Fertilizer International 524 Jan-Feb 2025
24 January 2025
Fertilizer Industry News
Fertilizer Industry News
BRAZIL
Petrobras resumes Tres Lagoas fertilizer unit construction
Brazil’s state-controlled oil company Petrobras plans to resume construction of its UFN-III nitrogen fertilizer unit in Tres Lagoas, Mato Grosso do Sul state.
The company’s board of directors approved the restart at the end of October. The unit has been mothballed for more than a decade.
UFN-III was initially scheduled to become operative in 2015. But work was halted in 2014 when the unit was around 80% complete. Attempts by Petrobras to sell the unit in 2022 subsequently fell through.
The company has now earmarked an investment of BRL 3.5 billion ($614 million) to complete the unit – working to a new start-up date of 2028. The company is also investing $159 million to restart its Araucária Nitrogenados SA (ANSA) plant in Paraná, as well as resume UFN-III construction.
The ANSA plant has been mothballed since 2020. Petrobras announced the investment to return the nitrogen unit to production in August 2024 with operational resumption now expected in May 2025.
The board-level commitment to complete UFN-III and restart ANSA is part of a five-year strategic plan by Petrobras to invest in fertilizer assets – part of a wider $20 billion package for refining, transportation, commercialisation and petrochemicals.
To help deliver on its fertilizer sector ambitions, the company is exploring a new partnership with Yara International, as well as working with Brazil’s agriculture research centre Embrapa to develop renewable feedstocks for lower-carbon fertilizers and biofuels.
The potential partnership with Yara is based on two agreements linked to the return of ANSA to production.
In the first agreement, ANSA will produce automotive liquid reducing agent (ARLA 32) for the domestic market, initially using Yara’s high-quality automotive grade urea as a raw material. Eventually, ARLA 32 will be produced using urea generated on-site by ANSA itself, once production at the unit restarts.
The second technical cooperation agreement involves joint studies covering fertilizer and industrial products, decarbonisation projects, emissions reduction, and the production of renewable and low-carbon fertilizers.
UNITED STATES
EPA backs phosphogypsum road project
The US Environmental Protection Agency (EPA) has approved a pilot road construction project at Mosaic’s New Wales production complex in Polk County, Florida.
Mosaic is proposing to build four test road sections, each one incorporating different amounts of phosphogypsum (PG) as an aggregate in the road base. For decades now, the company has generated large quantities of phosphogypsum as a by-product of phosphoric acid production.
It is typical practice in Florida to store this PG in large-scale stacks that need to be carefully maintained and managed. Environmental groups in the state have, however, long opposed using phosphogypsum – which is mildly radioactive – in road projects, arguing that this creates unacceptable risks to the health of road construction workers and water quality.
However, the EPA has concluded that the project will be safe, although this conclusion and the Agency’s approval applies to the pilot project only and not to any broader use in Florida road construction. “Results from multiple modeling efforts indicate that risks due to the proposed pilot project are low,” the EPA notice said.
Project risks had been properly scoped, in the Agency’s view, with potentially affected individuals identified.
“EPA believes that it is most appropriate to consider the potential risk to site workers and the nearest residents to the site when determining whether the pilot project is as protective as leaving the phosphogypsum in the stack. None of the comments raised topics which EPA did not consider in its technical evaluation or lead to a concern for human health or environmental impacts not previously considered,” the EPA notice added.
While the EPA was deciding whether to approve Mosaic’s project proposal, state legislators and Governor Ron DeSantis approved a 2023 bill authorising Florida’s Department of Transportation to study the use of phosphogypsum in road projects.
“Upon a determination of suitability by the department, phosphogypsum from phosphate production may be used as a construction aggregate material in accordance with the conditions of the United States Environmental Protection Agency approval for this use,” the bill said.
SAUDI ARABIA
Mosaic become Ma’aden shareholder
The Mosaic now owns more than 111 million shares in Saudi Arabian mining company Ma’aden valued at approximately $1.5 billion.
These were received on 24th December on completion of the sale of Mosaic’s 25% interest in the Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC). The MWSPC was previously a joint venture between Mosaic, Ma’aden and Saudi Basic Industries Corporation (SABIC).
