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Tag: EU

Is the world ready for CBAM?

At the end of this year, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will move from its transitional phase into its ‘definitive’ phase, whereby the carbon costs of goods entering the EU will need to be priced in. CBAM requires suppliers to calculate the carbon emissions of their fertilizer (and other, e.g. steel) products, including indirect emissions, for example from electricity consumed in the process, and emissions of precursor or raw materials. They will then need to purchase CBAM certificates to cover embedded emissions above the established free allowance benchmark rates determined by the European Commission: 1.57 tonnes CO2e/tonne ammonia and 0.23 tCO2e/t nitric acid.

EIB loan agreed for Villeta project

ATOME says that the European Investment Bank (EIB), the lending arm of the European Union, has approved financing in-principle of up to $135 million for the company’s flagship Villeta Project. EIB is one of ATOME’s senior debt providers for Villeta and the announcement follows the Green Climate Fund approval earlier this month. Details of the financing will be finalised in early course, following closing of the debt package with the consortium of leading international development finance institutions. Based on the progress with financing, ATOME is projecting a final investment decision by the end of September 2025.

Liquidators to sell Interagro plants

Two fertilizer plants, formerly part of the Interagro Group, are being offered for sale by the liquidator, Sierra Quadrant. The factories, Ga-Pro-Co in Săvinești and Donau Chem at Turnu Măgurele, are available for direct negotiation starting at €17.8 million plus VAT and €18 million plus VAT, according to the liquidator, with a public auction to be held in September. Assets available include plants for the production of ammonia, urea, nitric acid, ammonium nitrate and liquid fertilisers, as well as transportation infrastructure for both road and rail.

OCP certifies low cadmium phosphates

OCP Nutricrops has received a certification that its customised phosphate fertilizers, developed specifically for the European market, meet the EU’s stringent low cadmium content requirements. The certified fertilizers contain less than 20 milligrams of cadmium per kilogram of phosphorus pentoxide (P2 O5 ), far below the European Union’s regulatory ceiling of 60 mg/kg. OCP Nutricrops says that it plans to expand this low-cadmium benchmark across all its fertilizer products worldwide by the end of 2025. Reducing cadmium in agricultural fertilizers is considered a public health priority across Europe. This initiative is closely aligned with EU goals to mitigate food-related health risks and safeguard ecosystems from harmful contaminants.

Offtake deal for Barents Blue project

Horisont Energi says that it has secured a non-binding offtake deal with “a European energy group” for ammonia sales from its Barents Blue clean ammonia plant at Markoppnes in northern Norway. Sales and purchase agreements are targeted for completion in 2026. Horisont is pressing ahead with the 1 million t/a project in spite of the withdrawal of project partner Fertiberia, and the exit of Polish company Orlen from a related CCS project. Front end engineering and design work has not yet been completed, but the project has been working on commercial agreements for the supply of gas, offtake of clean ammonia and storage of CO2 . Carbon capture is projected to be above 99%, and it is expected to be the most energy-efficient clean ammonia plant in the world. Barents Blue is supported by a $48 million grant as part of the EU IPCEI hydrogen program, Hy2Use. The project is targeting a final investment decision (FID) in 2026 and estimated production start in 2029/2030.