Fertilizer Industry News Roundup

Fertilizer Industry News

UNITED KINGDOM

New Yorkshire fertilizer plant

Yara International is to build a major new speciality fertilizer and biostimulant production plant near York.

The new plant will double production capacity for the company’s YaraVita product range and is expected to be operational by the end of 2025. It will also provide Yara with the option to expand production capacity further in future, if required.

Virtually all the plant’s output will be exported to overseas markets.

The new plant will be located close to the company’s existing Pocklington site in Yorkshire in the UK. Pocklington is Yara’s UK head office and its global centre for the development and production of the YaraVita range of foliar and micronutrient fertilizers.

The new production plant will increase Yara’s footprint in the speciality fertilizer segment, one of the fastest growing markets for agricultural inputs. Speciality products are designed to increase crop yields and improve crop quality.

“Sales of YaraVita specialty crop nutrition products and biostimulants have grown fivefold in the last 20 years. These products are formulated to meet the specific needs of crops throughout the growing season and to help them increase their resilience to climate change,” Yara said in a statement.

It added: “Specialty nutrients provided by foliar fertilizers – applied to the leaf or fruit – are just as vital for crop growth and quality as nutrients applied to the soil via traditional mineral fertilizers. Biostimulants for plants are just like taking vitamins for humans. This helps the plants adapt better to climate change and improve nutrient use efficiency,”

The efficacy of YaraVita products has been demonstrated through their use in around 3,000 crop trials. Their application generally resulted in higher crops yields, these typically increasing by 3-8 percent and, in some instances, by as much as 30 percent. Farmers benefit from the resulting yield and crop quality improvements through higher profitability and a greater return on investment.

The global market for speciality fertilizers is projected to grow at nearly seven percent per annum (p.a.) between 2022 and 2027, according to MarketsandMarkets. The biostimulants market is growing even faster – at more than 12 percent p.a. from 2018 to 2030 – DunhamTrimmer estimates.

Testing new fertilizer technologies at Yara’s Pocklington site in the UK.

PHOTO: YARA

“Our specialty crop nutrition products help farmers increase yields and quality without increasing land use. That not only benefits farmers but is also good for the planet,” said Mónica Andrés Enríquez, Yara’s EVP for Europe.

“It’s no wonder that this market is growing exponentially. Amid today’s food security and climate change challenges, it’s more important than ever to feed the world with nutritious food while also protecting the planet,” she added.

“Specialty crop nutrition products are complementary to traditional mineral fertilizers and are crucial for achieving balanced crop nutrition. Although only needed in small amounts, they can make a big difference for farmers and are critical to ensure a lower carbon footprint for food production by increasing yield per unit of land,” said Rejane Souza, Yara’s SVP for global innovation.

Yara has operated in the UK since 1843 under a series of different company names – including Fisons, Norsk Hydro and Hydro Agri – following various mergers and acquisitions.

The Pocklington site has been active since 1967 and currently produces YaraVita products for distribution and sale in over 60 countries. Yara’s uses the UK site as a centre for production, product development, soil/plant analysis and agronomic advice.

EUROPE

European ammonia production struggles to compete

Europe’s domestically-produced ammonia remains uncompetitive with ammonia imports, Argus reported at the start of May, even as European gas prices fell to their lowest level in two years.

In early May, the front-month contracts for natural gas at the Dutch TTF, Europe’s most traded gas hub, closed below e35/ MWh for the first time since July 2021. This contract price has fallen by more than half since the start of the year, standing at around e32/MWh at the end of June, some 90 percent below its all-time high of e319/MWh in August last year.

While these drastic European gas price falls have led to major reductions in domestic ammonia production costs, ammonia import prices have fallen even further, reports Argus, meaning it is still more economical to import ammonia into Europe than to produce it domestically.

European fertilizer production economics have yo-yoed over the last two years. While domestic ammonia production did briefly become competitive with imports earlier this year – having been largely uneconomical during the second-half of 2022 (Fertilizer International 510, p8) – ammonia imports again become cheaper than domestic production from mid-March onwards.

This situation, by favouring imports into Europe, has once again led to regional production curtailments during 2023’s second-quarter. Yara, Europe’s largest ammonia producer, announced it had curtailed 2.8 million t/a of ammonia capacity – equivalent to 58 percent of its European total – as of the end of April. Consequently, around 3.8 million t/a of Yara’s finished fertilizer production was also curtailed as a result.

