Tag: Investment

Six Japanese companies have agreed to explore investment opportunities for a large-scale green ammonia plant in Odisha, India, being planned by Acme Group. Last year, IHI Corporation agreed to import up to 400,000 t/a from Acme’s project. IHI has now signed a memorandum of understanding with Hokkaido Electric Power, Mitsubishi Gas Chemical Company, Mitsui OSK Lines (MOL), Mizuho Bank, and Tokyo Century Corporate. The partners plan to create a special-purpose company for ammonia production and investment participation. Hokkaido Electric is testing ammonia co-firing at its coal-fired power plant and studying infrastructure needs, while Mitsubishi Gas Chemical wants to decarbonise its ammonia use. Mizuho Bank is planning to invest up to $13 billion in hydrogen and ammonia supply chains by 2030, and Tokyo Century is exploring green ammonia as part of its shift beyond solar to support carbon neutrality.

The Kazakh government has approved the construction of a new ammonia and urea plant in the country’s Mangistau region, on the eastern shore of the Caspian Sea. Construction will be carried out by a joint venture between QazaqGaz National Company and ESTA Construction under Qazesta Fertilizers Ltd. The total investment for the project is $1.35 billion, with construction expected to be completed within three and a half years. The plant’s annual production capacity is projected to reach up to 700,000 t/a of urea and 420,000 t/a of ammonia, adding value to the country’s natural gas production and helping to substitute domestic production for foreign imports of nitrogen fertilizer. Despite a national demand of 3.2 million t/a, domestic production currently only meets about half of that need.

In its 4Q 2024 results presentation, Abu Dhabi-based Fertiglobe said that it expects to reach a final investment decision (FID) on two clean hydrogen and ammonia projects in the US and Egypt in 2025. Fertiglobe confirmed that FID on the ADNOC-ExxonMobil low-carbon hydrogen and ammonia project in Baytown, Texas, is expected in 2025, with operations anticipated to begin in 2029. ADNOC’s 35% equity stake in the project will be transferred to Fertiglobe at cost once the project is operational.

New carbon capture-based plants could see US nitrogen capacity jump over the next few years, but Trump attacks on IRA tax credits may scupper some ongoing projects.

India’s push to replace its sizeable urea imports with home grown capacity continues, but may not keep pace with rising domestic demand.

In her Indian 2025-26 budget presentation on February 1st, finance minster Nirmala Sitharaman announced a $1.15 billion investment to build a new 1.27 million t/a ammonia-urea complex at Namrup in Assam province. The plant will be a brownfield development at the Brahmaputra Valley Fertiliser Corporation Ltd (BVFCL) site. Sitharaman said that it was part of the Indian government’s commitment to strengthening agricultural infrastructure and self-sufficiency in fertilizer production. The gas-based ammonia-urea plant is expected to start up in 2028-29 and will supply farmers in northeast and eastern India.

PT Pupuk Kujang, a subsidiary of state-owned fertilizer producer holding company PT Pupuk Indonesia, is conducting a trial production of green ammonia projected to replace coal in the power generation industry. In local press reports, Robert Sarjaka, Director of Operations and Production of Pupuk Kujang, said that the production of green ammonia is part of the company’s efforts to contribute to realizing the energy transition in Indonesia, namely making Pupuk Kujang the first company to produce green ammonia in the country. Pupuk Kujang receives green hydrogen from renewable power supplied by PLN Indonesia Power (PLN IP), part of state power utility PT PLN. In the first trial phase, Pupuk Kujang will process 1 t/d of green hydrogen into 5 t/d of green ammonia.

BHP has awarded a significant engineering, procurement, and construction management (EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd. The A$40 million contract is for the first phase of the proposed expansion of BHP's copper smelter and refinery facilities in South Australia, as the company moves towards a final investment decision on the smelter and refinery expansion, currently anticipated in the first half of FY27. The initial stage focuses on strategic planning and development during the project's study phases. Subsequent stages will cover detailed engineering, procurement, and construction management as the project advances.

Nickel Asia Corp. (NAC) says that it has completed the sale of its 15.6% stake in Coral Bay Nickel Corp. to its Japanese partner Sumitomo Metal Mining. Nickel Asia says that the sale has been due to “unfavourable market conditions” for the high pressure acid leach (HPAL) nickel processing plant. Although Coral Bay is regarded as one of the most efficient HPAL units in the world, nickel prices have been extremely volatile over the past few years and stood a 4-year lows in January at around 15,000/t, their lowest level since September 2020. Nickel Asia still owns a 10% stake in the Taganito HPAL Nickel Corp.

TotalEnergies and its partners Basra Oil Company and QatarEnergy have begun construction works at ArtawiGas25, a processing facility for the associated gas from the Ratawi field, located in the Basra region. The facility, part of the Gas Growth Integrated Project (GGIP), represents an investment of around $250 million and will process 50 million scf/d of gas which would previously have been flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region. The GGIP project is a $10 billion project designed to enhance the development of Iraq’s natural resources and improve the country’s electricity supply. It includes a large-scale gas processing plant, with a first phase of 300 million scf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity.