Nitrogen+Syngas 391 Sep-Oct 2024
30 September 2024
Nitrogen Industry News
Nitrogen Industry News
UNITED STATES
Woodside to buy OCI clean ammonia plant
OCI Global says that it has reached an agreement for the sale of 100% of its equity interests in its Clean Ammonia project currently under construction in Beaumont, Texas for $2.35 billion on a cash and debt free basis. The buyer is Australian LNG and energy company Woodside Energy Group Ltd. Woodside will pay 80% of the purchase price to OCI at closing of the transaction, with the balance payable at project completion, according to agreed terms and conditions. OCI will continue to manage the construction, commissioning and startup of the facility and will continue to direct the contractors until the project is fully staffed and operational, at which point it will hand it over to Woodside. The transaction is expected to close in H2 2024, subject to shareholder approval.
The clean ammonia project began engineering work in late 2021 and construction in December 2022m and is expected to produce first ammonia in 2025. It uses Linde’s low CI hydrogen production and carbon capture technology with OCI’s ammonia production, storage and transportation infrastructure. In addition, Linde has contracted with ExxonMobil for the CO2 transportation and sequestration infrastructure. The project in its first phase will result in the capture and sequestration of 1.7 million t/a of CO2, and will be capable of producing 1.1 million t/a of blue ammonia in its first phase, with the necessary infrastructure and utilities in place to double that capacity in its existing plot plan. Permitting for the second line has been submitted and is expected to be received by year-end.
Nassef Sawiris, Executive Chairman of OCI commented: “We are exceptionally proud to have put in motion on a global scale the first blue ammonia project, with first production expected in less than a year from now. This pioneering investment will contribute to the global availability of low-carbon intensity ammonia, with significant potential to reduce carbon emissions in hard-to-abate sectors, including existing markets in fertilizer and industrial sectors, as well as in new applications in power and shipping. We are confident that in Woodside we have found the rightful custodian for this landmark asset and its talented employees. Under Woodside’s leadership, OCI Clean Ammonia will play a vital role in the global energy transition, delivering new energy products and lower carbon services to reduce Woodside’s customers’ emissions globally.”
Wabash Valley selects Baker Hughes for CO2 sequestration
Energy technology company Baker Hughes has signed a long-term agreement with Wabash Valley Resources (WVR) to supply advanced technology services and solutions to support WVR’s ammonia production with compression systems, injection well construction and perform testing and monitoring services for the geological sequestration of carbon dioxide.
Wabash Valley Resources’ low carbon ammonia fertilizer project will relocate an existing gasification-based ammonia plant to become Indiana’s first ammonia fertilizer plant. It will serve the US Corn Belt by creating a reliable supply of domestic, lower cost fertilizer produced through a zero-carbon-capable process while capturing 1.65 million t/a of CO2. In January 2024, WVR received two Class VI permits from the US EPA to construct CO2 injection wells in Indiana, the first such permits issued by the EPA since 2014 and the first in a new wave of over 100 well applications pending.
“We are excited for this milestone with Wabash Valley Resources to advance geological carbon capture and storage technology in the United States,” said Judit Prieto, senior vice president for Enterprise Customer Solutions at Baker Hughes. “This agreement underscores Baker Hughes’ strategic commitment to new energy ventures that leverage our technical excellence and safety standards through decades of experience.”
Agreement on carbon capture
ExxonMobil has signed an agreement with CF Industries to capture and store up to 500,000 t/a of carbon dioxide from CF’s facilities in Yazoo City, Mississippi. Dan Ammann, president of ExxonMobil Low Carbon Solutions, said, “We’re serious about expanding carbon capture – a safe, proven solution for hard-to-decarbonize industries. Our agreement with CF Industries is the latest example of how we can help industrial customers make significant progress, quickly and economically.”
