Section: CRUNS Industry News

Building on its long experience and leading position within global ammonia production, logistics and trade, Yara says that it aims to capture opportunities in green shipping, agriculture and industrial applications; a market expected to grow by 60% over the next two decades. A major first step includes plans to fully electrify its ammonia plant at Porsgrunn, Norway, with the potential to cut 800,000 t/a of CO 2 , equivalent to the emissions from 300,000 passenger cars.

Johnson Matthey and KBR have announced that they have signed a global strategic alliance agreement to license a new ammonia-methanol co-production process that combines the companies’ ammonia and methanol process technologies. The companies say that the co-production process makes the most of synergies between the two technologies, maximising savings while offering the highest levels of safety, flexibility and reliability.

The US Environmental Protection Agency (EPA) and the US Department of Agriculture (USDA) have announced the ‘Next Gen Fertilizer Challenge’, a joint EPA-USDA partnership and competition to advance agricultural sustainability in the United States. The competition includes two challenges that seek proposals for new and existing fertilizer technologies to maintain or improve crop yields while reducing the impacts of fertilizers on the environment.

Spanish fertilizer producer Fertiberia is teaming up with energy firm Iberdrola to build Europe’s largest plant for generating green hydrogen for industrial use – in this case ammonia production. The 100MW solar plant and accompanying 20 MWh lithium-ion battery system and 20MW electrolytic hydrogen production system will be built at a cost of $174 million, and electrolyse water to produce 720 t/a of hydrogen. When fed into Fertiberia’s existing ammonia plant at Puertollano, 250km south of Madrid, the hydrogen will allow a 10% reduction in natural gas use by the plant, saving the company 39,000 t/a in annual CO 2 emissions. Start-up is planned for 2021. Fertiberia will also use electrolysis-generated oxygen as a raw material for nitric acid, which is used to produce ammonium nitrate at the site.

Johnson Matthey (JM) has been selected by China’s Ningxia Baofeng Energy Group as licensor for a third methanol synthesis plant at their coal to olefins complex near Yinchuan in Ningxia province. With a planned capacity of 7,200 t/d (2.4 million t/a), the unit will be the largest single train methanol plant in the world once completed.

Maire Tecnimont subsidiary Tecnimont SpA has finalised its $350 million EPC contract with Egypt Hydrocarbon Corp. (EHC) for the construction of a new ammonia plant at Ain Sokhna. The preliminary contract was announced in September last year. The contract for the plant, which will produce 1,320 t/d of ammonia, also includes extensive utilities and offsite facilities. Project completion is scheduled for 36 months from the effective contract date, which will be triggered by financial closure of the project. Project finance is being arranged by the Italian export credit agency SACE and the US EXIM Bank. The ammonia will be used to feed an ammonium nitrate plant, already existing and in operation in the same industrial facility, also owned by EHC.

Air Products and Haldor Topsoe have signed a global alliance agreement. Under the terms of the agreement the two companies will use their combined market network for developing potential projects and the combination of their expertise on large-scale ammonia, methanol and/or dimethyl ether (DME) plants to be developed and built globally. It gives Air Products access to Topsoe’s technology licenses and the supply of engineering design, equipment, high-performance catalysts and technical services for ammonia, methanol and DME plants that are built, owned and operated by Air Products. It also allows for the integration of Topsoe’s technology into many Air Products’ technologies including gasification of various feedstocks, and synthesis gas processes.

Tecnimont SpA has signed an EPC contract worth approximately e200 million with Gemlik Gübre Sanayii Anonim Sirketi for the construction of a new urea and urea ammonium nitrate (UAN) solutions plant at Gemlik, 125 km south of Istanbul. The plant will have a capacity of 1,640 t/d of granular urea and 500 t/d of UAN, and will be based on Stamicarbon urea technology, a fully owned subsidiary of the Maire Tecnimont group. The scope of work includes engineering, supply of all equipment and materials and construction and erection works. Project completion is planned within about three years of the contract beginning.

Methanex has said that, in light of the uncertainty in the global economy from the Covid-19 pandemic, it will defer approximately $500 million of previously announced capital spending on its $1.4 billion Geismar 3 methanol project for up to 18 months. Geismar 3, which is intended to eventually produce 1.8 million t/a of methanol, will be placed on temporary “care and maintenance” for up to 18 months, enabling the company to complete the project when market conditions improve. Methanex says it will spend $100 million in Q1 2020 and a further $200 million from April 1, 2020 to September 30, 2021 on the project, the majority of which is spending that occurred or was committed during Q1 2020. This is approximately $500 million lower than the $800 million that was expected to be spent over that same period. Construction activity and procurement of non-critical equipment and bulk materials will be suspended until market conditions allow the Geismar 3 project to restart.

The UK’s Department for Business, Energy and Industrial Strategy has awarded £28 million ($36 million) of government funding to five demonstration projects for low carbon hydrogen production, as part of a larger stimulus package to cut industrial carbon emissions. The projects targeted for funding include: