Tag: EU

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.

Achema says that it plans to “temporarily” suspend ammonia production at its site at Jonava from May 15th, due to the volatility of natural gas prices and competition from cheaper foreign imports. It currently plans to resume production in 3Q 2025. The facility has been operating at reduced capacity since 2021, and Lithuanian lawmakers have discussed converting the site to explosive grade ammonium nitrate production as part of a European rearmament programme.

Urea markets are well supplied at present in spite of Chinese export restrictions, but face volatility due to a number of trade barriers and other non-market pressures.

Global gas demand has returned to growth after the supply shock of 2022-23, but geopolitical tensions and short supply in LNG markets.

The European Commission (EC) says it has begun tracking European imports of certain ethylene and ammonia products, to allow it to react quickly to level the playing field if the monitoring points to a surge of imports causing or threatening to cause injury to the EU industry. This surveillance has been put in place in response to evidence of a significant and potentially injurious increase in the EU market share of imports of the chemicals. It covers imports of copolymers of ethylene and alpha olefin, urea containing more than 45% (by weight) of nitrogen, and ammonium sulphate from all countries, and should remain in place for a period of three years.

Tecnicas Reunidas and Siemens Energy have been awarded the contract to carry out front-end engineering design (FEED) for a major green methanol project in La Robla, Spain. The consortium will work on the project for Spanish developer Reolum, part of a partnership that says it is building the largest green methanol plant in Europe. The La Robla Nueva Energia facility will combine biogenic CO2 from a co-located biomass-based cogeneration plant with green hydrogen to produce 140,000 t/a of low carbon methanol. Tecnicas Reunidas will focus on the biogenic carbon capture and methanol production units, while Siemens Energy will handle the renewable hydrogen unit. Johnson Matthey has been selected to supply its eMERALD methanol technology, while Mitsubishi Heavy Industries will license it CO2 capture technology for the project.

Repsol has approved a historic €800 million investment in Ecoplanta, a pioneering project in Europe to transform urban waste into renewable fuels and circular products, adding a solution for reducing CO2 emissions in the transport sector, while at the same time promoting the circular economy. Located in Tarragona, the facility will be the first in Europe to produce methanol from municipal waste via a gasification process developed by Enerkem - a technology company in which Repsol is a partner – using waste that would otherwise end up in landfills or be incinerated.

The European Commission is proposing to place tariffs on EU fertilizer imports from Russia and Belarus.

As a tumultuous 2024 draws to a close, CRU’s fertilizer team to make a few predictions for the year ahead.