan thermal power station in Japan.
“We are pleased to further advance our partnership with CF Industries,” said Yukio Kani, JERA’s global CEO & chair. “With JERA’s dedication to low carbon fuel development and CF Industries’ expertise as one of the leading ammonia producers, we are confident in making tangible progress towards realizing a low-carbon ammonia value chain, and ultimately ensuring a decarbonized energy supply that is sustainable, affordable, and stable.”
GERMANY
OCI supplies COMPO EXPERT with lower carbon ammonia
Netherlands-headquartered OCI Global has made its first delivery of lower carbon ammonia to COMPO EXPERT for use in NPK production in Germany.
OCI, a leading nitrogen, methanol, and hydrogen producer, has been supplying COMPO EXPERT, a German producer of high-quality specialty fertilizers and biostimulants, with ammonia for more than a decade.
Under a new supply agreement, COMPO EXPERT will initially replace 25 percent of the ‘grey’ ammonia it uses at its Krefeld production plant in Germany this year with lower carbon ‘blue’ ammonia. The company then plans to raise the percentage of OCI-supplied lower carbon ammonia used at Krefeld over the next two years.
The lower carbon ammonia is sourced from OCI’s ammonia production facilities in Texas in the United States and is imported via the company’s ammonia terminal and distribution hub at the Port Of Rotterdam. It is guaranteed to have a carbon footprint 60 percent lower than the industry standard (2.6 kgCO2 e/kgNH3 ).
OCI’s Texan plant has been certified for lower carbon ammonia production and the carbon footprint calculation used has been verified by third party auditors SCS global.
OCI and COMPO EXPERT say that the switch to lower carbon supply sources is a testament to their joint commitment to sustainability and the decarbonisation of ammonia and fertilizer production.
Aviv Bar Tal, Global VP Commercial Nitrogen at OCI Global, said: ‘We’re delighted to be supplying COMPO EXPERT with our lower carbon ammonia and supporting them in their ambitions to lower the carbon footprint of their fertilizers. We have enjoyed a long-term partnership with COMPO EXPERT, further cemented by this agreement, which will see them start to use lower carbon ammonia in their production at Krefeld from this year.”
He added: “OCI’s goal is to increase the volume of lower carbon products we supply to our distribution customers in Europe, gradually replacing conventional products with more sustainable ones. We are significantly increasing our production of lower carbon ammonia, including at our Texas Blue Clean Ammonia facility currently under construction, which has capacity for an additional 1.1 million tonnes per year, and via our terminal in Rotterdam we will support the European decarbonization of existing industries and future energy and bunkering customers.”
Dr Ingo Müller, COMPO EXPERT’s CEO, said: “At COMPO EXPERT, we are dedicated to minimizing the negative impact on the environment. We do not only consider our own production, but also our raw materials. As ammonia is our most important raw material, and has the largest contribution to our carbon footprint, replacing 25% of our demand in 2024 with a lower carbon variety is an important step with a major contribution to our goal. For us, ammonia with a lower carbon footprint is not just a technological advancement; it is a pivotal step towards a more sustainable agriculture.”
CANADA
thyssenkrupp Uhde and Genesis Fertilizers sign pre-FEED contract
thyssenkrupp Uhde has been commissioned to carry a conceptual design study for a reduced-emissions fertilizer plant on behalf of Genesis Fertilizers. The two companies signed a pre-FEED (front-end engineering and design) contract in April.
The study covers the conceptual design for an integrated fertilizer complex at Belle Plaine, Saskatchewan, Canada. The proposed complex will incorporate units designed to produce 1,500 t/d of ammonia, 2,600 t/d of granulated urea/urea ammonium sulphate (UAS), nitric acid and liquid urea ammonium nitrate (UAN), and will also have the ability to produce diesel exhaust fluid (DEF). thyssenkrupp Uhde will provide the engineering know-how for the integration of these units within the production complex. A key focus of the study will be low-carbon production and the minimisation of emissions. The engineering design will therefore consider the potential for using renewable electricity to generate green hydrogen feedstock. The incorporation of thyssenkrupp Uhde’s proven EnviNOx® technology would also eliminate nitrous oxide emission from nitric acid production.
Jason Mann, president and CEO of Genesis Fertilizers, said: “Our primary goal is to ensure the supply of fertilizers to the farmers in Western Canada based on the most advanced technologies available with the lowest possible carbon footprint. We are pleased to be working with a strong industry partner that offers expertise in all the processes and technologies involved from a single source.”
