
Market Outlook
• Ammonia prices look well insulated against any declines over the immediate term, though the upside may be more limited in some regions than others.
• Ammonia prices look well insulated against any declines over the immediate term, though the upside may be more limited in some regions than others.
Ammonia prices in both hemispheres had levelled out by the end of August, with the exception of a few marginal upticks in some regions on the basis of the latest supply-demand dynamics. All eyes are now on September’s Tampa settlement, which should spell out the extent of the upside pressure set to emerge over the coming weeks.
Jilin Electric Power says that it has commissioned one of the world’s largest green hydrogen and ammonia plants in Jilin Province. Jilin says that this is the world’s largest operating green ammonia plant, with a capacity of up to 32,000 t/a of green hydrogen and 180,000 t/a of green ammonia; the largest combined PEM and alkaline electrolyser system, combining 196 MW of alkaline electrolysis and 52 MW of PEM electrolysis, respectively; and the world’s largest block of solid-state hydrogen storage - 48,000 Nm3. The plant is fed by 800 MW of installed renewable power. The green ammonia is EU-certified under low-carbon fuel standards, and offtake agreements are in place with companies located in Europe, Japan and South Korea.
KBR says that it has been awarded a front-end engineering design (FEED) contract for the development of an ammonia and urea production plant by KAR Electrical Power Production Trading FZE (KEPPT) in Basra, Iraq. Under the terms of the contract, KBR will provide FEED for a proposed 2,300 t/d ammonia production facility and 3,850 t/d urea unit. The design will be executed using KBR’s proprietary ammonia technology.
Saudi power group ACWA Power has awarded a front-end engineering design (FEED) contract to a consortium of Spanish engineering firm Tecnicas Reunidas and Sinopec Guangzhou Engineering for the development of a large green hydrogen and ammonia project in Yanbu. The project would include 4 GW of electrolysis capacity, enabling the production of 400,000 t/a of green hydrogen, which will then be converted into green ammonia for export. The plant’s scope also includes water desalination infrastructure and an export terminal to support global distribution, though renewable generation assets are excluded from the current design phase.
Yara has applied for a new environmental permit in order to be able to import 275,000 t/a of ammonia by rail to its site at Tertre in the Saint-Ghislain municipality. The permit will cover ammonia to continue to operate downstream nitric acid and ammonium nitrate production at Tertre following the closure of the site’s 400,000 t/a ammonia plant. A public inquiry into the permit is expected to be completed in early September 2025. Yara says that train traffic to the site will increase to around 5 trains per week if the permit is granted.
Shipping classification society ClassNK has formed a consortium with IHI Corporation, JFE Steel, Tohoku University, and Institute of Science Tokyo to participate in Japan’s Feasibility Study Program on Energy and New Environmental Technology. The consortium will promote the development of stress corrosion cracking (SCC) probability evaluation tools for fuel ammonia storage tanks and transportation equipment. Initially, the consortium will conduct a detailed study of the SCC mechanism involved in steel cracking due to the combined effects of mechanical stress and corrosion caused by liquid ammonia. Thereafter, the consortium plans to develop tools for easily and accurately assessing SCC probability. Finally, opinions will be solicited from stakeholders to formulate risk-based maintenance procedures for fuel ammonia storage and transportation facilities, and marine fuel tanks ultimately to promote the expanded use of fuel ammonia.
KBR been awarded a front-end engineering design (FEED) contract by Iraq's KAR Electrical Power Production Trading (KEPPT).
Russia’s Ammoni JSC has received funding approval for the Ammonia-2 plant at its Mendeleevsk complex in Tatarstan.
The ammonia train at the under-construction Beaumont ammonia project in Texas is now 95% complete, according to owner Woodside.