Fertilizer International 522 Sept-Oct 2024
30 September 2024
Fertilizer Industry News Roundup
Fertilizer Industry News
Yara to purchase renewable calcium ammonium nitrate (CAN) from Atome
PARAGUAY
Norway’s Yara International has signed Heads of Terms for the offtake of calcium ammonium nitrate (CAN) from Atome’s low-carbon fertilizer project in Villeta, Paraguay.
This covers the long-term supply of all of the CAN produced by the innovative Paraguayan plant. Yara plans to market and sell this low-carbon fertilizer as part of the YaraBela product line. The 264,000 t/a capacity ‘green’ fertilizer project incorporates a 145MW electrolyser powered from baseload renewable electricity.
Atome expects to signal the go-ahead for the flagship project with a final investment decision (FID) later this year. The project’s front-end engineering and design (FEED) study was completed earlier in 2024. It is scheduled to begin producing and exporting CAN fertilizer from 2027.
“The entry into this strategic relationship with global crop nutrition leader Yara is a significant milestone for Atome on the path to realizing our flagship Villeta Project which will be one of the largest renewable fertilizer production facilities in the Western Hemisphere. Proving significant off-taker interest for our renewable product gives a clear path to the finalization of funding, FID and the commencement of work onsite at Villeta,” said Olivier Mussat, Atome’s CEO.
Off-taker interest will also help accelerate the development of other projects in the pipeline, says Atome, including the company’s 300MW Yguazu project in Paraguay and its 120MW Costa Rica project.
Chrystel Monthean, EVP Americas at Yara, said the company was looking forward to developing a strategic long-term relationship with Atome:
“Decarbonizing the food systems is at the forefront of our strategy. Many of the food companies active in South America have committed to decarbonization targets and our collaboration with them reveals that the decarbonization of the production of fertilizers combined with the use of agronomical best practices can significantly reduce the crops’ carbon footprint.”
She confirmed that fertilizers produced from Villeta will become part of a new portfolio called Yara Climate Choice. These will include fertilizers manufactured using both renewable energy and carbon, capture and storage (see article and interview pages 27-35).
“Signing the Heads of Terms for the Villeta project is a first step to open the opportunity to further expand our portfolio with fertilizers produced with renewable energy in the Americas. The project’s in-land location could open logistical advantages for some of our growing markets in Mercosur,” Monthean said.
Atome also announced in July that it had secured a 30-year term Free Trade Zone (FTZ) contract for Valleta. This provides the project with tax free status and offers long-term fiscal security, says Atome, as well as benefiting the economics of the project. n
SPAIN
Potato chips produced with low-carbon fertilisers now on the market
PepsiCo’s farmers have successfully grown 9,000 tonnes of potatoes on 200 hectares of land, in Álava, La Rioja and Burgos in Spain, using Fertiberia’s Impact Zero fertilizers.
Growing these potatoes using low-carbon fertilizers, as part of a pilot programme between the two companies, is calculated to have cut agricultural emissions by 85,000 kg CO 2 equivalent. The carbon footprint of the harvested potato crop has been reduced by 15 percent in total, the companies said in a statement.
The first Lay’s and Ruffles snacks with reduced emissions have already hit shop shelves in Spain. PepsiCo’s Burgos plant in Spain has now produced 3,000 tonnes of potato chips, thanks to the use of fertilizers produced by Fertiberia with green hydrogen.
Fertiberia’s Impact Zero line (see article on p33) reduces crop CO 2 emission. They also function as enhanced efficiency fertilizers. These help to boost crop yields by improving nutrient uptake and minimising nutrient losses.
“This represents one more step towards achieving our goal of reducing carbon emissions to reach net zero by 2040,” said Christian Cerezo, head of the Agriculture Department at PepsiCo Southwest Europe.
Alfredo Segura, Sales Director at Grupo Fertiberia, said: “The success of the first phase of this partnership confirms that our Impact Zero line meets its goals to reduce emissions and [improve] agronomic efficiency. We will continue working with PepsiCo. to further reduce our carbon footprint with a fertilisation plan which will provide even better results.”
FRANCE
Nextchem secures green fertilizer plant design contract
Nextchem is to carry out a feasibility study and pre-FEED (front-end engineering design) contract for a low-carbon fertilizer plant in France on behalf of the FertigHy consortium.
The planned 500,000 t/a capacity plant will produce nitrogen-based fertilizers using Stamicarbon’s green ammonia and nitric acid technologies. The plant will also incorporate Nextchem’s electrolyser and green hydrogen technology. Both Nextchem and Stamicarbon are part of Italy’s Maire Group.
The FertigHy consortium, established in 2023, is composed of a diverse range of European food, energy, engineering and financial sector companies – namely EIT InnoEnergy, RIC Energy, Maire, Siemens Financial Services, InVivo and Heineken. The partners all share a common interest in bringing about industrial and agricultural decarbonisation.
