Nitrogen Industry News

Nitrogen Industry News

UNITED STATES

Hanwha and INEOS looking at blue ammonia plant

Hanwha Corporation and INEOS Nitriles have announced their intention to collaborate in a study for a new low-carbon ammonia facility with carbon sequestration in the USA, with a capacity of more than 1 million tonnes per annum. The location of the plant is yet to be determined. The two companies have agreed heads of terms, under which Hanwha and INEOS will jointly explore the feasibility of a facility to meet the growing global demand for ammonia with low-carbon emissions. A final investment decision is planned for 2026 with planned commercial operation in 2030.

Hans Casier, CEO of INEOS Nitriles said: “This project is a potentially important contributor to INEOS Nitriles’ carbon emission reduction targets in 2030 and its net zero ambitions by 2050. This project would be a significant step towards a leadership position in low-carbon Acrylonitrile supply of which ammonia with low-carbon emissions is a key raw material. INEOS positions itself to find solutions to the challenges the world is facing and is looking forward to achieving a net zero economy whilst both continuing to deliver products that are essential to society and remaining competitive.”

Kiwon Yang, CEO of Hanwha Corporation added: “Our collaboration with INEOS Nitriles is aimed at strengthening our strategic foothold in the global ammonia market and addressing the growing worldwide demand for clean ammonia solutions. The production of industrial materials using clean ammonia aligns well with our commitment to key sustainability principles. This technological advancement will be a pivotal turning point in realizing Hanwha’s vision for a sustainable future.”

LSB to supply low carbon AN solutions

LSB Industries says that it has entered into an agreement to supply up to 150,000 st/a of low carbon ammonium nitrate solution to Freeport Minerals Corporation. LSB will supply the ANS from its El Dorado, Arkansas facility for five years, beginning on January 1, 2025, with a phasing in of the low carbon contracted volume.

LSB’s low carbon product offering stems from the carbon capture and sequestration project that it currently has under way with its partner, Lapis Energy, who will capture and permanently sequester more than 450,000 t/a of CO 2 produced from El Dorado’s ammonia production. The carbon sequestration is expected to result in more than 375,000 t/a of low carbon ammonia that LSB can sell or upgrade and sell to customers in the form of other low carbon nitrogen products, such as AN solutions. The project is expected to commence operations in 2026, pending approval by the Environmental Protection Agency of LSB and Lapis’ Class VI permit application, which the companies expect to receive in the second half of 2025.

“This important agreement validates our belief that our industrial and mining customers will identify the low carbon nitrogen products that we plan to produce as an important part of their decarbonisation journeys and value them accordingly,” said Mark Behrman, LSB’s President and CEO. “We view this contract with Freeport as a major step towards attaining our vision of becoming a leader in the global energy transition and look forward to partnering with them as a strategic supplier as they advance toward their net zero aspiration.”

INDIA

Coromandel to restart ammonia pipeline

The Southern Bench of the National Green Tribunal has ruled that Coromandel International Ltd can restart its offshore ammonia pipeline after obtaining a no-objection certificate from the Directorate of Industrial Safety and Health, and subject to approvals from the Tamil Nadu Maritime Board and Indian Register of Shipping. The company shut down its ammonia offshore pipeline activity, based on TNPCB’s notice, after a gas leak on December 26th left Ennore residents with breathing difficulties, eye irritation, and vomiting, and led to hospitalisation of at least 54 people.

RUSSIA

Taman ammonia terminal begins commissioning

Commissioning work has reportedly begun at the TogliattiAzot terminal for transshipment of ammonia and fertilizers at Taman, according to a press statement by General Director Anatoly Shablinsky. TogliattiAzot has been building a terminal at the port of Taman since the early 2000s. The project was put on pause for several years, with construction resuming in 2015, but stalling again due to the unsettled issue of the land lease with the Krasnodar Territory and legal disputes regarding the recognition of ownership rights to real estate.

The construction project was revived in the summer of 2022 following the shutdown of the Yuzhnyy ammonia terminal in Ukraine. The Arbitration Court of the Krasnodar Territory ruled it illegal for regional authorities to refuse to transfer land plots at the port of Taman, where the terminal is being built, to federal ownership (facilities involved in the transshipment of explosive substances can only be built on federal lands). The head of the region and the Togliattiazot senior management subsequently signed a cooperation agreement.

Togliattiazot had previously indicated that the first stage of the ammonia terminal in Taman, with a capacity of up to 2 million t/a of ammonia, was planned for launch in December 2023. The second stage of construction is planned for 2024-2025, and will increase capacity to 3.5 million t/a of ammonia and 1.5 million t/a of urea. Commissioning of the export terminal will allow TogliattiAzot to once again reach full production capacity, which was reduced due to the shutdown of the Togliatti-Odessa ammonia pipeline in 2022. TogliattiAzot operates more than 3 million t/a of ammonia and 960,000 t/a of urea capacity.

QATAR

Supply agreement with Koch Fertilizer

​QatarEnergy has signed a long-term urea supply agreement with Koch Fertilizer LLC. The 15-year supply agreement, starting in July 2024, stipulates the supply of up to 0.74 million t/a of urea to Koch Fertilizer. Under this agreement, urea of Qatari origin will be supplied into the agricultural sectors of the US and other international markets.

Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, and also President and CEO of QatarEnergy, said: “We are delighted to announce the signing of this long-term sales agreement with one of our valued partners, solidifying our longstanding relationship with Koch Fertilizer. This agreement marks a significant step in advancing synergy and cooperation and fostering mutual growth and value for both sides.”

Mark Luetters, Senior Vice President of Koch Industries and President of Koch Fertilizer said: “QatarEnergy has been a cherished partner of Koch Fertilizer for more than a decade and we are thrilled to cement our mutually beneficial relationship for years to come. The agreement aligns with Koch Fertilizer’s long-term vision and presents an exciting opportunity to better serve our customers.”

This agreement highlights QatarEnergy’s strategy in establishing longstanding relationships with reliable leaders of the Fertilizers industry and its commitment to support the global agricultural sector.

Koch Fertilizer LLC is a subsidiary of Koch Industries with fertilizer plants in North America, Trinidad and Tobago, and Morocco; and distribution facilities and terminals located in the U.S., Canada, Mexico, Brazil, Australia, and other international markets.

HUNGARY

Nitrogenmuvek debt rating lowered

S&P has lowered its rating of Hungarian fertilizer producer Nitrogenmuvek’s debt from CCC+ to CCC. In a statement, S&P said that “the negative outlook indicates that Nitrogenmuvek faces mounting refinancing risks; in our view, the likelihood of a debt restructuring is rising and we could lower our ratings further if the company makes no progress on its refinancing plans.” Nitrogenmuvek has yet to refinance its e200 million senior unsecured notes, due May 14, 2025, and S&P says it is concerned that “options for refinancing the notes could be constrained by the difficult economy” and “uncertainty regarding the progress of Nitrogenmuvek’s litigation against Hungary’s emission trading system (ETS) decree and the related CO2 quota tax.”

In response, the company says that it is “working on a number of options and structures to ensure a successful refinancing strategy, which we target at the time when we have good level of visibility in respect to the industry recovery and tax issue, which is expected in upcoming months.” Zoltan Bige, chief strategy officer and son of owner added that the company has “an attractive level for funding liquidity” through its bond, and that Nitrogenmuvek is now focused on finding optimal solutions for short-term needs while handling challenges including local tax, volatile markets and industry under-performance. It also aims to support a long-term funding strategy, which includes further efficiency improvements and preparing for decarbonisation.

CHINA

China to suspend urea exports?

Ten key nitrogen fertilizer manufacturers, including Jinkong Equipment, Henan XLX, Hebei Dongguang, Linggu Chemical, Yuntianhua, Hualu Hengsheng, Hebei Zhengyuan, Shandong Ruixing, and Hubei Yihua, have jointly agreed an initiative to fully guarantee the supply of domestic spring ploughing nitrogen fertilizer and stabilise the sales price of nitrogen fertilizer in China. The companies have agreed to prioritise supplying the domestic market. Export orders will be suspended and the domestic market will be fully supplied. Furthermore, the companies have agreed that the ex-factory price of nitrogen fertilizer should not be allowed to rise higher than the level as of May 21st 2024.

SENEGAL

Feasibility study on new urea plant

Petrosen Trading & Services has completed a feasibility study into the construction of a 100,000 t/a ammonia-urea plant in Senegal. Commissioning is tentatively scheduled for 2029, according to state oil and gas company Société des Petroles du Senegal. The project would be run by the Senegal Fertilizer Company (SEFCO), and would aim to monetise gas discovered off the coast of Senegal in order to achieve self-sufficiency in urea and achieved higher value for the country’s phosphate production via the formulation of NPK fertilizer blends. The plant would also supply fertilizer markets in the West African region, including Mali, Burkina Faso, Ivory Coast, and Ghana, as well as potentially Europe, the United States and Brazil, two of the largest importers of urea in the world. There has also been a parallel study focusing on the carbon capture potential of this plant, which assesses that it is possible to capture nearly 17 million tonnes of CO2 over the 30 years of operation of the plant. The CO2 captured could be reused in food preservation, the agri-food industry, or even construction, according to Société des Petroles du Sénégal.

GERMANY

BASF appoints seller for ammonia and methanol assets

BASF and International Process Plants (IPP), a global leader in the acquisition and sale of process plants and equipment, have entered an agreement to sell the ammonia, methanol and melamine plants at BASF’s Verbund site in Ludwigshafen, Germany. The plants have become available as BASF implements structural measures at its Ludwigshafen site to ensure competitiveness in a changing European market environment, as announced in February 2023. BASF says that it will continue to produce ammonia and methanol in other assets at Ludwigshafen site. The two companies have agreed not to disclose financial details of the deal.

The agreement includes integrated production assets for ammonia (380,000 t/a), methanol (165,000 t/a) and melamine (51,000 t/a). IPP is offering these production units for relocation and sale to qualified buyers with projects for such assets who are looking for opportunities for lower capex and shorter project execution timelines.

“We are excited to add these world-class ammonia, methanol, and melamine plants to our portfolio of excellent plants for relocation,” said Ronald Gale, President of International Process Plants. “These facilities represent a significant opportunity for companies seeking to expand their production capacity with existing assets that operate at a high level of energy and raw material efficiency. IPP is committed to finding a new home for these assets in a location with sufficient and economic gas supply or as part of a green ammonia or methanol project where they can continue to operate efficiently and productively.”

“BASF is partnering with IPP on the divestment of the idled ammonia, methanol, and melamine plants to ensure that these well-maintained assets are sustained for chemical production. The units were in operation through 2023 and only shut down in the context of the structural adaptation of our production setup at the Ludwigshafen site. The sale represents a more sustainable and economic approach to the deployment of these production units, and with a net benefit to the global process industry,” said Ruediger von Watzdorf, Senior Vice President Technology, BASF Monomers division.

BASF expands biomass-based portfolio

In addition to the above sales, BASF is also now offering ‘biomass balanced’ (BMB) ammonia and derivatives with a significantly lower product carbon footprint compared to conventional ammonia derivatives. Certified renewable raw materials replace fossil resources at the start of the production process, and renewable electricity is also used to further reduce production-related emissions. The range of products includes ammonia anhydrous BMBcert™ , ammonia solution 24.5% BMBcert™ , urea prills BMBcert™ , 40% urea solution BMBcert™ , and 45% urea solution BMBcert™ . The mass balanced products are certified according to ISCC (International Sustainability and Carbon Certification) PLUS standards. These measures lower the product carbon footprint of these products by at least 80% versus the average PCF of conventional fossil ammonia derivatives without compromising on quality and performance. The certified products enable customers to reduce their Scope 3 emissions as well as the product carbon footprint of their products.

Ammonia cracking project

Heraeus Precious Metals has launched a research project called AmmoCatCoat, leading a consortium with five project partners to develop technologies for efficient and sustainable hydrogen production from ammonia. The project, with a total volume of around two million euros, is funded by the German Federal Ministry of Education and Research (BMBF) and will have a duration of three years. The other project partners are Fraunhofer ISE, the Leibniz Institute for Agricultural Engineering and Bioeconomy (ATB), the Centre for Transmission Electron Microscopy (CAU), PYREG GmbH, and Purem by Eberspächer, combining expertise in catalysis, biomass conversion, material characterisation, and surface treatment. The project aims for the practical demonstration of operation under real-technical conditions at the pilot plant scale.

“We are proud to lead such a strong consortium and together make a directional contribution to realizing the hydrogen economy,” says Dr.-Ing. Konrad Krois, project manager at Heraeus Precious Metals, “I am convinced that with AmmoCatCoat we will succeed in providing a more efficient and sustainable method for ammonia cracking. The energy transition needs solutions that are material-efficient and competitive in operation.”

