Tag: Ammonia

This troubleshooting case study describes an incident at one of the sulphur recovery units at BPCL Kochi Refinery, India. Following a maintenance turnaround of the unit in 2022, unusually high H2 S and SO2 were observed at the outlet of the Claus section. This created an additional load on the tail gas reactor, which led to frequent plugging in the quench column and frequent outages in the tail gas unit, creating environmental and reliability issues in the unit. The activities to identify the root cause of the incident are described and the measures to solve the problem are shared.

Veolia says that its subsidiary Veolia North America has signed an agreement for the divestment of Veolia North America Regeneration Services, which includes its sulphuric acid and hydrofluoric acid regeneration activities for refineries, to private equity firm American Industrial Partners for $620 million. These activities represented revenues of around $350 million in 2023. The financial closure of the transaction is expected soon. Veolia’s Sulphuric Acid Regeneration Business includes its sulphuric acid and potassium hydroxide regeneration, as well as sulphur gas recovery, and sulphur-based products production businesses.

Intermittent supply from China due to export restrictions and US duty changes have kept markets guessing over the past couple of years, and there is no sign of that changing.

A look at the safety challenges that face developers of ammonia-powered shipping vessels before it can become used more widely as a low carbon fuel.

Ammonia markets were quiet in June, though both CF Industries and Grupa Azoty were reported to be looking for July tonnes and the enquiry will test how tight the market is going forward. Algeria has traded in the $400-405/t f.o.b. range, suggesting c.fr values in Europe might be slightly higher at $450-460/t c.fr. Supply from Algeria has been and continues to be somewhat restricted because of constraints caused by the hot weather. Gas supply however is easing in Egypt and further ammonia exports should emerge shortly.

Prices in the Eastern Hemisphere, whilst still flat-to-firm, do not appear as supported as they have been over the past month, whilst indexes. There are still no signs of softening in the Far East although demand remains underwhelming and supply improving. While production in Indonesia is said to be back up and running, traders do not expect any spot cargo to emerge in July other than possibly some small part cargoes. August could see spot offers.

Hanwha Corporation and INEOS Nitriles have announced their intention to collaborate in a study for a new low-carbon ammonia facility with carbon sequestration in the USA, with a capacity of more than 1 million tonnes per annum. The location of the plant is yet to be determined. The two companies have agreed heads of terms, under which Hanwha and INEOS will jointly explore the feasibility of a facility to meet the growing global demand for ammonia with low-carbon emissions. A final investment decision is planned for 2026 with planned commercial operation in 2030.

A review of the current slate of plans for green and blue ammonia production.

With all of the focus on low carbon ammonia and methanol developments, one could occasionally be forgiven for forgetting that most of the syngas industry relies upon natural gas as a feedstock, and that gas pricing and availability remain the key determinants of profitability for producers. As our article this issue discusses, even low carbon ammonia is likely to be largely based on natural gas, albeit with carbon capture and storage, at least for the remainder of this decade.

Market as of 20th June 2024. Urea: Prices remain stable while the market awaits clear price direction on whether to hold current f.o.b. levels or to push higher.