Ammonia

LONDON (ICIS)–European Melamine Editor Melissa Hurley interviews Energy Market Reporter Lars Hoeylo Kjoellesdal, Senior Editor Sylvia Traganida, Deputy Managing Editor Deepika Thapliyal and Market Reporter Joy Foo. Ammonia, urea and gas market factors to consider for Q4 include: Volatile gas prices illustrate a finely balanced market Tight ammonia availability; some scheduled maintenances expected Unexpected gas-related shutdowns in Egypt short-lived; India urea tenders boost sentiment Certain factors support global urea market despite thin demand in Europe Demand in China showing signs of recovery before National Day holiday (1-7 October) China's average melamine operating rates hovering around 60%; market to track urea costs European melamine production cost pressure versus slow demand recovery Additional reporting from Energy Market Reporter Lars Hoeylo Kjoellesdal, Senior Editor Sylvia Traganida, Deputy Managing Editor Deepika Thapliyal and Market Reporter Joy Foo. Click here to listen in a separate window.

24-Sep-2024

HOUSTON (ICIS)–RWE Supply & Trading announced it has signed a memorandum of understanding (MoU) with AM Green Ammonia (AMG) for the long-term supply of green ammonia from its plants based in India. The terms outline the supply of up to 250,000 tonnes/year of green ammonia to be sourced from AMG's production sites in Kakinada and Tuticorin, India. Deliveries from AMG’s sites are expected to start by 2027 with a subsequent offtake agreement between RWE and AMG forthcoming which will detail the contractual provisions. The plan is that initially there will be 50,000 tonnes coming from the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility. AMG's ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind, and hydroelectric power and the produced ammonia will meet standards for Renewable Fuels of Non-Biological Origin (RFNBO). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway. “RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage,” said Costas Papamantellos, RWE Supply & Trading Head of International Hydrogen Investments.

18-Sep-2024

HOUSTON (ICIS)–The Fertilizer Institute (TFI) told the US Surface Transportation Board (STB) in testimony on Tuesday that there is an ongoing need for the freight rail industry to shift its focus toward customer service and growth. The industry group said the fertilizer segment has long relied on rail service for the efficient and safe transport of its products, but it has struggled with declining service quality, increasing rates and a lack of attention to customer needs. “The fertilizer industry is heavily reliant on rail and cannot afford to see continued stagnation in freight rail service,” said Ryan Bowley, TFI vice president of government affairs. “Unfortunately, we have seen freight volumes plateau, services decline and rates skyrocket.” TFI said that their testimony comes at a pivotal time for the Class I railroads as the STB’s inquiry into the rail industry’s growth potential highlights a disturbing trend, which is that freight rail carloads have been in decline since 2008. Trucking and other transportation sectors have consistently expanded their capacity. At the same time that rail employment has dropped, and carloads have declined, rail rates have surged. TFI said between 2005 and 2017, rates for transporting critical farm inputs like anhydrous ammonia increased by over 200%. It noted that such price hikes, combined with inconsistent service, have made it difficult for fertilizer companies to meet the just-in-time delivery demands of farmers across the country. “These rising costs and service failures are particularly troubling for industries like ours, which depend on rail to move bulk products safely,” Bowley said. “Our members regularly face delays, held shipments and escalating rates, often without any recourse. It is clear that a new approach is needed.” TFI highlighted the need for the rail industry to pivot toward a customer-focused, growth-driven model that balances profitability with service quality as the industry’s adoption of Precision Scheduled Railroading has led to deep cuts in staff and equipment and adding to service issues. The group did praise recent moves by the STB to increase oversight of rail service and pricing, including the implementation of faster emergency service orders. It did stress the importance of additional reforms such as expanding access to reciprocal switching, a policy that would allow shippers to switch between competing rail carriers more easily. “The rail industry should be actively competing for freight, not relying on captive customers to drive revenue. We need a system where railroads are not just collecting more revenue from a shrinking base but are growing their business by serving more customers with better service,” Bowley said.