Mosaic expects to record a fourth quarter 2024 pre-tax gain of approximately $0.5 billion as a result of the transaction.
“We have enjoyed a long and successful partnership with Ma’aden, and we look forward to continuing our work together under this evolved structure,” said Bruce Bodine, Mosaic’s president and CEO. “Mosaic now has a transparent value for its investment in Ma’aden and greater capital flexibility in the future.”
CHINA
New ammonia plant for Caojing port
Shanghai Huayi Holdings Group is building a 300,000 t/a natural gas-based ammonia project at Shanghai’s Caojing port, according to reports at the CNFA ammonia conference in November. The new plant is expected to commission in 2025.
This project is likely to affect Chinese ammonia import demand in future, as its output is destined for domestic consumption by Caojing-based chemical giants such as BASF, Secco, Covestro, Invista and others.
Annual ammonia demand at Caojing is about 500,000-700,000 tonnes currently. CRU therefore expects the commissioning of the new plant, if it goes ahead in 2025 as scheduled, to have a negative impact on volumes of ammonia imported into China.
ALGERIA
Phosphate megaproject launched
The Algerian Chinese Fertilizers Company (ACFC) has launched a $7 billion integrated phosphate project (PPI) in the country’s Tebessa province, according to trade publication Energy, Capital & Power.
ACFC was formed in 2022 as a joint venture between Algerian firms Manal and Asmidal, a subsidiary of Algerian energy giant Sonatrach, and Chinese firms Wuhuan Engineering and Tian’An Chemical, a nitrogen and phosphate fertilizer producer. It was set up to develop and exploit the Bled El Hadba phosphate deposit at Djebel Onk, with the two Algerian firms owning 56% of ACFC and the two Chinese companies owning the remaining 44%.
The megaproject incudes a large-scale phosphate rock mine with a capacity of 6 million t/a – around 2.5 times greater than Algeria’s current national output – extracted from 2.2 billion tonnes of ore reserves. The scale of this deposit should guarantee a mine life of around 80 years.
CANADA
Jansen megaproject ahead of schedule
BHP is making faster than expected progress on stage one of its Jansen potash mine project (Jansen S1). The under-construction project, located 140 kilometres east of Saskatoon, Saskatchewan, is now 60% complete.
Under stage one plans, the 4.35 million t/a capacity Jansen mine is expected to produce its first potash towards the end of 2026, following a six-year construction phase. The mine will then take a further two years to ramp-up to full capacity (Fertilizer International 515, p54).
Karina Gistelinck, BHP’s asset president potash, said 2024 had been a good year for the project. Jansen S1’s two mine shafts have now been finished, for example, and work on surface structures – such as the mill and railway lines – is well advanced.
“Earlier this year, in around August, we crossed the 50 per cent completion mark on Jansen 1, which is the first stage of the construction of the mine,” Gistelinck told local media outlet Saskatoon StarPhoenix.
The switchover from shaft sinking to underground mining at Jansen also began in late December – with Christoff Kühn, Program Director at BHP, describing this as “another major milestone for Team Jansen” and the project.
“The transition from shaft development to underground mining in the production shaft is testament to the dedication and hard work of our incredible team, as well as the unwavering support from our contracting partners, the local community and the larger BHP business,” Kühn said on LinkedIn. “Drum miner one will now cut the lateral connection between the two shafts before opening up more space underground for our operation to commence our ramp-up.”
Gistelinck also confirmed that work on BHP’s potash export terminal at the Port of Vancouver – where BHP will ship much of Jansen’s production overseas – is also on schedule. “We’re very well on track as well to refurbish an existing coal port into a potash port,” she said.
Gistelinck said BHP’s board of directors gave the go-ahead for Jansen’s second stage (Jansen S2), which is five percent complete, largely because of how well Jansen S1 was going. “Our board got really comfortable and got really excited about the prospect of building the largest mine here in Canada in potash,” she said.
The $18 billion project is currently on budget. BHP has been able to fend off inflationary pressures and keep costs down because of its joint venture with the contractor, and by also spending $4 billion on local procurement to save on transportation and logistics costs. “We have leveraged the BHP global procurement model as well as the very well-established local supply chain,” Gistelinck said.
