Nitrogen+Syngas 392 Nov-Dec 2024
30 November 2024
Nitrogen Industry News
Nitrogen Industry News
QATAR
New urea complex for Mesaieed
QatarEnergy has announced its decision to build a new, world-scale urea production complex that will more than double Qatar’s urea production. The project is aiming to construct three ammonia production lines which will supply four new world-scale urea production trains in Mesaieed Industrial City. Total capacity for the new complex is projected to be 6.4 million t/a, more than doubling Qatar’s annual urea production from about 6 million tons per annum currently to 12.4 million tons per annum. Production from the project’s first new urea train is expected before the end of this decade.
The announcement was made by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and president and CEO of QatarEnergy, during a press conference held at the company’s headquarters in Doha. Al-Kaabi said: “We have been producing ammonia and urea in Qatar for over 50 years. Today, we are expanding our experience and further solidifying our position by this unprecedented mega-project that will make the State of Qatar the world’s largest urea producer, playing a crucial role in ensuring food security for hundreds of millions of people around the globe, day after day. Developing this project in Mesaieed Industrial City will ensure the optimum utilisation of the excellent existing infrastructure for the petrochemical and fertilizer industries, including the city’s export port, which is one of the largest fertilizer and petrochemical export facilities in the MENA region. It will also establish Mesaieed as the urea production capital of the world.”
UNITED STATES
ADNOC to partner ExxonMobil on new low carbon ammonia facility
ADNOC has signed an agreement to take a 35% equity stake in ExxonMobil Corporation’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas. The facility aims to help reduce greenhouse gas emissions across hard-to-decarbonise sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels. Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be capable of producing up to 1 bcf/d daily of low-carbon hydrogen, with approximately 98% of carbon dioxide (CO 2 ) removed and sequestered, generating more than 1 million tonnes of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029. The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production.
Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, said: “This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”
Darren Woods, ExxonMobil Chairman and CEO, said: “We appreciate His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s support for this groundbreaking partnership. This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”
OCI completes sale of Clean Ammonia project to Woodside
OCI Global says it has successfully completed the sale of its 1.1 million t/a Clean Ammonia project under construction in Beaumont, Texas to Woodside Energy Group for $2.35 billion on a cash-free debt-free basis. OCI says that the closing of the transaction “marks a significant milestone in OCI’s strategy to unlock value for shareholders”. OCI has recently raised $11.6 billion from the sales of Fertiglobe, IFCO, OCI Methanol and OCI Clean Ammonia. As part of the agreement, OCI will continue to manage the construction, commissioning, and startup of the facility through provisional acceptance, and is targeting production of first ammonia from 2025 and lower carbon ammonia from 2026 using carbon capture and strorage.
Loan guarantee for Wabash Valley ammonia project
The US Department of Energy has agreed a loan guarantee of up to $1.56 billion to Wabash Valley Resources to help finance a commercial-scale waste-toammonia production facility using carbon capture and sequestration (CCS) technology at West Terre Haute, Indiana. The project will repurpose an industrial gasifier to use petroleum coke while permanently storing carbon dioxide to produce 500,000 t/a of ammonia for the nearby Corn Belt, contributing to both food security and climate goals.
The loan will form part of a total investment of $2.4 billion that Wabash Valley Resources will secure for the project through private investment.
Mitsubishi to buy stake in low carbon ammonia project
Mitsubishi says that it has signed a preliminary agreement for purchasing a stake in ExxonMobil’s hydrogen and ammonia project in Baytown, Texas. The announcement is seen as signalling the beginning of negotiations rather than their conclusion, with details of the exact size of the stake and volumes for any offtake agreements expected to be confirmed in 2025. With a view of beginning operations in 2029 the facility’s output of 1.0 million t/a of blue ammonia will become part of Japan’s decarbonisation efforts while providing heavy industry like steel the necessary volumes to maintain power generation and process heat activities.
Dan Ammann, president of ExxonMobil Low Carbon Solutions, said: “We look forward to furthering our leadership position, alongside Mitsubishi Corporation, to advance low-carbon hydrogen and ammonia globally, helping the world achieve a lower emission future.”
Japanese refining company Idemitsu Kosan is also a partner in the joint venture and has agreed to take part of the offtake. Together with Mitsubishi the two companies are exploring the feasibility of converting one of its liquefied petroleum gas terminals in western Japan into an ammonia terminal.