The Norwegian fertilizer giant made the decision to take its 600,000 t/a capacity Ferrara ammonia plant in Italy offline, just three weeks after bringing it back online following a nine-month shutdown. The company also scheduled a planned maintenance shutdown at its 383,000 t/a capacity Tertre ammonia plant in Belgium in the second quarter.

In comments accompanying its latest financial results, Yara said it will “use its global sourcing and production system to import ammonia to Europe and supply global customers where possible”. Yara has the ability to import ammonia into the region, and therefore limit its production costs when gas prices are high, because its European production plants are located close to ports facilities.

The 2.8 million t/a of ammonia capacity idled by Yara at the end of April equates to an annual cut in gas consumption of just under 2.5 billion m³, calculates Argus. Across Europe, this would translate into a gas demand cut of just over 10 billion m³/a, suggested Argus, if the 42 percent operating rate at Yara’s plants were mirrored by the EU’s entire ammonia production capacity of 19.6 million t/a .

There is only a weak chance of a revival in ammonia demand during the third-quarter of 2023, according to Argus.

“Seasonally low third-quarter demand makes it unlikely that there will be an uptick later this summer. The significant fall in ammonia production costs in recent months has only spurred a small amount of additional demand in Europe, India and China,” Argus said.

Argus, in its recent ammonia outlook, was instead forecasting an oversupplied market this summer, once the 1.3 million t/a capacity Gulf Coast Ammonia plant in Texas begins production in July.

While global fertilizer demand is normally at its lowest in the third-quarter, ammonia buying should pick up around September, said Argus, in readiness for the autumn application season.

UNITED STATES

Extra $400 million for fertilizer production expansion

The United States Department of Agriculture (USDA) has announced a massive funding increase for its Fertilizer Production Expansion Program (FPEP).

“Due to the strong demand for funding, the Commodity Credit Corporation is providing up to $400 million in additional FPEP funding to finance even more projects that will promote competition in agricultural markets,” USDA said in a statement on 23rd June.

USDA had previously allocated $500 million in funding for the FPEP. The programme’s first two funding rounds generated immense interest and were heavily oversubscribed, receiving applications valued at approximately $3 billion from 350 businesses.

“The rapid increase in the cost of critical inputs like fertilizer is only the latest example of why we must invest in strong, domestic agricultural supply chains,” said Tom Vilsck, USDA Secretary. “The FPEP not only increases fertilizer production and improves competition, but also creates new opportunities for American businesses and is one of the many ways that the Biden-Harris Administration is making long-term investments to strengthen our supply chains.”

USDA also announced in June the award of $30 million in grants under round one of the FPEP. These grants will help US farmers in Florida, Iowa, Louisiana, Minnesota, Montana, Texas and Wisconsin access extra supplies of domestically-produced fertilizers.

The seven winners were selected from 21 round one projects shortlisted by USDA in January. Examples include:

• Black’s Valley Ag Supply Inc will build a new dry fertilizer production plant and storage unit in Durand, Wisconsin. The production plant will increase the company’s annual fertilizer production by 33 percent.
• Farmer’s Union Oil Company will expand a fertilizer processing plant in rural Montana. This project will increase the supply of local and affordable fertilizers within a four-county region, while creating several local jobs.
• Progressive Ag Cooperative will construct a dry fertilizer plant that serves cooperative members from northern Iowa and southern Minnesota.

Additionally, USDA invited public comments on 66 projects eligible for grants under the FPEP’s second round. The department will only fund projects if they adhere to federal policies that protect the environment and historic properties. USDA expects to announce the round two FPEP finalists in the coming months, once this public consultation has been concluded.

Stamicarbon secures green ammonia plant contract

Stamicarbon has signed a license agreement with a US customer to develop a basic engineering design package for a 450 tonne per day green ammonia plant.

The plant will produce green ammonia as a feedstock for nitrogen fertilizers. It will incorporate Stami Green Ammonia technology and is expected to start up in 2026.

The name of the customer has not been disclosed but is said to be a prominent North American fertilizer producer.

The Stami Green Ammonia process produces low-carbon ammonia by generating hydrogen from water electrolysis using renewable energy, instead of via conventional steam methane reforming. This is then combined with nitrogen derived from the air.

This innovative technology, by offering a sustainable and competitive alternative to conventional ‘grey’ ammonia production, paves the way for green fertilizer production from renewable energy sources.

