Fertilizers

HOUSTON (ICIS)–The Fertilizer Institute (TFI) has announced the launch of the Verified Ammonia Carbon Intensity (VACI) program, which is a voluntary certification of the carbon footprint of ammonia production at a specific facility. The VACI is the first program of its kind with the industry group saying it is designed to provide ammonia consumers seeking to reduce emissions across their supply chains with an independent and certifiable carbon intensity score. TFI said the VACI certification framework will standardize the approach for calculating the carbon intensity of ammonia encompassing all aspects of ammonia manufacturing from feedstock production through the finished product at the plant gate. Producers will use the VACI standard to calculate the carbon intensity of ammonia produced at their facilities then an independent, third-party auditor will then verify or validate that the carbon intensity score is accurate. TFI president and CEO Corey Rosenbusch said ammonia is a critical input for both agriculture, emissions control and many commercial products including fabric and pharmaceuticals. “As agriculture and other industries increasingly look to develop more sustainable and resilient supply chains, the Verified Ammonia Carbon Intensity program provides ammonia consumers with certifiable transparency that will allow them to quantify the positive impact using low-carbon ammonia has on their greenhouse gas emissions footprint,” said Rosenbusch. Ammonia production typically uses natural gas as a feedstock for its hydrogen component and is an energy-intensive process with substantial carbon dioxide emissions as a byproduct. Currently there are US ammonia producers who are investing in technologies to dramatically reduce emissions with the VACI enabling them to document the varying levels of emissions reduction these technologies provide. The VACI program was developed by TFI in collaboration with technical industry experts from producers CF Industries, LSB, Nutrien, OCI and Yara with guidance from Hinicio, a strategic and technical consulting firm specializing in hydrogen and its derivatives and industrial decarbonization. Facilities certified under the program include Nutrien at Redwater in Canada and CF Industries in Donaldsonville, Louisiana, with audits that have been completed. Audits for LSB Industries in El Dorado, Arkansas, and CVR Energy in Coffeyville, Kansas, in progress. TFI said the VACI is undertaking a 60-day public consultation period for ammonia consumers and stakeholders to provide feedback on the program and its methodology and intends to refine the program based on comments received.

20-Dec-2024

HOUSTON (ICIS)–Dakota Gasification Company has confirmed that the company and fertilizer producer OCI decided earlier this month to dissolve their joint marketing venture N-7 and that it will begin its own fertilizer sales and marketing beginning 1 February. This move comes after a strategic review by both parties it was determined to dissolve the joint venture, which was focused on selling nitrogen fertilizers, industrial ammonia, urea liquor and diesel exhaust fluid (DEF). Since the partnership formed in July 2018, N-7 has shipped over 26.5 million short tons of product to more than 520 customers in 3,100 cities. The company said it will continue to offer the same products moving forward including ammonia and urea, and rather than reduce their workforce this change has lifted levels. “We have expanded our team with highly skilled professionals to enhance our ability to deliver exceptional products and service to our customers,” said a Dakota Gasification Company spokesperson. The parent company said in a statement the decision reflects a mutual recognition of the unique growth opportunities available to both companies independently. “This partnership allowed us to serve our customers with exceptional products while achieving significant milestones together,” said Daniel Gallagher, Basin Electric commodity sales & trading director. “Dakota Gas remains committed to producing and delivering high-quality products to our customers.” The companies will honor all agreements previously undertaken by N-7 with a spokesperson saying, “the market has responded favorably to our decision”. Netherlands-based OCI has not responded for comment but when the partnership was first announced it had stated N-7 would market and distribute product from Iowa Fertilizer Company, the OCI Partners operations in Texas and the Dakota Gas facility in North Dakota. In addition, it intended to market any imported product from their operations outside North America. Ending the N-7 venture follows the sale of Iowa Fertilizer Company and OCI Beaumont.

19-Dec-2024

HOUSTON (ICIS)–The US Department of Agriculture (USDA) announced it is making more than $116 million in investments for domestic fertilizer production to increase competition, lower fertilizer costs for farmers and lower food costs for consumers. USDA is awarding the funds through the Fertilizer Production Expansion Program to help eight facilities expand innovative fertilizer production in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma and Wisconsin. “When we invest in domestic supply chains, we drive down input costs and increase options for farmers. Through today's investments to make more fertilizer, USDA is bringing jobs back to the United States, lowering costs for families, and supporting farmer income,” said Tom Vilsack, USDA Secretary. Through the Fertilizer Production Expansion Program, the USDA has invested $517 million in 76 fertilizer production facilities to expand access to domestic fertilizer options for growers in 34 states and Puerto Rico. It is expected these efforts will see US fertilizer production increase by 11.8 million short tons annually and create more than 1,300 jobs in rural communities. Projects receiving this round of funding include California company Biofiltro USA Inc. which will use a $2.3 million grant to construct a new facility to process manure from dairy cows and yield more than 33,000 cubic yards of composted fertilizer alternative annually. In Georgia, Reve Solutions Inc. will have $1.3 million to expand a biosolid fertilizer composter and increase capacity through additional equipment and working capital for two production locations. This undertaking is expected to generate more than 30,000 short tons of fertilizer nutrient and create five new jobs. There is also a $2.3 million grant going to Kansas-based Farmers Cooperative Association who will expand an existing dry fertilizer facility with additional storage and processing capacity. The project will improve the efficiency of order processing and will increase its dry fertilizer production to 24,500 short tons per year.

18-Dec-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 13 December. S Korea bourse extends fall as political woes deepen; petrochemical shares slump By Pearl Bantillo 09-Dec-24 15:36 SINGAPORE (ICIS)–South Korea’s benchmark stock market index continued to bleed on Monday amid political instability wrought by the shock martial law announcement on 3 December, with impeachment motions against President Yoon Suk Yeol dropped over the weekend due to lack of quorum. INSIGHT: India poised to take up growing role in Asia ethylene ecosystem By Josh Quah 09-Dec-24 18:22 SINGAPORE (ICIS)–As far as the numbers on paper go, India may not look like a conspicuous power in the ethylene markets. The south Asian country imported around 76,400 tonnes of ethylene in 2022, a figure that dropped to around 51,800 tonnes in 2023. China Nov export growth slows to 6.7% on year; imports fall 3.9% By Jonathan Yee 10-Dec-24 15:37 SINGAPORE (ICIS)–China's exports in November grew at a slower year-on-year rate of 6.7% to $312.3 billion amid trading headwinds from a potential wave of tariffs to be levied by the incoming US administration. INSIGHT: Key takeaways for 2025 petrochemical market outlook at ICIS China customer day By Jenny Yi 10-Dec-24 19:15 SINGAPORE (ICIS)–A slow projected global recovery, the growing prominence of Africa and southern America for producers, and a bearish outlook for Asia olefins and aromatics prices in 2025 were among the topics discussed at the ICIS China Customer Day event in Shanghai on 21 November. Asian SBR import offers see support from firming upstream markets By Ai Teng Lim 11-Dec-24 13:18 SINGAPORE (ICIS)–Asian styrene-butadiene-rubber (SBR) producers are seeking to sell higher, citing upstream cost push. China to adopt looser monetary policy in 2025 as US tariffs loom By Jonathan Yee 11-Dec-24 15:36 SINGAPORE (ICIS)–China is expected to implement a “more proactive fiscal policy” and a “moderately loose” monetary policy for next year, according to the country’s top officials, amid economic headwinds and looming heavy tariffs from the US. UAE to impose 15% minimum top-up tax on large multinationals from Jan ‘25 By Jonathan Yee 12-Dec-24 12:28 SINGAPORE (ICIS)–The UAE will impose a minimum top-up tax (DMTT) on large multinational companies, to align its tax system to global standards. Strong PKO cost supports Asia fatty alcohol mid-cuts C12-14 By Helen Yan 12-Dec-24 13:50 SINGAPORE (ICIS)–Elevated feedstock palm kernel oil (PKO) prices and demand heading into 2025 are supporting Asia’s fatty alcohol mid-cuts C12-14 market. INSIGHT: Shift in rules on China phosphate ferts exports hit market sentiment By Rita Wang 12-Dec-24 19:50 SINGAPORE (ICIS)–A shift in the customs rules in China means that phosphate fertilizers will only be sold on the domestic market for the time being. However, sluggish demand as players work through winter reserves could stand to weigh on pricing. China domestic BD gains boost Asian market discussions By Ai Teng Lim 13-Dec-24 11:54 SINGAPORE (ICIS)–Sentiment is more upbeat this week in Asia’s spot butadiene (BD) import market amid recent strong gains in China’s domestic market.

16-Dec-2024

HOUSTON (ICIS)–Planning to build their first US plant in Kentucky, Swedish producer Cinis Fertilizer announced it has been approved for tax incentives. The company said it is currently planning the construction of the company’s next production facility in Hopkinsville, Kentucky and has applied for both grants and tax incentives, nationally and locally. The Kentucky Economic Development Finance Authority (KEDFA) has preliminary approved a 15-year incentive agreement with Cinis Fertilizer under the Kentucky Business Investment program. For final approval and to receive the tax credits of up to $1.5 million, the company must invest about $109 million and meet annual targets such as creating 65 full-time jobs in Kentucky over 15 years and paying an average hourly wage of $38, including benefits. Additionally, KEDFA approved Cinis Fertilizer for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. “We are grateful for the warm welcome we have received in Kentucky and look forward to contributing to the future of Hopkinsville,” said Jakob Liedberg, Cinis Fertilizer CEO. “Being granted these tax incentives is a great start and in parallel we are working on securing grants, where the processes and timelines are longer.” First announced in 2023, this will be the producer’s their third plant with the two other plants located in Sweden. The company has already signed a 10-year agreement with Ascend Elements, a leading American manufacturer of engineered battery materials, regarding the sourcing of sodium sulphate, and have arranged with potash producer K+S Minerals to purchase potassium chloride. This plant is scheduled to start in 2026, with it planned to have a capacity of up to 300,000 tonnes of potassium sulphate yearly.

13-Dec-2024

HOUSTON (ICIS)–Fertilizer producer Yara announced it has started production of the first renewable ammonia in Brazil at its Cubatao Production Complex. The company said it has achieved a 75% reduction in carbon footprint, compared to the same fossil energy product, because it uses biomethane, a purified biogas that without additional effort replaces the use of natural gas. Biomethane is produced from vinasse, a sugarcane residue in the manufacture of ethanol, and filter cake, a residue from sugar production and is made available in the gas distribution network. As the main producer of ammonia in the country, Yara said its industrial complex is currently the largest consumer of natural gas in the state of Sao Paulo. “This is the result of Yara's knowledge, innovation and technology applied with a focus on decarbonization, and represents a great milestone for the national industry and, especially, for the Cubatao hub, which in addition to being a global symbol of environmental recovery, now has the potential to lead the energy transition that Brazil needs," says Daniel Hubner, Yara International vice president of industrial solutions. Yara said this is a significant step forward in building value chains based on renewable energy with nitrogen used in numerous industries but for agribusiness, the impact is enormous. “By combining this new generation of fertilizers with a lower carbon footprint with our agronomic knowledge we will bring even more value to the farmer, opening new markets and sources of revenue,” said Marcelo Altieri, Yara Brasil president. “In the coffee chain, for example, the expectation is for a reduction of up to 40% in the carbon footprint of the harvested bean.” The producer has stated its goal is to achieve carbon neutrality by 2050.

09-Dec-2024

HOUSTON (ICIS)–Canadian farmers reported growing more wheat, oats, soybeans, dry peas and lentils, but less canola, corn and barley in 2024, according to the production of principle fields crops report from Statistics Canada. The government agency said that overall yields were higher this year compared with 2023 but there were some areas where farmers continued to face issues related to dry conditions. This was true particularly in western Canada, which the report states had a promising start to the 2024 growing season. It noted that much of the prairies received timely precipitation during seeding, although cool conditions delayed crop development in some areas. Yet a lack of rain as the summer progressed, coupled with hot weather, resulted in lower yields in some areas compared with 2023. There were good field conditions throughout the fall months which allowed farmers to complete harvest ahead of schedule, with most crops out of the fields before data collection for the November field crop survey. The agency said there were locations that did receive above-average rainfall, specifically in Ontario and western Quebec, which when combined with increased summer heat benefitted growers with higher yields. Total wheat production rose 6.1% to 35 million tonnes in 2024, with Saskatchewan wheat production rising 12.2% to 16.5 million tonnes in 2024. In Alberta, higher yields resulted in a 6.4% increase in wheat production to 9.9 million tonnes, while Manitoba was up 0.7% to 5.5 million tonnes. Canola production decreased 7.0% nationally to 17.8 million tonnes in 2024, with this drop because of lower yields and harvested area, with the declined output attributed to the hot and dry conditions in parts of western Canada in July and August. Total corn for grain production fell 0.5% to 15.3 million tonnes in 2024 with harvested area down by 4.6% to 3.6 million acres, offsetting a 4.3% increase in yields to 168.7 bushels/acre. Ontario farmers, who grow almost two-thirds of Canada's corn were down 3.5% to 9.6 million tonnes, while Quebec rose 7.9% to 3.6 million tonnes in 2024. Manitoba farmers had 1.8 million tonnes in 2024 with lower harvested area, but yields were up 8.6% to 139.4 bushels/acre. Soybean production increased 8.4% nationally to 7.6 million tonnes in 2024 with the increase due to higher yields, which were up by 7.0% to stand at 49.1 bushels/acre, while the harvested area for the crop increased 1.3% to 5.7 million acres. In Ontario soybean production climbed 7.9% year on year to 4.4 million tonnes in 2024, while in Manitoba the harvested area fell 10.9% to 1.4 million acres in 2024. Production in Quebec rose 9.3% to 1.4 million tonnes in 2024, on higher yields and harvested area. Barley production was decreased by 8.6% to 8.1 million tonnes in 2024 because of lower harvested area, which the report said was partially offset by a 3.3% increase in yields to 63.2 bushels/acre nationally. Total oat production increased by 27.0% to 3.4 million tonnes as both harvested area and yields increased in 2024. The improvements in crop output reflects the sentiment towards fertilizer consumption within in Canada this year, with nitrogen and potash volumes having robust periods of consumption during the spring. There were additional stretches of demand with significant refill participant and a good post-harvest run of ammonia also taking place before the recent arrival of winter conditions. Sentiment is that spring demand could continue at a strong pace if nutrient values do not escalate over the coming weeks and if future crop prices either stay steady or can gain some slightly increase before sowings start again.

