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Nitrogen+Syngas 394 Mar-Apr 2025

19 March 2025

HyLion looking to produce renewable methanol in Scotland

 

HyLion looking to produce renewable methanol in Scotland

The partners in the HyLion network are planning to produce low carbon hydrogen from renewable energy in Scotland and convert it into methanol for use as a low carbon fuel in the shipping, aviation, and motorsport sectors in the UK and Europe. The HyLion project partners include ARUP, McPhy Energy, Bosch, E.On, CO2 Recovery Ltd, Mareneco Ltd, Cadeler A/S, and P1 Fuels. Management and IT consultancy MHP is providing strategic and operational advice on the development and digitalisation of an efficient supply chain. Around 9,000 t/a of hydrogen and around 45,000 t/a of green methanol are planned in the initial pilot plant, which will use 63,000 t/a of biogenic CO2 from E.On’s biomass power plant at Lockerbie and from local whisky distilleries for the production of methanol. Hydrogen will come from an 80 MW electrolyser supplied by McPhy Energy, using local wind energy, with pure water being supplied using Bosch technology. P1 Fuels’ technology will convert e-methanol into an e-fuel that fits seamlessly into the existing fuel infrastructure and offers a decarbonisation solution for the automotive industry, international and national racing series, and light aircraft, for example. Another customer for the e-methanol will be the shipping company Cadeler A/S. The plant is expected to start production at the beginning of 2028.

“CO2-reduced hydrogen plays an essential role in achieving the climate targets. The stricter CO2 reduction targets and the increasing political decisions to replace fossil fuels will significantly increase the demand for e-methanol in the future. The abundant wind resources in Northern Europe, especially in Scotland, provide an ideal basis for scalable production of CO2-reduced hydrogen and derivatives,” explains Dr. Sylvia Trage, Partner at MHP and responsible for Supply Chain Excellence.

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MOL co-produces HVO and SAF

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Grupa Azoty to produce sulphur enhanced fertilizer

Grupa Azoty SA is set to begin producing its new multi-component fertilizer – POLIFOSKA Multi S –at its Police site in Poland. This launch marks the latest addition to the company’s fertilizer portfolio, joining the likes of megAN (a high-granule ammonium nitrate fertilizer), RSM OPTIMA (a nitrate-urea solution with a distinctive light blue colour for easy product origin identification), and eNpluS (an ammonium fertilizer enriched with sulphur and calcium). POLIFOSKA Multi-S is designed with readily soluble and plant-available nutrients: 7% nitrogen in ammoniacal form, 10% phosphorus, 20% potassium, 5% calcium, 1% magnesium, and 23% sulphur in sulphate form. It is also enriched with silicon. Thanks to its excellent water solubility, the nutrients are rapidly delivered to the roots, supporting plant development from the very start of the growing season.

Price Trends

Global sulphur benchmarks rallied at the end of February, underpinned by strong demand in Indonesia and stock drawdowns in China as fresh European sanctions on Russia targeted the port of Ust-Luga. Chinese buyers paid up to $225t/t c.fr for a cargo, with unconfirmed rumours of business at even higher levels. However, delivered prices still lag domestic port spot prices in China, which are now assessed at a delivered-price equivalent of around $242/t c.fr. China’s delivered sulphur price jumped significantly as port inventories declined, and new arrivals were limited. Only two new cargoes were reported in the last week of February, one from a mainstream source into southern China at $205/t c.fr, and the second at $225/t c.fr by a phosphate producer for the Yangtze River. The sulphur port spot transaction price is reported at around 2,0402,050 yuan/t FCA ($281-283/t), with the low-end up $26/t and high-end up $25/t compared with previous settlements. That port price indicates delivered values at around $242/t c.fr, which is $17/t higher than the import price on the Yangtze. Phosphate producers need to purchase more sulphur to meet the increased buying activity in northeastern market and the improving spring application season demand in northern China. Still, market sales availability is limited, as most port tonnes are held by traders instead of end-users, while traders are selling limited quantities now to push prices higher. Chinese total port inventory dropped to 1.89 million tonnes by 26 February 2025. The quantity at Yangtze river ports declined 59,000 tonnes to 633,000 tonnes, while Dafeng port inventory decreased 20,000 tonnes to 450,000 tonnes.