85 percent of the potash mined at Jansen will be sold and shipped overseas, while the remaining 15% will primarily go to the United States. “We’ll target the key markets, such as Brazil, Southeast Asia, but also India, China and, where possible, also the more mature markets such as Europe,” Gistelinck said.
BHP is relying on new technology to control Jansen’s production costs and guard against increasing competition from Eastern European and Southeast Asian potash suppliers. “We will be the lowest-cost producer here in Canada,” said Gistelinck.
The ACFC is also proposing to construct a state-of-the-art production and processing complex at Qued Kebrik, Energy, Capital & Power said, with 21 phosphate processing units also spread across Souk Ahras, Annaba and Skikda.
The project could enter production as early as 2027, according to the current timetable, creating 12,000 construction-phase jobs and 30,000 direct and indirect jobs once operational.
Existing phosphate producer SOMIPHOS is also planning a one million tonne capacity expansion at its Djebel Onk site.
AUSTRIA
LAT Nitrogen pauses fertilizer production at Linz
LAT Nitrogen curtailed fertilizer production at its Linz site on 2nd December. The move was made in response to higher European natural gas prices and weak regional demand for nitrogen fertilizers.
“Due to the current economic situation and the lacklustre and uncertain demand for straight nitrogen products all across Europe, LAT Nitrogen has decided to curtail fertilizer production of CAN, NPK and urea at its Linz site until at least the end of 2024. Contributing to European fertilizer supply security remains our key priority. Therefore, we aim to resume full production as soon as demand and natural gas developments allow,” company sources said.
ANGOLA
KBR secures ammonia plant contract from AMUFERT
KBR has signed an agreement with AMUFERT for the development of a new ammonia plant in Soyo, Angola.
Under the terms of the contract, KBR will provide the technology license, proprietary engineering design, equipment and the catalyst for AMUFERT’s 2,300 tonnes per day ammonia plant.
“We are thrilled to be a part of this project and support AMUFERT’s efforts in accelerating sustainable agriculture in Angola through our leading ammonia technology,” said Jay Ibrahim, KBR President, Sustainable Technology Solutions. “KBR has a proud legacy in Angola, and we look forward to working closely with AMUFERT and our partners to ensure the success of this important project.”
UNITED KINGDOM
ICL acquires GreenBest
Leading speciality fertilizer producer ICL has acquired GreenBest, a UK-based manufacturer of bespoke fertilizers for the horticulture, sports turf, and landscape sectors.
“With over 25 years of expertise in custom manufacturing of advanced granular and liquid nutrition, GreenBest has built a strong reputation for agility and customer-focused solutions,” said Elad Aharonson, president of ICL Growing Solutions. “Its established presence in the horticulture, landscape and turf sectors, combined with a strong distribution network, enhances our ability to deliver sustainable, tailor-made solutions to customers worldwide.”
Tim Le Mesurier, GreenBest’s founder and managing director, said: “The Green-Best team is thrilled to join the ICL family. It will enable us to combine our strengths, expand our innovation capabilities, and provide even greater value to our customers worldwide.”
The acquisition will benefit both businesses, Aharonson said. GreenBest’s established market channels and production capacity will support future growth, he said, while ICL will offer this Somerset-based business extra investment and supply chain efficiencies.
The GreenBest purchase is ICL’s third acquisition of 2024, signalling the company’s commitment to capturing innovation and strengthening its leadership position in its core markets.
Earlier this year, ICL expanded its biologicals portfolio by purchasing Nitro 1000, a Brazilian biostimulants company, and buying-up CAF, a North American provider of bespoke agricultural formulations. All three acquisitions are part of ICL’s strategy to broaden its fertilizer product offering and position itself for growth in adjacent and new markets.
RUSSIA
New Volgograd urea plant planned
Russian chemicals group Volgograd Polymer plans to construct an ammonia-urea production plant within the Khimprom Special Economic Zone (SEZ) near the city of Volgograd, local media reported on 5th December.
The RUB 207 billion ($2.08 billion) plant will have the capacity to produce two million t/a of granular urea. Initial development is due to start this year, with the plant expected to be commissioned in 2032.
Volgograd Polymer is part-owned (48.75% share) by Russian billionaire Roman Trotsenko, who also retains a 60% share in Azot Group, one of the country’s largest nitrogen fertilizer producers.
CANADA
Stamicarbon wins low-carbon fertilizer plant contracts
Genesis Fertilizers, a farmer-owned consortium, has awarded Stamicarbon contracts covering technology licensing, the process design package (PDP) and the equipment supply for a urea fertilizer plant.
Genesis plans to construct a 2,500 tonnes per day (t/d) capacity urea melt plant at Belle Plaine, Saskatchewan. This is expected to be Canada’s first low-carbon fertilizer plant, thanks to the incorporation of a carbon capture and sequestration (CCS) unit.
The integrated urea and diesel exhaust fluid (DEF) project is currently scheduled to begin operations in 2029, although it is still awaiting a final investment decision. The urea plant will be based on Stamicarbon’s proprietary Adiabatic Flash urea melt technology – part of the company’s NX STAMI UREA ™ portfolio – which offers operational efficiency and reliability while minimising process steam consumption.
The production complex will also include a 1,500 t/d capacity DEF unit. DEF, known as AdBlue® in Europe, is a 32.5% high-purity urea solution that reduces NOx emissions from diesel engines. Stamicarbon’s DEF production design – part of the company’s NX STAMI Specialties portfolio – enables any urea plant to directly produce ISO 22241-compliant DEF from aqueous urea solution. The design combines high product quality with lower production costs by eliminating the need for finishing and blending.
The plant’s licensing contract is subject to Genesis Fertilizers making a final investment decision, Stamicarbon said.
Stamicarbon also announced the successful award of a second Canadian contract at the end of December. This covers the supply of a replacement high-pressure urea stripper for Nutrien’s Fort Saskatchewan Nitrogen Operations (FNO) in Alberta.
“These awards highlight Stamicarbon’s leadership in providing efficient urea technology and tailored, high-performance equipment engineered to meet the evolving needs of fertilizer producers,” said Pejman Djavdan, Stamicarbon’s CEO.
First Phosphate Corp to use Prayon technology
Canadian phosphate project developer First Phosphate Corp has signed a phosphoric acid technology licensing agreement with Prayon.
First Phosphate is the owner and developer of the Bégin-Lamarche property in Saguenay-Lac-St-Jean, Quebec, Canada. This rare anorthosite igneous phosphate rock deposit has the potential to yield high purity phosphate products, enabling the company to target the high-value lithium iron phosphate (LFP) battery market.
Prayon’s license covers the production of 600 tonnes per day (P 2 O 5 ) of merchant-grade phosphoric acid (MGA) – as well as the generation of a high-purity gypsum by-product.
First Phosphate has also selected Ballestra, one of Prayon’s official licensees, to fulfil the project’s engineering services agreement. This covers the front-end engineering design (FEED) and engineering, procurement and construction (EPC) services and their management (EPCM) for the project.
First Phosphate already has a supply agreement in place with Norfalco-Glencore, dating from July 2023, to meet the sulphuric acid requirements of the project’s phosphoric acid plant.
“With these technology, engineering and sulfuric acid supply agreements in place, First Phosphate will have the ability to implement a process to convert approximately 500,000 tonnes per annum of igneous apatite originating from its future mining operations into upwards of 190,000 annual tonnes of value-added phosphoric acid,” said John Passalacqua, First Phosphate’s CEO.
“Through the sale of this license, Prayon gives First Phosphate access to a world-renowned technology and highlights its commitment to transforming a critical, strategic material into high-value-added products, while recycling by-products in a well-established circular economy,” said Prayon’s Benoît Van Massenhove.
KAZAKHSTAN
EuroChem fast-tracks Zhambyl fertilizer complex
EuroChem subsidiary EuroChem Karatau plans to quickly complete a new fertilizer manufacturing complex in Kazakhstan’s Zhambyl region, working to a two-year project timetable. Construction is expected to start in March 2025 and finish in February 2027.
The complex includes an 800,000 t/a capacity sulphuric acid plant, a 260,000 t/a capacity potassium sulphate (SOP) plant, and a 200,000 t/a capacity dicalcium phosphate (DCP) plant. Kazatomprom will offtake about half of EuroChem plant’s sulphuric acid output for use in the solvent extraction of uranium.
