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Category: Products

Madras seeking approval for greenfield urea plant

Madras Fertilizers Limited (MFL) has submitted a proposal for a new $1.1 billion greenfield ammonia-urea manufacturing project in Chennai, aimed at strengthening domestic fertiliser production and reducing import dependence. The company says that the project is aligned with the government’s broader push for self-reliance in critical agri-inputs and improved food security. The proposed plant will have a capacity of 1.3 million t/a of urea and is currently at the feasibility study stage, but MFL says that its existing 1970s vintage plant is already running at 120% of nameplate capacity, and that a new larger scale facility would see significant improvements in output and operating efficiency.

EU to suspend import duties

The European Commission (EC) officially proposed to suspend, for one year, the most favoured nation (MFN) duties on imports of several key nitrogen-containing fertilizers and inputs for their production, including ammonia and urea, officials said 24 February. The tariff suspension will be implemented for all countries, except Russia and Belarus, through duty-free tariff rate quotas, the Commission noted. Imports beyond these quotas will be subject to standard MFN duties, it added.

Price Trends

Ammonia sentiment was overtaken this week by the escalating Middle East conflict and the effective closure of the Strait of Hormuz, which left vessels unable to enter or exit the Arabian Gulf. With maritime trade frozen, price indications for prompt Middle East business largely stalled. In normal conditions, the sudden removal of Gulf export flows would point to sharply higher prices, particularly given the already-tight global availability and surging urea values, but participants said the absence of tradable cargoes made it difficult to pin down an indication. The immediate knock-on was felt East of Suez, where the supply shock pulled southeast Asian values back up to around $470-480/t f.o.b. Prevailing length in the market has been reportedly absorbed, with buying interest strongest from east Asia and India.

ACME looking at green methanol

Indian renewables developer ACME says that it will partner with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) to set up a green methanol plant in Kendrapada, Odisha state. He proposal is for a 200,000 t/a plant, with ACME taking a stake via its ACME Akaysha Energy subsidiary, part of its green hydrogen business. ACME says that the project forms part of its plans to develop multiple low carbon hydrogen plants and downstream chemical production. The company is planning a large green ammonia facility in Gopalpur through a joint venture with Japan-based IHI Corporation. It is also developing a 2,200 t/d green ammonia project in Paradip with cooperation from the Solar Energy Corporation of India. The output of the facilities will be used both for domestic applications and for export.

Drone strike on Dorogobuzh

A Ukrainian drone attack hit the Dorogobuzh nitrogen fertilizer plant, around 140 km east of the border with Belarus in the western Smolensk region, according to local press reports. At least seven people were killed and another 10 injured, according to Russian authorities. It appears that the nitric acid and ammonium nitrate plants were targeted, as well as facilities involved in the storage and transportation of ammonium nitrate, leading to extensive damage. The strike is part of an ongoing campaign by Ukraine against Russia’s oil, gas and chemical facilities.