17-Sep-2024

HOUSTON (ICIS)–US ammonia-to-power solutions provider Amogy has announced a partnership with HD Korea Shipbuilding & Offshore Engineering, POSCO Holdings, Seoul National University and the American Bureau of Shipping to explore the feasibility of an innovative offshore ammonia cracking solution to deliver low-cost, accessible clean hydrogen fuel. Amogy said under this partnership, HD Korea Shipbuilding will design the ammonia supply system and integrate it into the overall system, and it will provide its ammonia-cracking technology. Seoul National University will contribute expertise in process design and simulation, while POSCO Holdings intends to harness its proprietary cracking process design technology to optimize the systems needed for ship application. The American Bureau of Shipping will oversee certification of the design as the class society. Amogy said ammonia, a hydrogen carrier, offers a more cost-effective and convenient alternative to liquefied hydrogen due to its established storage and transport infrastructure. Additionally, with energy density 2.7 times greater than hydrogen, ammonia is emerging as an optimal carbon-free fuel for the maritime industry. Further, the company said their technology unlocks the potential of ammonia as a hydrogen carrier by leveraging state-of-the-art catalyst materials to crack ammonia into hydrogen and nitrogen at lower reaction temperatures with high durability thereby reducing heating and maintenance requirements. “We are excited to join forces with this esteemed consortium to develop an innovative offshore ammonia cracking solution,” said Seonghoon Woo, Amogy CEO. “This partnership marks a pivotal advancement in leveraging ammonia to achieve net-zero emissions.”

17-Sep-2024

HOUSTON (ICIS)–The US Department of Energy (DOE) has announced a conditional commitment for up to $1.559 billion to Wabash Valley Resources to help finance a commercial-scale waste-to-ammonia production facility using carbon capture and sequestration (CCS) technology. The government funding would be part of a total investment of $2.4 billion that Wabash Valley Resources would secure for the project through private investment. Located in West Terre Haute, Indiana, the project is being planned to produce 500,000 tonnes of anhydrous ammonia annually and permanently sequestering 1.6 million tonnes of carbon dioxide annually. Officials said it will have the potential to be the world’s first, carbon-negative ammonia production facility and that the company would be repurposing an industrial gasifier to utilize petroleum coke. This will be the US’ first efforts to utilize petroleum coke to produce ammonia and store the associated emissions via permanent geologic sequestration. Wabash Valley Resources said it is their intention to demonstrate a commercially and environmentally viable end-use alternative for petroleum coke, which is a waste product generated during the oil refining process. Officials said this project would play a critical role in securing domestic fertilizer supply for the region commonly known as the Corn Belt, contributing to both food security and climate goals. This low-carbon ammonia would be cost-competitive compared to existing ammonia imports, helping to drive down costs for local businesses and consumers. It was noted that while ammonia fertilizer is a crucial element of the US agricultural system, its production is a significant contributor to climate change. Globally, the manufacturing of the nutrient accounts for 1% to 2% of all carbon dioxide emissions. Through this project, Wabash Valley Resources is striving to reduce the agricultural industry’s emissions. In addition to its environmental benefits, the project is expected to create 500 construction jobs and 125 operations jobs.

17-Sep-2024

HOUSTON (ICIS)–Fertilizer developer Genesis Fertilizers announced it has partnered with technology provider CARBONCO and has agreed to negotiate formal licensing and process design package services for a carbon capture and storage (CCS) project. Genesis said this collaboration marks a significant step toward the potential production of sustainable, low-carbon ammonia and urea nitrogen fertilizer for their farming partners and the broader fertilizer industry in North America. Under the terms CARBONCO would be responsible for implementing a solution capable of capturing approximately 1 million tonnes of carbon dioxide annually, which would then be transported directly to a sequestration hub. If implemented, the CCS project would be built at the proposed Genesis Fertilizers production complex to be constructed in Belle Plaine, Saskatchewan, Canada. The company said both parties are confident that this first-of-its-kind CCS project would play a pivotal role in supplying exceptionally clean grain to the market. “In line with our ultimate low carbon intensity fertilizer goal, Genesis Fertilizers has been working with CARBONCO and is pleased to welcome them as our technology provider to explore an exciting opportunity to implement their carbon capture solution,” said Jason Mann, Genesis Fertilizers CEO. “We believe that CARBONCO is the most suitable partner for our project, offering a robust solution that meets our technical and commercial needs.” The front-end engineering design (FEED) phase for Genesis Fertilizers project is expected to begin within the next few months. The company said the final investment decision will be made based on the results of the FEED work and other critical steps, but it is aiming to commence commercial operations by 2029. As proposed there would eventually be both ammonia and urea production with plans to have 75% of output locked into farmer commitments with the balance sold on the open market. Genesis has previously said the goal of this development is to help farmers have access to a vertically integrate fertilizer supply and enable the production of low carbon grain.

13-Sep-2024

HOUSTON (ICIS)–Green hydrogen company Ohmium International has announced a strategic partnership with clean ammonia firm Ten08 Energy, which will have Ohmium’s electrolyzer solutions supply Ten08 Energy’s project in Texas. The Texas project, located on the Gulf Coast, aims to produce 1.4 million tonnes of clean ammonia annually, using a combination of blue ammonia, produced from natural gas and carbon capture, and green ammonia, generated from renewable energy. It is envisioned as a significant step towards decarbonizing the ammonia industry and providing a sustainable and cost-effective solution to meet cleaner energy sources demand with the clean ammonia shipped to customers in Europe and Asia. “We are looking forward to leveraging the efficiency, cost effectiveness and high purity of the hydrogen produced by Ohmium’s PEM electrolyzers for this exciting project,” said Jean Perarnaud, Ten08 Energy CEO. “As grid and renewable energy capacity continue to expand, our project’s phased approach and Ohmium’s scalable solutions are poised to meet the growing demand for sustainable energy solutions.”

12-Sep-2024

HOUSTON (ICIS)–Having lashed out across northern Mexico and south Texas with rain and winds over the past 24 hours, Tropical Storm Francine has started to track further with an expected landfall in Louisianna as a moderate hurricane on 11 September. With numerous manufacturer plants, storage and shipping operations, especially within New Orleans, the state of Louisianna is an important segment for the US fertilizer industry, which has quickly turned more concerned over the possible hurricane. Especially as the tropical threat has increased in the last 36 hours and possibly bringing even more destructive impacts than initial thought over the coming days. High winds, heavy rainfall and subsequent flooding is a part of the immediate forecast with the acreage in the path of Francine maybe being subject to crop damage and significant inundation. This could decrease yields, halt harvesting and will hold back any additional field work for several weeks, including any fall fertilizing. For now, the focus is on preparing as much as possible for what might develop within the next 24 hours with producer Nutrien said it was keeping watch and was getting ready. “We are actively monitoring the situation surrounding Tropical Storm Francine and have comprehensive emergency response plans in place to ensure the safety of our people and operational integrity of our facilities,” said Nutrien spokesperson. CF Industries, with considerable operations in the storm’s project path, has not responded to inquiries over plans for storm preparation or maintaining operations. Also, without comment has been producer Mosaic, but ammonia sources said it was expecting the storm would have little bearing on current activity as it is still a quiet period for the nutrient. A phosphate source said some imports volumes which were scheduled to arrive soon have been delayed a bit because of these renewed weather concerns. Overall the cautious but not overly concerned sentiment is prevalent with it likely due to the less severity of this potential hurricane, but also because the fertilizer industry has weathered some challenges in recent years like the pandemic and international conflict. Given the past events experienced, an industry source said “I think the market has shrugged it off so far because that's how we're doing most shocks so far this year and it's worked”. Late on Tuesday afternoon Tropical Francine was at a wind speed 65mph and moving northeast at 10mph with their predictions that it will strengthen further as it moves closer to landfall estimated now to be sometime during Wednesday.

