
Market Outlook
The market is anticipated to correct lower throughout the rest of the first quarter. Once a clearer picture over seasonal fertilizer demand in Europe emerges, this could stabilise downward momentum.
The market is anticipated to correct lower throughout the rest of the first quarter. Once a clearer picture over seasonal fertilizer demand in Europe emerges, this could stabilise downward momentum.
Fulcrum BioEnergy says that it has successfully produced low-carbon synthetic crude oil using landfill waste as a feedstock at its Sierra BioFuels Plant, the world’s first commercial-scale landfill waste-to-fuels plant. Located outside of Reno, Nevada, Sierra will produce approximately 11 million gallons of renewable, low-carbon transportation fuels each year from approximately 175,000 t/a of landfill waste.
Air Liquide presents the results of an internal study to identify preferred natural gas-based plant configurations at a methanol capacity of 250 t/d. Delivering small capacity plants requires a focus on the total cost of ownership (TCO) for the economics to be successful, in addition to the CO 2 footprint of the operation. As found by this study, SMR concepts are naturally power balanced for standalone greenfield operations and show no particular advantage for power import in a brownfield setting. POX and ATR cases are greatly improved and even advantaged in a brownfield setting compared to SMR when shifting from power balance to power import cases.
Advanced Methanol Amsterdam (AMA) is a production facility, that will be realised in the Port of Amsterdam's Biopark, which is destined to produce advanced methanol that meets the European renewable energy directive (RED) requirements. Once completed, AMA will be the flagship production site for GIDynamics and GIDARA Energy and for its High Temperature Winkler (HTW ® ) gasification technology. AMA will also be the first of its kind green methanol unit designed by Casale.
Market Insight courtesy of Argus Media
Fertilizers are always political to some extent, sitting as they do at the intersection of key commodities such as oil and gas on the one hand and food on the other. Markets for major nitrogen derivatives have often been distorted by political decisions to achieve self-sufficiency in fertilizer production, such as in, e.g. China or India. But over the past couple of months ammonia has found itself particularly in the political spotlight, in the context of the ongoing conflict in Ukraine, which continues to shape and indeed re-shape global commodity markets.
Topsoe has agreed to supply an initial 500 MW of industrial-scale, solid oxide electrolyser cells (SOEC) to First Ammonia, a US company aiming to produce green ammonia for transportation fuel, power storage and generation, as well as fertilizer, at sites in northern Germany and the southwestern United States. The companies envisage that over the lifetime of the agreement some 5 GW of SOEC electrolysers will be supplied, potentially replacing almost 5 bcm of natural gas and eliminating the emission of 13 million t/a of CO 2 emissions. The facility to manufacture the electrolyser cells will be built in Herning, Denmark, and has recently received a final investment decisions from Topsoe’s board.
The ammonia market appears to be oversupplied as of the end of October 2022, with a ready availability of spot cargoes. Coupled with increased availability from European producers due to an easing of gas prices, this seemed to indicate bearish market sentiment for the immediate future.
Casale has developed a range of methanol-ammonia coproduction processes to match different requirements according to product capacity.
The curtailment of ammonia production in Europe and reduction in export supply from Russia has led to an unprecedented year for the merchant ammonia market.