Cronus Executes EPC Contract with TKIS; Groundbreaking Pushed Back to 2Q 2019

Cronus Fertilizers announced on Oct. 1 that it has executed a lump-sum turnkey contract with ThyssenKrupp Industrial Solutions (TKIS) for the engineering, procurement, and construction (EPC) of its $1.6 billion Tuscola, Ill., nitrogen fertilizer plant. Cronus said its contract with TKIS is the result of an extensive review process between the two companies that began in 2017.

Cronus first reported that it had brought on TKIS as a general contractor for the project in August 2017 (GM Aug. 25, 2017). Cronus had earlier contracted with Tecnimont SpA, a unit of Maire Tecnimont SpA, as the facility’s EPC contractor (GM March 2, 2015).

“We are proud to reach this important milestone in realizing our vision for a state-of-the-art fertilizer facility that will provide major benefits for the entire region,” said Erzin Atac, CEO of Cronus Chemicals. “We look forward to continuing our partnership with TKIS and community leaders as the project moves toward construction.”

Chicago-based Cronus said the Tuscola facility, which is expected to have 2,300 mt/d of ammonia production capacity, is on track for groundbreaking in the second quarter of 2019. The last timeline given by the company (GM Aug. 27, 2017) had construction starting in late 2018 and lasting for 37 months, with the fertilizer plant projected to begin operations in the second half of 2021.

The company described the EPC contract with TKIS as a “critical step forward” for the facility, which it said will be a major source of fertilizer for farmers throughout Illinois and the Midwest because of its strategic location, replacing the need for imported product.

“Thyssenkrupp Industrial Solutions is honored Cronus Chemicals has selected us as the designated EPC contractor for their planned 2,300 tons per day ammonia plant project in Illinois,” said Dennis Lippmann, CEO Thyssenkrupp Industrial Solutions, North America. “We look forward to continuing our partnership and supporting Cronus during the next phase of this exciting project. Our successful track record in ammonia plant technology and undisputed expertise in engineering, procurement, and construction qualifies us for this large-scale project, which will move forward once the financing is completed.”

In June, Cronus reported that it had received a letter from the Urbana-Champaign Sanitary District (UCSD) expressing UCSD’s desire to desire to extend its contract to sell effluent to Cronus through at least July 1, 2019 (GM June 13, p. 1). The water contract was initially set to expire on July 1, 2018.

Cronus told UCSD at that time that it hoped to secure financing for the project within a few months. The plant will be located on 240 acres of farm land west of Tuscola, which lies about 160 miles southwest of Chicago, along a CSX railroad line. Groundbreaking originally was planned for the spring of 2015, but cost overruns and difficulty lining up contractors postponed the project.

“I am thrilled with the continuing progress of the Cronus project. Bringing Thyssenkrupp Industrial Solutions to the table as their EPC contractor is a significant step forward in this process,” said State Senator Chapin Rose (R-Mahomet). “Thyssenkrupp has considerable expertise both in the U.S., and internationally, in large-scale construction – especially for this type of facility. I realize there are still steps to cover before this project is completed, but, certainly, a company of the character, competency, and integrity of Thyssenkrupp signing on to the Cronus project is welcome news for Central Illinois.”

The latest capacity figures given for the plant (GM Aug. 25, 2017) include 2,300 mt of anhydrous ammonia per day and up to 2,000 mt/d of granular urea. This is revised from 2015 plans, which called for 2,200 mt/d of ammonia and 3,850 mt/d urea (GM March 2, 2015), indicating a significant drop – 48 percent – in urea capacity. The 2015 report also mentioned planned production of diesel exhaust fluid.