The project will capture up to 50% of the site’s carbon emissions and is expected to begin operations in 2028. “We’ve set ambitious goals to reduce our emissions from our operations, and CCS will play a key role in getting us there. We are really pleased to expand our relationship with ExxonMobil for our second CCS project together as their leading expertise helps accelerate our decarbonization journey,” said Tony Will, president and CEO of CF Industries.
CF Industries will be investing $100 million in the project and expects it will be able to qualify for up to $85/t of captured CO2 under the US IRA’s 45Q tax credit mechanism.
Low carbon nitrogen plant seeking Federal funding
The city of Richland in Washington state has requested $5 million in Federal funding for engineering work needed to connect its new Northwest Advanced Clean Energy Park and the Bonneville Power Administration grid. The city is the site for a green ammonia development by Atlas Agro, which hopes to build an ammonia and downstream nitrogen fertilizer plant using low carbon energy from nuclear power. Atlas has put the size of the projected plant at 700,000 t/a, with an investment cost of $1 billion.
MEXICO
Feasibility study for new urea plant
Portuguese civil construction group Mota-Engil has signed an agreement with state run Mexican national oil company, Petróleos Mexicanos (Pemex), for the construction of an ammonia-urea and downstream urea solutions plant at Escolin, in Vera Cruz state. The agreement covers the engineering, construction, financing and operation of a complex producing ammonia, urea and DEF urea solutions, with an annual production equivalent to 700,000 tonnes ammonia. It is hoped that the plant will decrease Mexico’s imports of fertilizers.
The contract uses a ‘tolling’ model, whereby Pemex delivers the main raw materials (gas and water) to the operator, who will be the only responsible for their transformation and for the delivery of the final product, without price change risk of the raw materials and/or any responsibility in the sale of the final product. The project will be developed in three phases, beginning with engineering feasibility studies lasting 4-6 months. The second phase, construction, is expected to last 42 months and have an investment cost of US$1.2 billion. The final, operation phase is expected to last for 20 years.
Mota-Engil says that it will work with Spanish group Duro Felguera on the project.
AUSTRALIA
Incitec Pivot ends fertilizer sales talks
Incitec Pivot Ltd says that it has ceased negotiations with PT Pupuk Kalimantan Timur for the sale of its fertilisers business, Incitec Pivot Fertilisers (IPF). The company says that the decision “follows careful consideration of how to maximise value for shareholders while balancing the risks of completing the transaction in a reasonable timeframe.”
IPL will continue to manage its Dyno Nobel explosives business and IPF fertilizer business separately. Dyno Nobel will focus on delivering its strategy to expand its position as a leading global, premium explosives business that provides its customers with safe and cutting-edge technology, solutions and services. IPF will continue to deliver on its strategy of providing value-add fertilisers and soil health services that increase productivity for agricultural customers.
EGYPT
Agreement on green ammonia
TAQA Arabia and Voltalia have signed a framework agreement with the Egyptian government for the production of green ammonia, with a total investment that could reach up to $3.40 billion. The project is intended to be carried out in two identical phases, each featuring a 500 MW electrolyser powered by over 1.30 GW of solar and wind energy, according to a press release. Located at a greenfield site near Ain Sokhna port in the Suez Canal Economic Zone, the facility will have an annual production capacity exceeding 350,000 t/a of hydrogen per phase.
CHINA
Stamicarbon to revamp urea plant
Maire subsidiary NextChem says that its Stamicarbon nitrogen technology licensing group has been selected by Linggu Chemical Co. Ltd to provide the licensing and process design package to improve the energy efficiency of an existing urea plant in China with an overall capacity of 3,100 t/d. The upgrade will include Stamicarbon’s Advanced MP Flash design technology, a key component of the EVOLVE Energy™ series, which enhances plant efficiency by reducing steam usage and optimising feedstock utilisation. It can lower overall energy consumption by up to 20%, enabling the plant to achieve substantial energy savings without the need for additional high-pressure equipment. Alessandro Bernini, CEO of Maire noted that the project significantly strengthens the company’s technological presence in China, a key market for advanced industrial solutions.
Construction begins on large scale green ammonia project
Jizhong New Energy has begun construction on the Siziwang Banner green ammonia demonstration project in Inner Mongolia, close to the city of Ulanqab. As reported in China Daily, 1.25 GW of wind and 1.15 GW of solar generating capacity will power “160 sets of 1200 Nm3 /h [alkaline] electrolysers”, ultimately producing 500,000 t/a of renewable ammonia. The $2.6 billion project will be located at the existing Duerbot Chemical Park, and be built over three phases. Jizhong New Energy is a subsidiary of state-owned coal company Jizhong Energy Group. The project will also feature thirty six 2,000-m3 spherical ammonia and hydrogen storage tanks, and some of the wind and solar power generated by the project will be supplied to the local electricity grid.
China may use ammonia co-firing at coal based power plants
China’s central planning National Development and Reform Commission (NDRC) has launched an Action Plan for Low-Carbon Transformation and Construction of Coal Power Plants (2024-27) which aims to reduce carbon emissions from China’s large coal fired power sector. All coal-fired power plants in China will have to begin their “initial low-carbon transformation” in 2025 as part of plans to reduce their CO2 emissions by 50% by 2027, according to the Action Plan. The plan offers coal-plant owners three methods to reduce emissions: by co-firing either biomass or green ammonia produced from renewable hydrogen; or by using carbon capture, utilisation and storage (CCUS).
OMAN
Shell selects KBR technology for Blue Horizons Project
KBR says that its blue ammonia technology has been chosen by Shell for the Blue Horizons low-carbon hydrogen and ammonia project in Duqm, Oman. This facility will use KBR’s advanced ammonia synthesis loop technology to produce ammonia with lower carbon intensity and at a competitive cost. Under the terms of the contract, KBR will deliver a proprietary engineering design for the 3,000 t/d ammonia plant, which will use hydrogen generated by Shell’s Blue Hydrogen technology. Jay Ibrahim, president of KBR Sustainable Technology Solutions, noted that the project aligns with Oman’s Vision 2040 targets. The blue hydrogen and ammonia are expected to be used in local industries in the Duqm Special Economic Zone and exported to international markets.
Shell has also contracted Wood plc to deliver pre-front-end engineering design (FEED) services. Wood will design the integrated blue hydrogen and ammonia production plant, marine facilities including ammonia storage, 200-km pipeline and CO2 injection plant.
RUSSIA
Plans for additional nitrogen production
In its most recent annual report, TogliattiAzot (TOAZ) says that it plans to significantly increase ammonia and urea production by 2035. The company says that it intends to ramp up ammonia output to 4 million t/a, an increase of around 500,000 t/a on current production, and more than double urea production from 1.76 million t/a to 3.9 million t/a, with the addition of two new urea plants, each with a capacity of around 850,000 t/a. The company is also targeting an additional 690,000 t/a of nitric acid, 786,000 t/a of ammonium nitrate, 500,000 t/a of UAN, 200,000 t/a of melamine and 100,000 t/a of NPK fertilizer production.
This year TOAZ expects to expand its ammonia loading system into railway tanks, a potentially important factor in moving anhydrous material from the firm’s production facility in the Russian interior to its yet-to-commission ammonia transhipment terminal at Taman on the Black Sea coast in the absence of the trans-Ukraine ammonia pipeline.
Elsewhere, construction is reportedly nearing completion at Shchekinoazot’s new ammonia-urea unit in Tula province. The facility will have capacity to produce 525,000 t/a of ammonia and up to 700,000 t/a of urea, with design capacity expected to be reached by 2025 Q1, according to a company statement.
BRAZIL
Site reserved for green ammonia project
Porto do Açu, a subsidiary of economic group Prumo Logística, and Norwegian developer of green hydrogen and ammonia plants Fuella have signed a contract reserving 1.0 million m2 of land for a new low-carbon hydrogen hub at the port complex in the north of the state of Rio de Janeiro. The project includes green hydrogen production by 520 MW of electrolysis with downstream ammonia and methanol production. The facility is projected to produce 400,000 t/a of green ammonia, which could be shipped through the port’s liquids terminal, for export or domestic uses. A final investment decision is expected by 2028, and first production by 2030.
“This is a landmark agreement for us, in expanding our portfolio of projects internationally, to highly competitive and attractive regions. We believe that Porto do Açu is a fantastic location and partner for us. The winning factors for us were not only the site and the infrastructure in place, but also the dedication, competence and support of the team,” said Thorsten Helms, Managing Director Business & Corporate Development at Fuella.
Tender to restart urea plant
State oil company Petrobras has invited tenders to reactivate its Araucária Nitrogenados SA (ANSA) fertilizer plant in Paraná state. The tender includes inspection and maintenance services for storage and tanks, including boiler-making and complementary equipment. Located adjacent to the Presidente Getúlio Vargas refinery (REPAR), ANSA has production capacity for 720,000 t/a of urea and 475,000 t/a of ammonia, as well as 450,000 m3/year of automotive urea solutions. Petrobras approved the restart of operations at the plant, which has been idled since 2020, in June, aiming to restart operations by the end of 2024. Petrobras is also looking at completing construction at the UFN-III ammonia-urea plant in Mato Grosso do Sul state and is preparing the respective bidding process.
ARGENTINA
Feasibility study for nano urea plant
The Indian Farmers Fertiliser Cooperative (Iffco) says that it will set up a ‘Nano Urea Liquid’ manufacturing plant in Argentina in partnership with the Cooperative Confederation of Argentina (Cooperar) and Instituto Nacional de Asociativismo y Economia Social (INAES). The three companies have signed a memorandum of understanding to analyse the feasibility of setting up the plant, as well as exploring cooperation in trade and investment in areas of mutual interest, including agrochemicals and agricultural inputs to achieve sustainable development.
CHILE
Environmental review for green ammonia project
Austrian developer AustriaEnergy says it has submitted its $11 billion green ammonia project for environmental review. HNH Energy, to be based in the windswept Magallanes region, will involve a wind park with 194 turbines generating 1.4 GW of energy, and hydrogen electrolysis and ammonia production at San Gregorio, 120 km northeast of Punta Arenas. Construction, tentatively scheduled to begin in July 2026, is expected to take six years. Planned green ammonia production capacity in the final phase is estimated at 6,600 t/d.
KUWAIT
KBR to advise on renewables and hydrogen project
KBR has been awarded an advisory consulting contract by Kuwait Oil Company for the development of a country-wide ‘master plan’ for the production of 17 GW of renewables and 25 GW of green hydrogen by 2050. Under the terms of the contract, KBR will provide advisory consulting services to develop a phased strategy for the deployment of wind and solar power, combined with power storage capability. The renewable power capability will be linked to the production of green hydrogen for internal industrial use, as well as for export purposes. The work is expected to be performed over the next 18 months, with KBR developing a market analysis, techno-commercial feasibility studies, as well training of Kuwaiti nationals.
Jay Ibrahim, President of KBR Sustainable Technology Solutions, said: “We are excited to be a part of this significant national level strategy in Kuwait, as we continue to grow our presence in country. This win highlights our advisory capabilities in the development of major energy transition investments at a national level, supported by decades of successful project delivery and technology deployment in the GCC region. It is indicative of KBR’s strategic commitment to Kuwait, sustainability and the energy transition.”
GERMANY
Clariant and KBR expand strategic collaboration in low-carbon ammonia
Clariant Catalysts has announced the expansion of its strategic cooperation with KBR in the field of ammonia production. The partners will continue collaborating on traditional ammonia projects while significantly increasing their focus on low-carbon and carbon-free “green ammonia” applications. The solutions will combine Clariant’s AmoMax ammonia synthesis catalysts with KBR’s K-GreeN® ammonia technologies to maximise the economics and energy efficiency of ammonia production.
