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Category: Agricultural

Cherepovets hit by drone strikes; phosphate impact unclear

Multiple drone strikes have hit the industrial city of Cherepovets in Russia's Vologda Oblast region, according to Russian news agency TASS. The area contains PhosAgro's largest phosphate fertilizer production site. Cherepovets has a production capacity of around 700,000 t/a NPK and around 814,000 t/year DAP/MAP, according to CRU data, making it the largest phosphate fertilizer production site across Europe and the CIS. The site also contains several sulphuric acid plants with a combined capacity of 4.5 million t/a, making it Russia's largest production hub for the acid. This entire volume is consumed domestically.

CRU Phosphates+Potash conference focuses on sulphur

CRU’s Phosphates+Potash Expoconference was held in Paris in mid-April, with the Iran crisis uppermost in everyone’s mind. Margins are under pressure, sulphur has become a strategic constraint, and the phosphates investment pipeline is thin. CRU Principal Consultant Humphrey Knight examined the fallout from the closure of the Strait of Hormuz, noting that fertilizers have been hit harder than most bulk commodities. A large share of exportable sulphur and traded urea normally originates in, or passes through, Gulf producers. The effective closure of the strait has squeezed the traded part of these markets, where international prices are set, and pushed benchmarks up sharply. The global phosphate market is structurally tight, and the combination of Chinese export policy and Middle East logistics has pushed the traded segment into a much more fragile state.

Australia fast-tracks Murchison green ammonia project

Australia’s federal government has selected the Murchison Green Hydrogen project in Western Australia as one of four pilot projects under its newly launched Investor Front Door initiative, a scheme designed to streamline regulatory approvals and fast-track major projects deemed to be in the national interest, the government announced 9 April. The Murchison project, which will use wind and solar energy to produce large-scale green ammonia, is intended to serve as a model for commercial-scale green hydrogen development in Australia and to generate green export opportunities to markets in Asia and Europe. Murchison, being developed by Copenhagen Infrastructure Partners’ (CIP), is expected to have a total production capacity of roughly 1.3 million t/a of green ammonia. The first phase of operations is due to begin in 2029.

CF Industries delays turnaround to ease supply concerns

CF Industries has delayed a planned multi-week maintenance turnaround at its Donaldsonville, Louisiana complex, the world’s largest ammonia production facility, in response to the supply disruption caused by the Strait of Hormuz closure, the producer announced in a press release. The company said the decision is expected to make approximately 100,000 tonnes of additional granular urea available to US customers during the spring application season. CF Industries added that it is also prioritising new sales to domestic customers over higher-priced export orders for the duration of the spring planting season.

SABIC secures feedstock for new plants

SABIC Agri-Nutrients Company says that it has received approval from the Saudi Ministry of Energy to allocate feedstock required for the construction of its seventh plant in Jubail Industrial City. The new facility will produce approximately 1.2 million t/a of ammonia and 2.6 million t/a of urea, increasing the company’s urea production capacity from 4.8 million t/a to 7.4 million t/a; a 54% increase. This is expected to strengthen its position as one of the world’s largest producers and exporters of nitrogen-based nutrients, in line with its 2040 growth strategy.