North Dakota energy and agriculture interests are enthusiastic about a little known system that its owner/developer is claiming will convert onsite flare gas from the plentiful oil wells in this state and turn it into ammonia fertilizer. “It’s almost too good to be true to be able to take one problem and turn it into a solution for another,” said one observer.
N-Flex LLC’s future project may hinge on its request for a $1 million grant from the state to launch an onsite plant to convert the flare-offs into ammonia. N-Flex founder Neil Cohn, New York City, declined to comment on the grant application or how soon the initial demonstration could take place, though another source indicated something could be in place within 18 months.
The plants would be small and modular, with the initial cost for the first one put at $4 million. One oil well would reportedly produce 3 st/d of anhydrous ammonia. The plants would be put on skids and could be moved easily. Initial pilot plants would reportedly be constructed in Europe and use Proton and Casale technology.
Agriculture interests are watching closely because of the high price of ammonia and a proposal by the North Dakota Corn Growers to build a $1 billion nitrogen production facility in North Dakota or other nearby states, also to use flared gas (GM July 16, p. 1). That project recently received a $100,000 grant from the North Dakota Agricultural Products Utilization Commission (GM July 30, p. 12).
Oil and gas producers are under state requirements to limit the practice of gas flaring because of environmental problems. Current estimates are that up to one-third of the gas being produced in North Dakota is being wasted by flaring.
Agriculture Commissioner Doug Goehring told the local press if N-Flex is successful, it could reduce the wasteful practice of flaring while reducing fertilizer costs to farmers. Goehring, along with Gov. Jack Dalrymple and Attorney General Wayne Stenehjem, is a member of the industrial commission that will consider the N-Flex grant Monday, Aug. 20. “This has potential, and I think it will work very well and the state will reap the rewards,” said Goehring.
The North Dakota Department of Mineral Resources is also very positive about N-Flex’s potential. “This is a great example of the value added services that North Dakota natural gas production provides,” said Alison Ritter, department spokeswoman. “Not only can this technology help reduce the amount of flaring; it does so in a way that benefits North Dakota farmers. It’s a win for everyone.”