Cronus receives permit for ammonia plant
Cronus Chemicals LLC says it has received a construction and air permit from the US Environmental Protection Agency (EPA) for its new ammonia plant in Tuscola, Illinois. The facility will use proprietary Uhde-thyssenkrupp Industrial Solutions technology to produce 950,000 st/a of ammonia. Cronus says that its strategic location, surrounded by three interstate gas pipelines, ensures access to ample natural gas resources, leading to competitive pricing and operational efficiency. Demand for ammonia continues to outpace supply in the US, and Illinois is the largest consumer of agricultural ammonia.
“We are thrilled to announce the receipt of the EPA Construction and Air Permit, a critical milestone for the project and our commitment to providing reliable, locally produced Ammonia,” said Erzin Atac, Cronus Chemicals CEO. “We expect our new plant, in the heart of the highest consumption region in the country will alleviate the shortage as well as the increasing supply concerns of local farmers and industrial users.”
DENMARK
Green ammonia plant operational
A 5,000 t/a green ammonia plant has come onstream at Ramme in Denmark, entirely from solar and wind energy. The developers, Topsoe, Skovgaard Energy and Vestas, say that this will prevent 8,200 t/a of carbon dioxide emissions by optimising the fluctuating power feed from the plant’s solar panels and wind turbines to the electrolysis and ammonia synthesis loop based on these fluctuations, and improving cost-effectiveness throughout the process. The project has received e11 million ($12 million) from the Danish Energy Technology Development and Demonstration Program.
EUROPEAN UNION
Fertigolbe to supply renewable ammonia from 2027
Fertiglobe has been selected as the winning bidder to supply renewable ammonia to the European Union following a pilot auction by H2Global, an initiative funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). Abu Dhabi-based Fertiglobe, a strategic partnership between ADNOC and OCI Global, has committed to supplying renewable ammonia starting at a potential 19,500 t/a in 2027 (subject to actual production start date and supply availability), with volumes potentially scaling up to 397,000 t/a cumulatively by 2033, at a delivered contract price of e1,000/t.
Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said: “This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards a final investment decision for Egypt Green Hydrogen, expected in H1 2025. Our selection as the winning bidder in H2Global’s pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonisation technology, while maintaining our disciplined growth strategy.”
The German government has committed e4.43 billion to H2Global’s ‘doubleauction’ mechanism implemented by Hintco to facilitate the rapid expansion of renewable hydrogen and derivative products. The ‘double-auction’ model, whereby buyers and sellers actively participate, aims to bridge the difference between the high prices at which hydrogen is currently being traded on the global market, and the lower prices at which it can be sold on and be used in economically viable ways at regional level. H2Global says that the auction demonstrates that renewable ammonia can be imported into the EU at attractive prices with targeted support being offered to the most competitive international projects.
Timo Bollerhey, Chief Executive Officer of Hintco and co-creator of H2Global said: “This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives. The energy transition requires value for money, workable solutions – and this first pilot auction has demonstrated that financial and procurement innovations like H2Global’s mechanism not only work but are needed to create thriving markets that motivate and mobilise private finance.”
RUSSIA
Lukoil to build urea plant at Budyonnovsk
Interfax reports that Lukoil has conducted a ground breaking ceremony for the construction of an ammonia-urea complex at the Stavrolen plant, a 100% subsidiary of Lukoil in Budyonnovsk, Stavropol region. The complex will take natural gas from Lukoil Group’s gas fields in the Northern Caspian region as feedstock. According to the government of Stavropol Krai, urea production will be 1.75 million t/a. The project is planned to be implemented within five years.
“For the region, the construction of a new ultra-modern production facility is of strategic importance. This is not only additional tax revenues, but also about 600 new jobs. The industrial facility will help strengthen the associated infrastructure – road, utilities, social. It is important that the investor paid special attention to compliance with all environmental safety standards,” Interfax quotes the governor of the region Vladimir Vladimirov.
New urea plant for Arctic
Russia’s Azot Group signed a memorandum of understanding with AEON and VEB to build a urea and potassium nitrate plant at Vorkuta in the northern Komi Republic by 2031. Projected capacities are 1.2 million t/a of ammonia, and 1.7 million t/a of urea, at a total investment cost of $2.2 billion. Finished products will reportedly be shipped along Russia’s Northern Sea Route, meaning an additional 200 km of railway and a port in Ust-Kara, will need to be constructed, both of which will require an additional $1.1 billion worth of investment, according to Komi governor Vladimir Uiba.
