Tag: Contract

Yara International is to supply fossil-free fertilizers to El Parque Papas, Argentina’s largest potato grower, in 2023.

Yara International has approved a project to partly convert its Pilbara plant near Karratha in Western Australia to green ammonia production.

In increasingly volatile times for commodity markets, companies up and down the fertilizer supply chain are being left financially exposed to price fluctuations. Alison Coughlin and Tom Crane of CME Group explain how derivatives allow fertilizer market participants to protect themselves from the risk of adverse price movements.

India’s new batch of urea plants are coming on-stream or nearing completion, but can the country regain the self-sufficiency in urea production that it enjoyed in the 1990s?

Gidara Energy has agreed with the Port of Rotterdam to develop a new waste to methanol facility in the Netherlands: Advanced Methanol Rotterdam (AMR). Gidara will duplicate its Advanced Methanol Amsterdam project as a template for AMR, using Gidara’s patented high temperature Winkler (HTW® ) technology, which converts nonrecyclable waste to renewable fuels. This technology has been used commercially in four other waste to syngas production facilities. AMR will convert around 180,000 t/a of non-recyclable waste into 90,000 t/a of methanol, while capturing all waste streams for use; CO2 will be captured and led to local greenhouses; bottom product residue will be used for cement production; and other streams like ammonia and salts will be sold and put to use as feed stock for other industries and road salt respectively, creating a fully circular concept. The facility is scheduled to start detail engineering and construction in the first half of 2023, when a permit is received, and start production of renewable methanol in 2025.

Casale has acquired Hong Kong-based Green Granulation Ltd (GGL), and its proprietary technologies for the design and construction of urea and calcium ammonium nitrate (CAN) granulation systems. Casale says that the takeover is part of a broader strategy aimed at strengthening its leading position in the nitrogen market by leveraging the widest integrated portfolio of efficient technologies, enabling the company to offer a ‘one stop shop’ for the entire production cycle of nitrogen-based fertilizers, from raw materials to final products. GGL’s addition to the Casale group includes the Cold Recycle Granulation process, an advanced fluidised bed technology designed to accept a lower concentration of urea feed melt (ca 96% urea and biuret), as well as a proprietary design for both granulator and scrubber, a team of experts and qualified technicians, and considerable experience in several industrial references. The CRG design has a horizontal layout, leading to lower structural costs and higher efficiency, as well as lower total investment costs and power consumption, lower power consumption and simplified operation, and higher operational flexibility in urea and CAN granulation.

Belarus sanctions, freight costs and strong demand are pushing MOP pricing to new heights, says Andy Hemphill, senior editor for potash and sulphuric acid at ICIS Fertilizers.

Yara and Lantmännen have signed an agreement to bring fossil-free mineral fertilizers to market.

Rapidly escalating natural gas prices forced plant closures across Europe during September. Worst affected was the UK, where a fire at a cross-Channel electricity cable and low output from wind energy has, combined with low domestic storage capacity led to a surge in demand for gas for power stations and wholesale gas prices reached a record 350 pence per therm (equivalent to $46/ MMBtu) in October. On September 15th, CF Industries announced that it was halting operations at both its Billingham and Ince fertilizer plans due to high gas prices. Although ammonia prices have also risen, they have not kept pace with gas price rises, and there is a limit to what farmers could be expected to pay. CF CEO Anthony Will said: “$900 is the gas cost in a tonne of ammonia and the last trade in the ammonia market that was done was $700 a tonne”. As these plants supply most of the UK’s carbon dioxide for food and drink manufacture, the government said it would provide “limited financial support” to keep the Billingham plant operational, and that plant re-started on September 21st. Meanwhile, BASF closed its Antwerp and Ludwigshafen plants in Belgium and Germany due to what the company called “extremely challenging” economics. Fertiberia ceased production at its Palos de la Frontera site in Spain, and Puertellano remained down for scheduled maintenance. Yara shut 40% of its European ammonia production in September, and OCI partially closed its Geleen plant in the Netherlands. Achema in Lithuania decided against restarting its ammonia plant following maintenance in August, and OPZ in Ukraine shut one ammonia line at Odessa, with Ostchem and DniproAzot likely to follow. Borealis in Austria also reduced production.

China’s private sector Shenghong Petrochemical refining complex is targeting a startup in late November, following the receipt of its first cargo of crude in October. The greenfield refining complex in the eastern Lianyungang petrochemical zone has a capacity of 16 million t/a, including a 320,000 bbl/d crude unit – the largest single stream CDU in China – and a 76,000 bbl/d naphtha reformer. Product capacities include 56,000 bbl/d of gasoline, 41,000 bbl/d of diesel and 32,000 bbl/d of jet fuel. Construction began in mid-2019, delayed from 2018 by late approval of its environmental impact assessment, but has been achieved within two months of the scheduled completion date in spite of the coronavirus pandemic. Shenghong Petrochemical is owned by Eastern Shenghong, a producer of petrochemical products and chemical fibres.