The consortium’s inaugural plant in France, which is scheduled to start construction in 2027, will produce half a million tonnes of low-carbon nitrogen-based fertilizers annually, using green hydrogen generated by renewable electricity. This avoids up to one million tonnes of CO2 per year that would typically be generated using a conventional nitrogen fertilizer production process such as steam methane reforming (SMR). FertigHy is planning to replicate its low-carbon fertilizer production concept in a number of European countries
AUSTRALIA
SO4 achieves first SOP production
SO4 successfully produced sulphate of potash (SOP) at its Lake Way plant in Western Australia at the end of July. The company, which is owned by Czech-based Sev. en Global Investments, hailed this as a significant milestone in its progress towards full commercial operation.
The Lake Way SOP project, which has been in development for more seven years, has a chequered history. It was originally commissioned in April 2021 and began commercial production in June that year under its previous Australian owner Salt Lake Potash. Sev.en then acquired the project in 2022 after Salt Lake Potash went into administration, having struggled to finance and fully commission the plant.
Sev.en has made significant investments in the production process since 2022. These include the installation of new froth flotation units in the process plant to manage the diverse composition of feedstocks. Using solar evaporation ponds to harvest potassium-rich salts has also been major advance towards sustainable SOP production, according to the company.
Although the process plant is still in the commissioning phase, the production of “Prime High K Standard” SOP (53% K2 O and <1.0% chloride), after years of effort, represents a “significant proof of the operating ability of the system”, Sev.en said.
“This important step confirms the capability of the SO4 team to conceptualise, design, construct, and operate the SOP mining and production facilities and achieve world-class SOP quality parameters. We are proud of the entire team, who have demonstrated a high level of commitment and endurance to reach a key milestone,” said Mark Sykes, Australian country manager for Sev.en Global Investments.
The Lake Way plant has an annual SOP design capacity of more than 200,000 tonnes. Having faced and overcome several complex operational challenges, Sev.en says it is looking forward to bringing the project to full production and becoming a significant Australian and global SOP supplier.
MOROCCO
OCP selects Chemetics sulphuric acid technology
OCP has given notice that it will award Worley Chemetics the contract for three new sulphuric acid plants at the company’s Mzinda Phosphate Hub (MPH) in Morocco. The notice of award is conditional on the subsequent signing of a contract.
As specified by OCP, Worley Chemetics will agree to supply proprietary sulphuric acid technology and equipment alongside detailed engineering, procurement and advisory services. The company will deliver the contract from Canada through its offices in Vancouver and specialised fabrication plant near Toronto.
Worley Chemetics’ sulphuric acid technology provides electrical power which is CO2 emission-free and results in lower stack emissions. Air cooling is also used to conserve and reduce water usage.
Additionally, the company’s proprietary CES-ALPHA™ System recovers low-grade heat as steam for maximum heat recovery.
The MPH project is a part of the OCP’s Green Investment program. This is aiming to increase the company’s annual fertilizer production capacity from 12 million tonnes currently to 20 million tonnes by 2027 using clean energy and non-conventional water sources.
TOGO
FertiStream buys Nutrisource
Global fertilizer trader and distributor FertiStream has signed an agreement to acquire Nutrisource, a Singapore-based holding company with fertilizer assets in Africa. These assets notably include a modern, large-scale fertilizer blending plant in Togo.
The newly-built 20,000 t/a capacity blending plant was designed by EMT, the leading Netherlands-based blending and bagging equipment manufacturer. The fully mechanised and automated plant will produce a range of fertilizer blends, including NPKs with high phosphate content which are in high demand in the region. It offers 60,000 tonnes of raw material storage capacity and 30,000 tonnes of storage for blended fertilizers.
The Togo blending plant, which also includes a quality control laboratory, should be well positioned to provide a local supply of high-quality fertilizers to the West Africa region. It is conveniently located 22 kilometres north of Lome, a deep-water port that can accommodate Supramax vessels. This should enable FertiStream to supply blended NPK fertilizers to neighbouring countries, including Burkina Faso, Ghana, Niger, Benin and Mali.
Dubai-based FertiStream said the purchase of Nutrisource strengthens its footprint in this emerging regional fertilizer market and underlines its overall commitment to African agriculture.
“Our mission is to connect fertilizer producers and buyers worldwide, and with this acquisition, we go even further. Not only will we be able to better contribute to African agriculture by streamlining access to high-quality fertilizer products across nitrogen, phosphorus, and potassium segments, but we will also provide locally produced NPK blends tailored to the specific needs of regional crops and soils,” said Jacques Lubbe, the owner and CEO of FertiStream Holding.
Imane Belrhiti, the head of business development for Africa & Middle East at FertiStream, will become Nutrisource’s chairman. Imane is a seasoned fertilizer professional with over 14 years’ industry experience, including VP level roles at OCP. He will head up a team to ensure that the production of blended NPK fertilizers begins at the Togo plant in the fourth quarter of 2024.