EGYPT
Stamicarbon to revamp urea plant
Maire Tecnimont subsidiary Stamicarbon has won the design and process package contract for the modernisation and expansion of the urea plant at Delta Fertilizers and Chemical Industries in Talkha. As part of the revamp, Stamicarbon will increase the urea plant’s production capacity from 1,725 t/d to 2,250 t/d by implementing a highly energy-efficient design. The project will reduce steam consumption by 35% and cooling water usage by 16% by using high-pressure steam three times instead of twice, leading to energy savings compared to traditional carbon dioxide removal methods. The contract also includes the licensing and design of a new urea granulation unit with a capacity of 2,250 t/d, using Stamicarbon’s liquid solution granulation technology. The Egyptian government is aiming to develop and expand the Delta Fertilizers plants, a subsidiary of the Holding Company for Chemical Industries, with a total investment estimated at $400 million. Earlier this year, German company thyssenkrupp signed a contract with Delta Fertilizers and Chemical Industries to rehabilitate and operate the existing ammonia production complex at Talkha.
KIMA to build new AN plant
Industrial services provided Bilfinger has been awarded the engineering, procurement and construction contract by Egyptian Chemical Industries (KIMA) for a major chemical and fertilizer plant at Aswan. The plant will produce 600 t/d of nitric acid per day, which will be transformed into 800 t/d of granulated ammonium nitrate fertilizer.
“As a worldwide exporter of chemical products, this new plant is crucial for growing our production capabilities in Aswan,” indicates Abdel Meguid Heguazi, CEO of KIMA. “By the end of 2027, it will allow us to produce 800 tons of granulated ammonium nitrate in fertilizer quality per day, which will be delivered to clients locally and around the world. We trust that Bilfinger will be the perfect solution partner to represent us in all project phases along the way and to make sure that we meet our targets most efficiently.”
ROMANIA
Potential sale of Azomures plant
Swiss-based Ameropa, owner of the Azomures fertilizer plant in Romania, is reportedly considering its sale due to high gas prices which have forced periodic shutdowns of the plant over the past couple of years. Azomures says that it is in discussions with Romanian chemical producer Chimcomplex “to explore ways to unite the chemical industry in Romania, to build a globally competitive force supported by strategic energy resources to supply farmers in Romania.” Romanian largest chemical group, Chimcomplex, owned by local businessman Stefan Vuza, confirmed in a note to investors on October 8 the existence of preliminary discussions related to taking over Azomures.
INDIA
Iffco to launch micronutrient dosed urea solution
India’s Iffco has launched a new ‘nano’ urea solution dosed with ‘nano’ zinc and copper micronutrients after receiving permission from the government to market it. The company hopes that it will displace granular urea in India’s fertilizer market. Nano urea uses small particles of urea only 20-50 nanometres in size, resulting in much faster breakdown in the soil and an 80% increase in the availability of nitrogen to the plant, resulting in higher nutrient use efficiency.
Offtake deal for green ammonia plant
Indian ammonia storage and transportation company Mysore Ammonia has signed a distribution offtake deal with Avaada for the supply of around 100,000 t/a of green ammonia. Avaada is developing a green ammonia plant with a capacity of 500,000 t/a at Tata Steel’s SEZ industrial park in Gopalpur, Odisha which is planning to come onstream in 2027. The memorandum of understanding was officially signed between Avaada Green Fuels Private Ltd, a subsidiary of Avaada Group, and Mysore Ammonia and Chemicals Ltd at Avaada’s headquarters in Mumbai. Commenting on the MoU, Vineet Mittal, chairman of Avaada Group, said, “The signing of this MoU with Mysore Ammonia is a significant milestone in our journey towards sustainable energy solutions. It underscores our unwavering commitment to advancing the production of green fuels like green ammonia in India, which is crucial for driving the transition towards a low-carbon economy. Leveraging our cutting-edge technology and expertise, we aim to support industries in significantly reducing their carbon footprint and fostering environmental stewardship.”
Torrent to build green ammonia plant
Indian power company Torrent Power has signed a memorandum of understanding with the Gujarat state government to develop a 5 GW solar and wind-based power plant in Dwarka district. The company has committed to investing $6.9 billion towards the development of a total of 10 GW of renewable energy capacity in Gujarat by 2030. Part of the power will go towards feeding a 100,000 t/a renewable ammonia production plant in Gujarat, supported by an investment of $860 million.
Samir Mehta, Chairman of Torrent Group said: “As one of India’s largest private sector power utilities, Torrent Power stands committed to contributing to the nation’s renewable energy journey… This commitment not only underscores our dedication to advancing green energy solutions but also highlights the fact that our business operations are aligned with national priorities. We thank the Government of India for its futuristic policies and creating an enabling environment to foster growth of the sector.”
Ravindra Heraeus acquires Arora Matthey’s catalyst and recycling site
Ravindra Heraeus has acquired the business of Arora Matthey in Vizag, India including over 70 employees. Heraeus says that via the acquisition, customers in chemicals and pharmaceuticals industries will benefit from Heraeus’ range of precious metals catalyst and recycling technology.
“We are very excited to take over the business. Arora Matthey has long standing relationships with customers and we are committed to continue providing them with leading catalyst and recycling solutions”, said Shailesh Choksi, Managing Director at Ravindra Heraeus. The company already produces heterogenous precious metal catalysts at its main site in Udaipur. “This allows us to further expand our footprint to an advantageous location in south India, in line with our commitment to provide support close to our customers.” The acquisition follows several significant investments in the company’s main site in Udaipur in expanding its pyrometallurgical and wet chemical recycling capacities and capabilities.
GERMANY
Yara opens new ammonia import terminal
Yara International has officially opened its new ammonia import terminal in Brunsbüttel, on the North Sea and Kiel Canal. The company says that this location makes it an ideal hub for enabling the hydrogen economy in Germany. With the new terminal, Yara has the infrastructure to enable imports of up to 3 million t/a of low-emission ammonia to Europe.
“As the world’s largest shipper and distributer of ammonia, Yara Clean Ammonia is in a pole position to secure low-emission ammonia supply to Germany, at competitive prices. With its leading global ammonia position, Yara can help kick-start the German hydrogen economy, laying the ground for a net zero future,” says Hans Olav Raen, CEO Yara Clean Ammonia.
Demand for low-emission ammonia in Germany is expected to increase significantly in the coming years. The Federal Ministry for Economic Affairs and Climate Protection estimates that up to 70% of future national ammonia requirements will have to be imported by 2030. After this, the volumes will be even higher.
RWE and AM Green sign green ammonia supply deal
German RWE Supply & Trading has signed a memorandum of understanding (MoU) with AM Green Ammonia (AMG), a subsidiary of the Indian AM Green Group, for the long-term supply of green ammonia from the latter’s production sites in Kakinada and Tuticorin. The deal outlines the supply of up to 250,000 t/a of green ammonia. Initially, 50,000 t/a of green ammonia will be produced at the Kakinada site, with the remaining volume of up to 200,000 t/a to be sourced from Tuticorin. According to RWE, AMG’s ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind and hydroelectric power, and the produced ammonia will meet EU standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III). Deliveries of green ammonia from AMG’s sites are expected to start by 2027.
ANGOLA
Another green ammonia project
Angola’s national oil company Sonangol has signed an agreement with energy companies Conjuncta, CWP and Gauff for the development of the Barra do Dande green hydrogen project. As part of the project, Barra do Dande will produce up to 1,200 t/a of ammonia for export to the European market. The facility will feature the installation of 600 MW of renewable energy capacity – generated from hydro-electric power sources.
SOUTH KOREA
KBR to partner in floating ammonia plant study
Engineering and construction services company KBR has been awarded a conceptual study contract for floating blue ammonia production from South Korean shipbuilder Samsung Heavy Industries. The project will use KBR’s blue ammonia technology, suitable for offshore production, and leverage Samsung’s expertise in the design of large floating vessels. KBR says that the concept would deliver a sustainable platform for its clients to achieve their energy transition objectives with greater flexibility.
“We are proud to collaborate with SHI for this strategic project and provide our low-carbon blue ammonia process technology solution to develop this first-of-its-kind floating ammonia production facility,” said Jay Ibrahim, KBR president of sustainable technology solutions.
CANADA
Fortescue abandons green ammonia project
Fortescue has informed the Environmental Assessment Office of British Columbia province that it is formally withdrawing from work on a green ammonia project at Prince George, and from the environmental assessment process. In a letter, Fortescue said that it is prioritising “projects in locations with favourable green energy policies and affordable and reliable renewable energy.”
The $2 billion project would have required 900 MW of hydroelectricity to produce sufficient hydrogen to make 700,000 t/a of green ammonia, representing almost 90% of the output of a projected new C$16 billion dam and power station in the region.