Precious metal catalysts based on ruthenium are exceptionally suitable for ammonia cracking, but Heraeus says that, in order to make the process as sustainable, efficient, and cost-effective as possible, the materials used need to allow operation at low temperatures and have high long-term stability, as well as be used as sparingly as possible, and ideally are sourced from renewable resources. In the project, a highly catalytically active ruthenium layer is applied to an electrically heatable catalyst carrier system, which ensures direct and even heat distribution. The active layer consists of nanoparticles that are finely distributed on a specially tailored carbon material. This enables the ruthenium to be used for extended periods of time before the precious metal is recycled at the end of its useful life, allowing further energy savings. The goal is to achieve maximum ammonia conversion at temperatures below 500°C. This results in substantial energy savings in operation.

OMAN

Consortium to develop green hydrogen project in Oman

Actis and Fortescue have been awarded exclusive rights to develop major green hydrogen project in Oman. At a signing ceremony in Muscat, Hydrogen Oman SPC (Hydrom), an independent entity founded by the Omani government to orchestrate and deliver the nation’s green hydrogen strategy, announced the consortium was a winning bidder in the second round of a green hydrogen tender process.

The project, which is currently in feasibility stage, is expected to involve construction of up to 4.5 GW of wind and solar renewable energy resources that will power electrolysers with the potential to produce up to 200,000 t/a of green hydrogen per year. Under the current plan, this is expected to be sold to local industrial offtakers as well as processed into derivatives such as green ammonia for export via the existing port of Salalah.

Speaking at the signing ceremony, Salim bin Nasser Al Aufi, Oman’s Minister of Energy and Minerals and Chairman of Hydrom, said: “Oman is strategically located between two key green hydrogen demand centres in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities, have enabled us to leverage our first mover advantage in the global hydrogen industry. The availability of renewable natural resources in Oman coupled with the country’s favourable geopolitical positioning, investor-friendly policies and progressive energy transition strategies make it one of the most suitable countries for green hydrogen production. I would like to congratulate Actis and Fortescue on their awarding and look forward to working together to realise our collective vision.”

CHINA

Stamicarbon to revamp urea plant

Maire Group’s NextChem Sustainable Technology Solutions division, via its subsidiary Stamicarbon, has been selected by Qinghai Yuntianhua International Fertilizer Co., Ltd. to provide the process design package for the revamping of a dual-line urea plant in Qinghai Province, China, with a capacity of over 1,200 t/d each. The proprietary medium pressure flash design, part of the EVOLVE Energy™ series, significantly lowers steam use and optimises the use of feedstock, reducing the overall energy consumption of the plant by over 25%. In particular, Stamicarbon says that the addition of a medium-pressure recirculation section enables the maximisation of energy savings without any modification to the existing high-pressure equipment. This results in a significant decrease of the carbon footprint while generating savings in maintenance and operating expenses.

FRANCE

Low carbon nitrogen plant announcement

FertigHy says that it will build its first low carbon fertilizer facility France’s norther Hauts-de-France region. The e1.3 billion CAPEX investment build is expected to be in operation by 2030 and will produce 500,000 t/a of low-carbon fertilisers. The production process will use renewable and low-carbon electricity to produce hydrogen for ammonia production. FertigHy is a consortium of founding investors EIT InnoEnergy, RIC Energy, Maire Group, Siemens Financial Services, InVivo, and Heineken, and plans to build, own and operate several large-scale fertiliser factories across Europe producing cost-competitive, low-carbon fertilisers for European farmers – starting in France.

José Antonio de las Heras, CEO of FertigHy, said: “A long-standing agricultural base and strong governmental support were principale triggers for FertigHy to choose Northern France to develop its first fertiliser manufacturing plant. Running on renewable and low-carbon electricity, this plant is a decisive step towards the production of European-made fertilisers and towards reducing imports of mineral nitrogen fertilisers. FertigHy will therefore contribute to the decarbonisation of French agriculture, where fertilisers production and use currently account for 30% of the sector’s total greenhouse gas emissions.”

AUSTRALIA

Mubadala to invest in Perdaman urea project

Mubadala Investment Company, the Abu Dhabi sovereign investor, has announced its decision to invest in Perdaman’s A$6.4 billion Western Australia Urea project at Karratha in Western Australia. The new investment, which is in line with the wealth fund’s target of doubling its exposure in Asia by 2030, represents the largest investment ever made in the Australian fertiliser industry, with the facility expected to produce up to than 2.3 million t/a of urea. It will incorporate solar energy and green hydrogen to replace coal-based urea imports, as well as ensure optimised energy efficiency and low emissions. Around half of production will be exported to Asia, Brazil and the US. The value of the investment was not disclosed. The project is already being funded by US-based infrastructure investment fund Global Infrastructure Partners (GIP), who have committed more than A$2.1 billion (US$ 1.4 billion) last year.

Dyno Nobel extends contract with BHP Mitsubishi Alliance

Dyno Nobel’s products and technology solutions division has secured a long-term contract extension with BHP Mitsubishi Alliance (BMA) in the Bowen Basin region in central Queensland. The five-year agreement will see Dyno Nobel supply its explosives products and services to BMA’s Goonyella, Saraji, Peak Downs, and Caval Ridge mines. In addition, Dyno Nobel will continue to supply the Daunia mine which BMA recently divested to Whitehaven Coal. Ammonium nitrate and premium emulsion products will be locally manufactured at Dyno Nobel’s Moranbah plant in the Bowen Basin. The Moranbah plant has a secure and sustainable long-term future following the finalisation of a gas supply agreement until 2033, with the option to extend to 2041.

Dyno Nobel Asia Pacific President Greg Hayne said: “We expect to supply around 20% more ammonium nitrate each year from July as part of the new agreement… the long-term gas supply agreement we have secured with Queensland Pacific Metals (QPM) ensures that our team at Moran-bah can safely provide our customers with domestically manufactured bulk explosives protected from volatile global ammonia pricing. The possible use of waste mine gas from our customers’ coal mining operations has the potential to further enhance the sustainability of our Moranbah plant and provide environmental benefits for our customers and the community.”

UNITED ARAB EMIRATES

Notice to proceed for low carbon ammonia plant

Tecnimont says that Fertiglobe has given it notice to proceed with construction activities related to the low-carbon ammonia plant under development in the Ta’ziz Derivatives Park near Ruwais, Abu Dhabi. Fertiglobe is developing the low carbon ammonia plant with its project partners Ta’ziz (a joint venture between ADNOC and Abu Dhabi sovereign wealth fund ADQ), Mitsui and GS Energy Corporation. Once in operation in 2027, the ammonia facility will produce 3,000 t/d (1 million t/a) of ammonia. The plant will be one of a series of global-scale chemical and industrial facilities that Ta’ziz is developing in the area.

UNITED KINGDOM

Uhde and Johnson Matthey to offer integrated solution for blue ammonia

Johnson Matthey (JM) and thyssenkrupp Uhde say that they have signed a memorandum of understanding to jointly offer a fully integrated blue ammonia solution. The technology combines Uhde’s proven ammonia process and JM’s hydrogen expertise through its LCHTM technology, which will enable the production of blue ammonia with up to 99% CO2 capture. thyssenkrupp Uhde has licensed, engineered, or constructed over 130 ammonia plants worldwide since 1928 and is the market leader for plants with a capacity greater than 3,000 t/d via its dual pressure technology. JM’s LCH technology, which utilises JM’s autothermal reformer alone or in conjunction with JM’s gas heated reformer, has been selected for several of the world’s first large scale blue hydrogen projects including bp’s H2Teesside, a 700 MW low carbon hydrogen production plant, and the H2H Saltend project with Equinor and Linde for a 600 MWt low carbon hydrogen production plant.

Alberto Giovanzana, Managing Director – Catalyst Technologies at Johnson Matthey, said: “We know multiple routes are needed in the energy transition, and ammonia provides several options because it can be used directly in power and shipping industries, and as a hydrogen carrier to safely transport hydrogen to areas it is not easy to produce. Combining our expertise and over two decades worth of partnership with thyssenkrupp Uhde, we are excited to offer this technology which will allow our customers to produce ammonia with significantly lower CO2 emissions.”

NORWAY

Electricity supply secured for large-scale green ammonia plant

Norwegian green ammonia production firm North Ammonia AS has secured 171 MW of grid capacity for a large-scale green ammonia production plant in Eyedehavn, near Arendal, Norway from energy company Glitre Nett. The supply agreement ensures that Eydehavn Green Ammonia will have sufficient electricity capacity to produce around 145,000 t/a of green ammonia. Targeting a start-up in production in 2028, the firm is working towards a final investment decision for the project in 2025.

“This is an important milestone and gives us a good basis for continuing the development of our facility in Eydehaven and reinforces Arendal’s position as an attractive location for green industrial development in Norway,” said Mikkel Torud, CEO of North Ammonia.

In mid-2023, the company partnered with Oslo-listed shipping company Hoegh Autoliners for the supply, distribution, delivery and consumption of green ammonia.The partnership aims to power at least 5% of their deep-sea operations with green ammonia by 2030.