Tag: Fertiberia

T he high-price environment for fertilizers and other commodities, including natural gas, is having very different consequences globally.

The Argus Fertilizer Europe Conference returns as an in-person event at the Hotel RIU Plaza España, Madrid, Spain, 17-19 October 2022.

The refurbishment and modernisation of fertilizer plants offers the opportunity to reduce operating costs, raise production capacity, improve energy efficiency and cut emissions.

The phosphate fertilizer industry is turning to production methods that are able to consume low-grade phosphate rock and/ or generate pure gypsum as a by-product. Gypsum-free processes, and technologies that capture phosphorus from waste streams, are also on the rise.

Liquid fertilizers are emerging as a high growth, multibillion dollar market. Their growing use is linked to trends such as no-till farming and the greater adoption of precision agriculture. Leading producers and products are highlighted.

High feedstock prices and regulatory burdens continue to put pressure on European nitrogen producers to innovate.

Recent spikes in natural gas prices, particularly in Europe, have highlighted the tightness of natural gas markets around the world going into the northern hemisphere winter. Are ammonia and methanol producers on for a run of high gas prices in 2022?

Like the vital nitrogen fertilizer they handle, seasonal cheer will be in short supply for Europe’s ammonia producers and buyers this festive season, after many difficult months in which upward price trajectories showed no sign of slowing.

More than 230 delegates from 45 countries participated in CRU’s Sustainable Fertilizer Production Technology Forum, 20-23 September 2021. To highlight this successful virtual event, we report on keynote and selected technical presentations.

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.