
Market Outlook
The ammonia market has entered 2022 looking very different to last year, with early January Pivdenny prices $875/t higher on a mid-point basis than they were at the start of 2021, and the likelihood of further gains ahead.
The ammonia market has entered 2022 looking very different to last year, with early January Pivdenny prices $875/t higher on a mid-point basis than they were at the start of 2021, and the likelihood of further gains ahead.
The Bia Energy Operating Company says that it is evaluating a $550 million blue methanol plant at the port of Caddo-Bossier in Shreveport, Louisiana. The unit would have a capacity of 530,000 t/a of methanol using natural gas feedstock with downstream carbon capture, reducing CO2 emissions by more than 90% compared to other methanol plants. The company is expected to make a final decision in 1Q 2022, with construction expected to last approximately two years, and commercial operations to begin soon after.
As the world looks to a lower carbon future, refineries are having to examine their operating models, and look to, for example, renewable hydrogen production for desulphurisation technologies.
Topsoe has begun operations at a demonstration plant for the production of methanol from biogas. The aim is to validate the company’s electrified technology for cost-competitive production of sustainable methanol from biogas as well as other products. The project is supported by the EUDP Energy Technology Development and Demonstration Program and is developed together with Aarhus University, Sintex A/S, Blue World Technology, Technical University of Denmark, Energinet A/S, Aalborg University, and Plan-Energi. The demonstration plant is located at Aarhus University’s research facility in Foulum, and will have an annual capacity of 7.9 t/a of CO 2 -neutral methanol from biogas and green power and is scheduled to be fully operational by the beginning of 2022. It uses Topsoe’s eSMR ™ technology, which is CO 2 -neutral when based on biogas as feedstock and green electricity for heating. It also uses half the CO 2 that makes up about 40% of biogas and typically is costly to separate and vent in production of grid quality biogas.
A move towards smaller scale feedstocks such as renewable energy and waste and biomass gasification is leading to increased focus on improving the efficiency of small-scale, modular plants.
Reducing carbon footprint in the synthesis of chemicals is a new challenge, a necessary requirement in the pursuit of sustainable products designed to minimise environmental impacts during their whole lifecycle. So-called “green” technologies for ammonia, methanol and hydrogen are being developed to meet these challenges. Casale, Linde, thyssenkrupp Industrial Solutions, Toyo Engineering Corporation, Haldor Topsoe and Stamicarbon report on some of their latest developments.
Global nitrogen and methanol markets are currently in the grip of a crisis in feedstock prices. Mostly this is about Europe’s dependence on imported natural gas, but – particularly on the methanol side – it has also been exacerbated by high coal prices in China, where heavy rains have led to flooding in Shanxi province, the source of one third of China’s coal. These have followed similar floods in Henan in July, and come at a time when China is facing power rationing due to a lack of electricity supply. The world economy’s long-awaited bounce back from the covid pandemic has also led to a general global surge in energy demand, and consequently higher oil and gas prices.
In China, requirements for methanol to produce olefins, mainly propylene and ethylene, from coal, has driven much of the growth in global methanol demand over the past decade. However, a new wave of ethylene cracker investment may put a stop to new MTO plant building.
Soaring natural gas prices in Europe, up to five times higher than normal, have led to numerous economic shutdowns of ammonia capacity across the continent. This has coincided with shutdowns in the US due to hurricane season, reducing availability considerably and driving up prices in the western hemisphere.
Considering the current shift to produce biofuels instead of conventional oil products, M. van Son of Comprimo discusses the impact that this may have on the ability to process the sour water acid gas streams produced in existing or new sour water strippers.