Georg Anfang, Vice President Syngas and Fuels at Clariant Catalysts, said, “We are proud of our long and successful history as partners and are delighted to strengthen our cooperation with KBR. By extending our collaboration towards sustainable ammonia solutions, we generate synergies for innovations supporting fertilizer production and the energy transition. Our state-of-the-art catalysts optimally complement KBR’s advanced process technologies to enable economical and reliable large-scale production of low-carbon and green ammonia.”
Green ammonia from Norway
German energy company EnBW says that it is starting to market 100,000 tonnes of green ammonia from the Skipavika Green Ammonia (SkiGA) project in Norway. The volumes are planned to be available from 2027, and according to EnBW, can be transported to various delivery locations, such as the port of Skipavika in Norway, to selected terminals in Western Europe or to industrial sites, including in Germany. Interested companies should register online to bid for the corresponding capacity, and the process starts on July 26, 2024. SkiGA is based on 130 MW of electrolyser capacity, and aims to cut carbon emissions by around 240,000 t/a compared to the use of ‘grey’ ammonia.
CANADA
Green ammonia project may be abandoned
Fortescue Future Industries appears to be scaling back its ambitious plans for green hydrogen and ammonia development, and is pushing back the timescale for its proposed $2 billion, 700,000 t/a plant at Prince George, British Columbia, and may abandon it altogether. The plant had anticipated taking green energy from wind and hydroelectric power, but the 1 GW of power required appeared to be beyond what could be supplied locally. Fortescue has said that it will focus on projects where the economics are better, with four projects currently under development in Australia, the US, Norway and Brazil.
ANGOLA
Cash boost for urea development
The African Export-Import Bank has announced its financial support for an ammonia-urea plant at Soyo. Afreximbank will loan $1.4 billion, and will act as the lead arranger and financial advisor for the project, with Angolan conglomerate OPAIA Group and state-owned Sonangol P&P Natural Gas (Sonagas) serving as sponsors. Currently, Angola imports over $120 million worth of fertilizers annually to meet local consumption demands. The completion of the new plant, which will have a capacity of 3,870 t/d of urea, is expected to dramatically reduce these imports. Production is currently expected to start in 2027.
IRAN
Ammonia output to reach 5 million t/a
The Iranian National Petrochemical Company says that ammonia production in Iran is expected to rise to 5 million t/a this year, with the launch of the 450,000 t/a Persian Gulf Star Oil Company (PGSOC)’s ammonia plant at the port of Bandar Abbas.
TANZANIA
New urea plant
The Tanzania Investment Center (TIC), the Tanzania Fertilizer Regulatory Authority (TFRA) and the Petroleum Development Corporation (TPDC) have signed a memorandum of understanding (MoU) with ESSA in Indonesia to develop a new gas-based ammonia-urea plant in the Mtwara region. The agreement was signed on 31 July in Dar es Salaam. Construction of the plant is expected to be completed by 2027 and production will begin two years later, in 2029. Speaking at the signing, Tanzanian Minister of Planning and Investment, Professor Kitila Mkumbo, said the construction of the factory will make Tanzania completely independent. Tanzanian fertilizer consumption has risen to 800,000 t/a in 2023-24, according to the Tanzania Fertilizer Regulatory Authority (TFRA).
PARAGUAY
Yara signs CAN sales agreement
Yara International has entered into a strategic heads of terms agreement with ATOME PLC to purchase the entire output of ATOME’s forthcoming renewable calcium ammonium nitrate (CAN) production facility, sited in Villeta, Paraguay. Under this agreement, Yara will market and sell the fertilizer under its YaraBela product line. The project, set to commence in 2027, will use 145 MW of baseload renewable power to produce green ammonia and export downstream fertilizers. ATOME has successfully concluded the front-end engineering and design (FEED) phase for its project during the first half of 2024, positioning the company to make a final investment decision later this year. Upon completion, the Villeta facility is set to produce up to 264,000 t/a of calcium ammonium nitrate fertilizer.