05-Dec-2024

HOUSTON (ICIS)–US Cargill announced that as part of a strategic effort introduced earlier this year designed to strengthen the almost 160-year-old company that the agribusiness major will be reducing their global workforce by approximately 5%. The process and timeline for this to be implemented was not revealed but the company said it will be different under the circumstance as it must comply with employment laws and practices in each geography. Yet with an estimated nearly 8,000 jobs set to be eliminated, Cargill acknowledges it was not an easy choice to make this move, and said this new long-term strategy not only continues their legacy but carries forward values and core strengths that have defined their success. “As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers,” said a Cargill in a statement. The company said as the world is changing it remains committed to transforming even faster to deliver for customers and fulfil the purpose of nourishing the world. “To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy. Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition,” Cargill said. Operating in 70 countries with approximately 1,000 locations worldwide Cargill handles not only food products and ingredients from the start of the supply chain with farmers all the way to the final consumer. They also undertake agricultural solutions including fertilizers and industrial products.

03-Dec-2024

HOUSTON (ICIS)–Australian fertilizer firm Minbos Resources, who is advancing the Cabinda Phosphate project in Angola, announced it has received the first funding from the Angolan Sovereign Wealth Fund for $6.4 million and expects to finalize the construction contract this month. The company said mobilization to the phosphate fertilizer plant, located at Subantando, a new industrial area between the mine site and Cabinda city, is also planned to commence this month with phase 1 to include earthworks, access roads, drainage and concrete foundations. Another $2.43 million will be released upon mobilization of the civil contractor and upon aligning the governance arrangements of the Angolan subsidiaries, with a third disbursement of $1.17 million upon finalizing project insurances and presentation of supplier quotations for project long lead items. Minbos Resources managing director Lindsay Reed said the receipt of this funding and the commencement of construction marks the end of one journey for the company and the beginning of another with the focus now switching to construction activities, sales and marketing and advance their future as a producer of phosphate fertilizer. The Cabinda project, located in northeast Angola, is being developed based on an initial name plate capacity of 150,000 tonnes/year of enhanced phosphate rock with initial production calculated at 50,000 tonnes/year. Previously Minbos said expansion will come in two stages with it planning to add a second and third granulation circuit to reach a name plate capacity of 450,000 tonnes/year after eight years of operations.

03-Dec-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 22 November. Eastern EU nations call for duties on imports of fertilizers from Russia and Belarus Countries such as Poland, Lithuania, Latvia and Estonia have submitted a letter to the European Commission calling for customs duty to be imposed on imports of fertilizers from Russia and Belarus, the Polish Ministry of Development and Technology has confirmed. Europe apathetic to PO asset reviews as oversupply plagues market Two propylene oxide (PO) plants have been added to the pile of European assets under review as the market grapples with chronic oversupply, low utilisation and persistent low demand. Chems firms struggle to gain traction in Q3 The chemicals sectors’ third-quarter earnings period has underlined how little momentum has built up in the last 12 months, and how tepid expectations are for the closing months of the year. Tightening Russia oil supply may support oil benchmarks as Russia-Ukraine conflict marks 1,000th day Global oil benchmarks could find support from tighter Russian oil supply in coming weeks amid calls for stricter EU sanctions and escalating geopolitical tensions. Europe, US chemicals have most to lose from a new trade war Donald Trump’s resounding victory in the US presidential election gives him a powerful mandate for a policy agenda which includes ramping up trade tariffs across the board as he pursues his re-shoring agenda.

25-Nov-2024