Dubai-based FertiStream achieved a sales volume of more than five million tonnes in the first half of 2024, via an expanding footprint across South and Central America, Southeast Asia, China, Europe, and now Africa. The company is subsidiary of FertiStream Holding Ltd, a company owned and managed by Jacques Lubbe. So far this year, FertiStream has supplied almost 500,000 tonnes of mineral fertilizers to African markets. These include Côte d’Ivoire, Ghana, South Africa, Kenya, Togo, Senegal and Cameroon, and cover a diverse commodity portfolio (AN, AS, Urea, CAN, NOP, MOP, NPKs).
UNITED STATES
Low-carbon fertilizer pilot for corn production
CF Industries and POET have launched a pilot project to reduce the carbon intensity of corn and bioethanol production by using low-carbon ammonia fertilizers. The collaboration is highly symbolic – given that POET is the world’s largest biofuels producer and CF is the largest ammonia producer globally.
Both companies are expecting greater demand for ethanol with a lower carbon intensity in future in order to meet low-carbon fuel standards.
Ammonia is commonly used as a direct application fertilizer by US corn growers. But conventional ammonia production is energy intensive, and therefore a significant contributor to the carbon footprint of harvested corn and the bioethanol produced from this. Producing ethanol from corn grown using low-carbon ammonia instead can reduce its carbon intensity by up to 10 percent, the companies said.
The first applications of low-carbon ammonia to US corn are scheduled for fall this year followed by spring 2025 application. The first low carbon corn crop should therefore be harvested in the fall of next year.
“We are pleased to collaborate with POET on this important step forward in developing a low-carbon ethanol value chain that links low-carbon fertilizers to farmers to ethanol production,” said Bert Frost, executive vice president, sales, supply chain and market development, CF Industries. “Fertilizers manufactured with a lower carbon intensity provide a quantifiable and certifiable method of decarbonizing bioethanol inputs. We look forward to demonstrating these benefits not just for ethanol production but for corn growers as well.”
The two companies intend to jointly develop a low-carbon fertilizer supply chain together. This will track, validate and certify the carbon intensity of low-carbon ammonia manufactured at CF’s Donaldsonville complex, Louisiana, and, subsequently, the ethanol produced at POET’s plants in Bingham Lake, MN, Emmetsburg, IA, Fairmont, NE and North Manchester, IN.
Low-carbon fertilizers will be supplied via retailers to farms that produce corn for POET’s bioethanol plants. There will also be monetisation opportunities for farmers who use these low-carbon fertilizers.
CF Industries recently completed the installation of a 20MW electrolyser at its Donaldsonville complex. Start-up is imminent and the company intends to purchase renewable energy certificates needed for green ammonia production once this unit is up and running. More low-carbon ammonia capacity will be available at Donaldsonville from next year when a large-scale carbon capture and sequestration project commences at the site.
Woodside to acquire Beaumont blue ammonia project
Woodside has entered into a binding agreement to acquire 100 percent of OCI Clean Ammonia Holding BV for an all-cash offer of approximately $2,350 million.
The agreement provides Woodside with ownership of OCI’s under-construction ‘blue’ ammonia project in Beaumont, Texas, and is inclusive of capital expenditure to complete the project’s first phase (Phase 1). The Beaumont project is scheduled to begin producing conventional commodity ammonia from 2025 and low-carbon ammonia from 2026.
Woodside said it would accrue the following benefits from the cash purchase:
- The world’s first ammonia plant paired with auto thermal reforming (ATR) technology and at least 95 percent CO2 capture
- Early-mover advantage in the growing low-carbon ammonia market
- A capital allocation target of 10 percent internal rate of return (IRR)
- Free cash flow generation from 2026 and the generation of earnings per share from 2027
- Capacity to abate 3.2 million t/a CO2 equivalent when fully developed, meeting more than 60 percent of Woodside’s Scope 3 abatement target.
Meg O’Neill, Woodside’s CEO, said the acquisition of OCI Clean Ammonia supports the company’s strategy to benefit from advancing the energy transition:
“This transaction positions Woodside in the growing lower carbon ammonia market. The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels.
“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand.
“This acquisition is a material step towards delivering our Scope 3 investment and abatement targets. Phase 1 has the capacity to abate 1.6 Mtpa of CO2 -e and with the addition of Phase 2 the Project has the capacity to abate 3.2 Mtpa CO2 -e, or over 60 percent of our Scope 3 abatement target.”
OCI’s clean ammonia project in Beaumont, Texas, is located on the US Gulf Coast – and is therefore well-positioned to serve both domestic and international customers. Phase 1 of the project has a design capacity of 1.1 million t/a and is under construction. First ammonia production is due to start next year. Lower carbon ammonia production, which combines production with sequestration by carbon capture and storage (CCS), is scheduled to commence in 2026.
The Beaumont project already has agreements in place for both its feedstocks and CCS capacity. The project’s nitrogen and hydrogen feedstock requirements will be sourced primarily from a feedstock plant owned and operated by Linde. This is currently under construction and due to be completed in early 2026. In the interim, the project will source its feedstock supply from multiple suppliers, including Linde, using existing and available Gulf Coast capacity.
CCS services to the project will be provided to Linde by ExxonMobil and are expected to be available in 2026.