“Stami Green Ammonia is at the heart of Stamicarbon’s innovation program, and we are excited to see this technology implemented in several projects around the world,” said Pejman Djavdan, Stamicarbon CEO. “It represents a significant leap forward for the production of green fertilizers based on renewable resources.”

Alessandro Bernini, the CEO of Maire, Stamicarbon’s parent company, said: “Stami Green Ammonia technology, using renewable energy instead of fossil fuels, represents an important step forward in achieving the fertilizer industry’s goals of sustainable, carbon-free solutions. This important milestone further confirms Maire’s role as a leading technology integrator and enabler of the energy transition globally.”

Successful Fort Dodge ammonia plant revamp

Koch Fertilizer has performed a $140 million revamp at its Fort Dodge, Iowa, ammonia plant. The investment is expected to increase annual ammonia production capacity by 85,000 tons, as well as improve the plant’s reliability and its environmental and safety performance.

The revamp was delivered by thyssenkrupp Uhde and Johnson Matthey working in collaboration. A joint team from both companies carried put a project to install the uhde® dual-pressure process upstream of the existing ammonia synthesis loop.

To achieve the additional production capacity, process experts from thyssenkrupp Uhde developed a new cartridge insert for the existing pressure shell. This incorporates the latest process design principles.

Most of the installation work for the revamp was carried out while the existing plant was running. Commissioning of the new uhde® ammonia converter also ran smoothly with no delays, thanks to on-site support from Johnson Matthey.

For this revamp project, a key challenge was increasing ammonia capacity while coping with the very low ammonia synthesis operating pressure (960 psig/66 barg). This was solved by combining Johnson Matthey’s high-performance catalyst KATALCOTM 74-1 with an adapted process design from thyssenkrupp Uhde.

The highly efficient combination of the uhde® dual pressure process and KATALCOTM 74-1 catalyst installed at Fort Dodge is already used elsewhere at some of the world’s largest ammonia plants – these operating with annual production capacities of more than one million tonnes.

“We have worked hand in hand with our customers and our partners at Johnson Matthey to make this happen,” said Thore Lohmann, executive director fertilizer & methanol at thyssenkrupp Uhde. “With our engineering and plant building expertise, we have ensured a smooth integration of the uhde® dual pressure process. The same approach can be applied in many other plants as well.”

EGYPT

EPC contract for Aswan ammonium nitrate plant

KIMA has awarded an engineering, procurement and construction (EPC) contract by for a nitric acid and ammonium nitrate plant to a joint consortium of Tecnimont and Orascom Construction. The new plant will be constructed at KIMA’s existing nitrogen complex in Egypt’s Aswan Governorship.

The scope of work includes project engineering and the supply of materials and equipment, as well as construction activities to be carried out by Orascom Construction. The lump sum, turn-key contract is worth $300 million, with about $220 million of this amount covering Tecnimont’s contribution to the project.

The 600 t/d of nitric acid generated by the new plant will be fully dedicated to the production of 800 t/d of granulated, fertilizer-grade ammonium nitrate. This will be sold domestically to Egyptian farmers and exported to international markets.

This latest nitrogen project follows the successful construction and start-up of a large-scale ammonia and urea plant by Tecnimont and Orascom Construction for KIMA at the same Aswan site in 2020.

Alessandro Bernini, CEO of Maire, Tecnimont’s parent company, said: “We are really honoured to keep on supporting a prominent player such as KIMA in the development of the Egypt’s fertilizer value chain. With this award we further consolidate a long-lasting, fruitful relation and strengthen our industrial footprint in North Africa, thanks to our strong capability in executing EPC projects.”

Completion of the project is currently scheduled for the first half of 2026. The finalisation of the EPC contract is, however, dependent on KIMA successfully securing a financing package.

BULGARIA

Agropolychim to double its fertilizer capacity

Casale have signed an agreement with Agropolychim to double the company’s annual production capacity for ammonium nitrate (AN), calcium ammonium nitrate (CAN) and urea ammonium nitrate (UAN) to 1.5 million tonnes.

Casale and Agropolychim celebrated more than 50 years of successful partnership in May with a new agreement to license and engineer a new nitric acid plant.

PHOTO: CASALE

To achieve this, Casale will license and engineer a new state-of-the-art dual pressure nitric acid plant. The new plant is expected to be commissioned by the end of 2027. It will also maximise the on-site use of green energy.

The expansion project is part of a planned investment of e250 million by Agropolychim in its business over the next five years. The company is seeking to strengthen its strategic position as one of world’s only carbon-neutral fertilizer producers. Agropolychim believes the new investment will place it at the forefront of low-carbon fertilizer and ammonia production in south-eastern Europe.