Lucretia Löscher, COO, thyssenkrupp Uhde, said: “This project is a further proof that the transition of the fertilizer industry towards more sustainability has started. Our expertise in clean fertilizer technologies and their integration is essential to support our customers on their journey to protect the climate.”
IVORY COAST
Canada provides $7.3 million of fertilizer finance
Global Affairs Canada has provided a CAD 10 million ($7.3 million) funding boost for the Africa Fertilizer Financing Mechanism (AFFM). The funding is aimed at improving food production and incomes for 800,000 African smallholder farmers.
The extra finance will provide credit guarantees for the fertilizer supply chain in eight African countries It will also be used to provide technical assistance to farmers and encourage sustainable agricultural practices that improve soil health.
The AFFM is administered by the African Development Bank Group (AfDB). It is designed to increase fertilizer use and improve agricultural productivity across the Bank’s member countries by providing innovative kinds of financing.
Global Affairs Canada (GAC) is the Canadian government department responsible for international development. The CAD 10 million in AFFM funding provided by GAC has been specifically earmarked for the ‘Fostering Africa’s agricultural productivity through fertilizer value chain financing’ (FOSTER) programme.
This programme provides access to 80,000 tonnes of organic and inorganic fertilizer, as well as encouraging efficient fertilizer use, and is expected to increase crop yields by 30 percent. It assists 800,000 smallholder farmers in total. Around 40 percent of its beneficiaries are expected to be women while 10 percent are young farmers.
“We thank Global Affairs Canada for its support to advance the Africa Fertilizer Financing Mechanism’s implementation of its Strategic Plan 2022-2028, which focuses on broadening access to finance through capital investments and policy reforms, among other priorities that benefit Africa’s smallholder farmers,” said Dr Beth Dunford, the AfDB’s Vice President for Agriculture, Human and Social Development.
Ahmed Hussen, Canada’s Minister of International Development, said: “Canada is proud to support resilient, climate-smart agriculture and adaptable food production systems in Africa. We remain committed to promoting inclusive, green growth in partnership with the African Development Bank, including through our contribution to the Africa Fertilizer Financing Mechanism.”
BRAZIL
Brazil Potash granted mine installation license
Brazil Potash has received the mine installation license for its Autazes potash project from the Amazon State Environmental Protection Institute (IPAAM).
The granting of the license is a major milestone for the company as it will allow the construction of the project to go ahead, finance permitting. The clearing of this final regulatory hurdle follows several years of environmental, social and technical studies, as well as consultations with local indigenous people.
The Autazes potash project is located in Brazil’s Amazonas state near the town of Autazes, 120 kilometres from the city of Manaus. The 2.2 million t/a capacity project, although located deep in the country’s interior, is situated just eight kilometres from the Madeira River, the Amazon’s biggest tributary (Fertilizer International 517, p51).
If it proceeds, output from the Autazes mine could eventually supply 20 percent of Brazil annual potash consumption of around 12.6 million tonnes. Importantly, the project’s ‘in-market’ position, close to Brazil’s major farming regions, and the potential for river barge transportation, should provide Brazil Potash with a cost and transit time advantage over international suppliers.
The company is forecasting a delivered MOP cost of $166/t (cfr Mato Grosso) for the project with product transit times to domestic farming regions of just 2-3 days.
FINLAND
UPM launches biostimulant product range
UPM Biochemicals entered the crop inputs market in March by launching the UPM Solargo™ range of biostimulants. These are bio-based and offer a sustainable alternative to chemical fertilizers, according to the company.
After successful test marketing in Europe, UPM has begun expanding production of UPM Solargo™ products, which are derived from lignin, at full industrial scale. These are suitable for a broad range of field- and greenhouse-cultivated crops, and boost plant growth by improving the health of the soil microbiome and by increasing water retention.
UPM’s new biostimulant range, while not directly providing plants with nutrients, do increase nutrient absorption, nutrient use efficiency and the stress tolerance of crops. In long term testing, they have been shown to increase crop yield and crop quality, with the potential to significantly reduce demand for traditional NPK fertilizers, according to UPM.
“The launch of UPM Solargo™ marks the successful end of many years of research and development. By bringing this family of novel, bio-based plant stimulants to market, we establish yet another, entirely new category of high value sustainable chemicals and live up to our commitment to pioneer sustainable chemistry” says Christian Hübsch, Director Sales & Marketing Biochemicals at UPM.