10-Sep-2024

SAO PAULO (ICIS)–Storm Francine continues strengthening into a hurricane as it approaches the southern costs of the US, but its path could veer slightly west and potentially hit key petrochemicals sites in Louisiana which border with Texas. According to a Tuesday morning update from the US’ National Hurricane Center (NHC), the storm is to become a hurricane when it makes landfall later in the day, although it should weaken soon after that as it heads north. On Monday, the NHC already said the storm would develop into a hurricane, but its forecasted trajectory then was to hit central parts of Louisiana – including New Orleans – but not the industrious western part of the state. Louisiana has declared a state of emergency; the state has just commemorated the 19th anniversary of Hurricane Katrina, which brought havoc to New Orleans’ outer and poorer suburbs from which many are still recovering. If the current, Tuesday morning forecast holds, key petrochemicals-heavy municipalities in Louisiana such Plaquemine, Geismar, Baton Rouge, and Taft, among others, could be hit by Francine’s gusts. Companies such as Methanex or CF Industries, with production facilities in the areas, had not responded to a request for comment about their hurricane preparations at the time of writing. “Francine is moving toward the north-northeast near 8 mph (13 km/h).  A turn to the northeast with an increase in forward speed is expected later today or tonight.  On the forecast track, Francine is anticipated to be just offshore of the coasts of northeastern Mexico and southern Texas through this [Tuesday] afternoon, and then move across the northwestern Gulf of Mexico, making landfall in Louisiana on Wednesday,” said the NHC. “After landfall, the center is expected to move into Mississippi on Wednesday night or Thursday. Maximum sustained winds are near 65 mph (100 km/h) with higher gusts. Strengthening is expected through Wednesday morning, and Francine will likely become a hurricane later today or tonight [Tuesday]. Francine is expected to weaken quickly after landfall.” CHEMICALS, OIL, GASLouisiana is home to many large petrochemical hubs that produce polyolefins, polyvinyl chloride (PVC), caustic soda, ethylene oxide (EO), ethylene glycol (EG), isocyanates, polyols, and ammonia among many others. The state has numerous refineries. Several offshore oil wells are off of the coast of Louisiana. Companies will often evacuate them and shut-in oil wells – majors such as Shell or ExxonMobil have announced so. The Gulf of Mexico accounts for about 14% of total US crude production and 5% of dry gas production, according to the country’s Energy Information Administration (EIA). The state is home to the Louisiana Offshore Oil Port (LOOP), the only deepwater oil port in the US. If the port shuts down, then the US would lose an important outlet for oil exports. That could offset some of the shut-in wells. Louisiana is also home to two large terminals that export liquefied natural gas (LNG) in the western part of the state. Sabine Pass LNG is in Sabine, Louisiana, and Cameron LNG is in Hackberry, Louisiana. Any shutdowns could affect domestic natural gas markets if the terminals spend too much time offline. Domestic gas supplies could build up, causing local prices to fall. Prices for ethane, the predominant feedstock for ethylene production, typically follow those for natural gas. Ethane prices could fall further if Francine disrupts operations at any of the crackers in Louisiana. LOUISIANA VS TEXAS IMPACTResidents of the Gulf Coast, from Mexico's Yucatan peninsula to the US' state of Alabama, are well accustomed to living with extreme weather events. In times of storms and hurricanes, many turn to specialized sites such as Space City Weather, which on Tuesday did not seem too worried for the fate of Texas – more so about Louisiana's. Space City Weather's main analyst, Houston-based Eric Berger, reiterated on Tuesday the hurricane will be "no joke" in Louisiana, even if for many Texans it will have looked like more like “a regular late" summer day. “The tropical system will remain well offshore from Texas, and effects for most of our area will be minimal. In fact, I would go so far as to say that by tomorrow [Wednesday] people in Houston will be going, ‘Hurricane? What hurricane. This was a joke.’ Well, people who didn’t know better will be thinking that at least — but not readers of this site,” said Berger. “Francine will not be a joke for southern Louisiana. The tropical storm has sustained winds of 65 mph and is likely to move inland Wednesday afternoon or evening as a Category 2 hurricane. The state’s most populated area, from Baton Rouge to New Orleans, will be directly impacted with winds, rains and storm surge.” The analyst concluded saying that for the most part Houstonians will not be able to tell a hurricane is passing offshore on Tuesday and Wednesday. “Skies will be mostly cloudy, with highs in the mid-80s [degrees Fahrenheit, around 29°C], which is cooler than normal for this time of year,” said Berger. “Perhaps that’s our greatest takeaway from this storm, some slightly cooler days. I’m not complaining.” Source: US National Hurricane Center

10-Sep-2024

LONDON (ICIS)–On 11 July, H2Global Holding and Hintco announced it had accepted Fertiglobe’s bid of €1000/tonne of renewable ammonia into the Port of Rotterdam as the sole winner of the H2Global pilot auction programme. In this episode of the ICIS Hydrogen Insights podcast, ICIS hydrogen editor Jake Stones sits with the co-founder of the H2Global mechanism and H2Global Holding and Hincto CEO Timo Bollerhey to discuss the results of the auction, the status of the contract between Fertiglobe and H2Global and the role that the H2Global mechanism plays in the evolution of the hydrogen market. Finally, the pair discuss in detail the conditions around the E-SAF lot for the pilot auction, which received no bidders.

10-Sep-2024