The latest project marks more than 50 years of successful partnership between Agropolychim and Casale. Agropolychim has been operating a dual pressure nitric acid plant based on the Swiss licensor’s technology since 1973. This is a testament to the reliability, ease of operation and safety of its technology, commented Casale.

In 2004, Agropolychim also pioneered the introduction of N2 O abatement technology in nitric acid production – long before it became the European norm. The example set by Agropolychim has subsequently led to the reduction of millions of tonnes of CO2 emissions (equivalent), ensuring that European plants have since become the world’s ‘cleanest’ nitric acid producers.

Agropolychim’s new nitric acid plant, with its dual pressure technology, sustainable design, negligible emissions and zero effluents, will far exceed current European standards, according to Casale.

Since 2018, Agropolychim has been generating 36 MWh of steam for its process needs from biomass energy. This ‘green’ power source allowed the company to maintain its production at above 100 percent of rated capacity during 2022, despite the gas crisis that caused widespread curtailments elsewhere in Europe (Fertilizer International 510, p8). Biomass energy has also enabled Agropolychim to cut its natural gas consumption by 98 percent over the last five years.

Casale says its nitric acid technology and equipment know-how will maximise the on-site availability of this green energy.

CHINA

UAS granulation plant for Xinjiang Xinji Energy

China Tianchen Engineering Corporation, one of China’s leading engineering and contracting companies, has selected Casale’s fluid bed urea ammonium sulphate (UAS) granulation process for a new project for Xinjiang Xinji Energy and Chemicals Co Ltd.

The pioneering venture – known as the Recycling Economy Joint Chemical EPC project – will construct a UAS plant in Tiemenguan city, Xinjiang, China. It will be the first application of Casale’s UAS granulation process in China.

Casale is providing the project with process design package (PDP) services and a license for its patented UAS granulation process. The company will also supply proprietary equipment needed by the Xinjiang plant.

The flexible design of Casale’s process will allow the new plant to produce UAS with a variable ammonium sulphate content of up to 20 percent. The granulation unit will have a production capacity of 1,800 t/d for UAS when operating at maximum ammonium sulphate content.

“Both parties are pleased to contribute to the development and promotion of fertilizer production diversification in China with the first application of the UAS process in this country,” Casale said in a statement.

The new plant is scheduled to be commissioned by 2025.

Canpotex secures potash supply agreement

Canpotex reached an agreement with China’s potash buying committee in early June for the supply of standard-grade potash. This covers potash shipments to China by the Canadian potash export consortium until the end of December 2023 at a price of $307/t on a cost and freight (cfr) basis.

“China is an important market for Canpotex, and we’re pleased to reach an agreement with China’s potash buying committee,” said Gordon McKenzie, Canpotex president and CEO. “We look forward to continuing our support of food security in China by providing our customers there with a reliable and stable supply of potash as China’s agriculture sector continues to grow.”

The volumes of potash that Canpotex will supply to China this year under the agreement have not been disclosed.

TAIWAN

SABIC Agri-Nutrients ships blue ammonia to Taiwan

SABIC Agri-Nutrients Company (SABIC AN) has sent its first commercial shipment of low-carbon ammonia to the Taiwan Fertilizer Co (TFC).

SABIC AN, a public joint-stock company, is 50.1 percent owned by the Saudi petrochemicals and mining giant SABIC.

Commenting on the 5,000 tonne shipment of ‘blue’ ammonia to Taiwan, Abdulrahman Shamsaddin, the CEO of SABIC AN, said, “The shipment of low-carbon ammonia reflects our commitment to delivering low-carbon solutions to our customers and helping them achieve their net-zero targets in various areas such as clean energy transitions and low carbon chemicals/fertilizer solutions. We have already delivered such shipments to several markets such as Japan, South Korea, and India in line with our aspirations to become a leading player in the low-carbon ammonia market.”

Dr Huang Yao Hsing, the CEO of the Taiwan Fertilizer Co, added: “TFC has been devoting itself to all possible solutions to achieve the ultimate goal of net zero for years and the arrival of this low-carbon ammonia shipment is a significant milestone to be recorded. By supplying it to the downstream industries including fertilizers and chemicals, low-carbon ammonia presents one of the best solutions to pursue carbon neutrality and as the leading supplier of ammonia in Taiwan, we have the responsibility to introduce it to the market.”