Tag: Urea

The last three years has seen a renaissance in fertilizer production and blending in sub-Saharan Africa. We highlight the expansion of capacity in Nigeria and other countries within the region.

Enhanced efficiency fertilizers (EEFs) occupy a small but high-value segment of the overall fertilizer market, although their production and use is accelerating. This trend is unsurprising given that their higher costs are usually more than offset by better efficiency and lower application rates.

The ammonia market continues to be oversupplied, and prices have dropped to historically low levels. Yuzhnyy rates dropped to $175/t f.o.b. in July. In spite of shutdowns in Trinidad and elsewhere, demand remains sluggish and recovery from the Covid epidemic is patchy, especially in the US.

Spanish fertilizer producer Fertiberia is teaming up with energy firm Iberdrola to build Europe’s largest plant for generating green hydrogen for industrial use – in this case ammonia production. The 100MW solar plant and accompanying 20 MWh lithium-ion battery system and 20MW electrolytic hydrogen production system will be built at a cost of $174 million, and electrolyse water to produce 720 t/a of hydrogen. When fed into Fertiberia’s existing ammonia plant at Puertollano, 250km south of Madrid, the hydrogen will allow a 10% reduction in natural gas use by the plant, saving the company 39,000 t/a in annual CO 2 emissions. Start-up is planned for 2021. Fertiberia will also use electrolysis-generated oxygen as a raw material for nitric acid, which is used to produce ammonium nitrate at the site.

Alistair Wallace, Head of Fertilizer Research, Argus Media, assesses price trends and the market outlook for nitrogen.

The following case study reports on a serious incident in a urea plant where a leak in the weld overlay in the urea reactor bottom resulted in a costly plant shutdown and near miss of rupture of the high pressure vessel. It is known that carbon steel can corrode with rates of 1000 mm/year not taking into account erosion due to flashing. The impact of the NH3/CO2 ratio on the corrosion rate is questionable.

Although the Covid-19 pandemic has been the big story in every market this year, the disruption and dislocations that this has caused have masked some of the bigger trends in the urea market, such as the revival of Chinese exports and India’s push for self-sufficiency.

High pressure urea equipment often has lined nozzles. A lined nozzle is a full strength carbon steel nozzle that is protected against carbamate corrosion by a 5 or 6 mm thick stainless steel liner plate, which is welded to the carbon steel nozzle on either end. This design is however very vulnerable to fatigue cracking due to the difference in thermal expansion between the austenite liner and the carbon steel nozzle. History shows that such a design will lead to cracking in the long term. The following case study reports on a serious incident in a urea plant where a leak in a urea reactor nozzle caused a plant shutdown but could have resulted in rupture of the high pressure vessel.

Maire Tecnimont subsidiary Tecnimont SpA has finalised its $350 million EPC contract with Egypt Hydrocarbon Corp. (EHC) for the construction of a new ammonia plant at Ain Sokhna. The preliminary contract was announced in September last year. The contract for the plant, which will produce 1,320 t/d of ammonia, also includes extensive utilities and offsite facilities. Project completion is scheduled for 36 months from the effective contract date, which will be triggered by financial closure of the project. Project finance is being arranged by the Italian export credit agency SACE and the US EXIM Bank. The ammonia will be used to feed an ammonium nitrate plant, already existing and in operation in the same industrial facility, also owned by EHC.

Alistair Wallace, Head of Fertilizer Research, Argus Media, assesses price trends and the market outlook for nitrogen.