All posts by hlancey@bloomberg.net

Hyphen Lines Up Funding for Green Project

Germany, Green Ammonia, Hydrogen, News Briefs, South Africa, South Korea

Hyphen Hydrogen Energy, Windhoek, Namibia, on Oct. 25 announced that it has partnered with the Development Bank of South Africa (DBSA) for a funding facility to be used to advance Hyphen’s $10 billion green ammonia project in Namibia.

Hyphen said the facility will go towards the partial funding of engineering, environmental, and socio-economic development workstreams on the process of developing the project up to the final investment decision. At full-scale development, which is anticipated before the end of this decade, the project is expected to produce 2 million mt/y of green ammonia for regional and global markets.

Hyphen, a joint venture between Nicholas Holdings Ltd. and ENERTRAG SE, was appointed the preferred bidder by the Namibian government to develop the project for the export market.

Hyphen has already signed nonbinding green ammonia offtake agreements for 1 million mt/y. Offtakers include German multinational utility company RWE Supply and Trading (GM Dec. 9, 2022), South Korean hydrogen producer Approtium (GM Feb. 3, p 30), as well as a major unidentified chemical company.

Hyphen has signed a partnership agreement with ILF Consulting Engineers, which will provide project management services and technical expertise, as well as procurement and contract advice. It will also provide implementation expertise in support of Hyphen’s socioeconomic development goals.

Arianne Receives Grant for New Fertilizer

Canada, News Briefs, Phosphate

Arianne Phosphate,a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, on Oct. 24 announced that its joint research project with the CEGEP of Riviere-de-Loup’s Environmental and Biotechnology Group (GREB) has received a grant of C$727,500 over three years from the Natural Sciences and Engineering Research Council of Canada (NSERC), the major Canadian federal agency for funding natural sciences and engineering research.

The company said the grant has been provided after a successful first round of work aimed at producing a new breed of fertilizers through a process, developed by GREB, of combining Arianne’s high-purity phosphate concentrate with organic waste. The work being done by GREB would alter the traditional process of making fertilizer, removing the requirement of acid, and allow for the use of organic wastes that otherwise often wind up in landfills.

“We are all very excited by the early success of this work,” said Raphael Gaudreault, Arianne COO. “The potential of this work could be transformative, allowing the industry to move away from acid-based fertilizers towards a more circular and environmentally friendly way of production.”

Arianne said its deposit can produce a very high-purity, low-contaminant phosphate concentrate that allows it to be used in innovative and technically advanced products, differentiating the company from most of the other phosphate projects currently in place.

“Whether for use in innovative fertilizers, or for its proven ability to work as a key ingredient in the growing LFP battery industry, Arianne can be an industry leader in the ‘greening’ of the world’s economy,” said Arianne President Brian Ostroff.

Russian Fert Production Up 27% in September

News Briefs, Nitrogen, Potash, Russia

Russia’s production of fertilizers increased 27% in September, to 2.2 million mt (100% active nutrients) compared to September 2022, and was 2.6% higher than August volumes this year (GM Oct. 6, p. 27), Interfax reported, citing the country’s Federal Statistics Service (Rosstat).

Potash production in Russia grew 92.9% in September versus September 2022, to 0.9 million mt (100% active ingredients) but decreased 0.9% from August volumes. Phosphate fertilizers production reached 0.3 million mt in September, a 1.2% year-over-year increase but 1.3% less than August 2023 production volumes.

Production of nitrogen fertilizers in September increased by 5% year-over-year, to 1 million mt, and was 7.2% more than in August 2023.

Russia’s fertilizer production in the nine months through Sept. 30 totaled 18.9 million mt in terms of active ingredients, up 6.1% year-over-year. Nine-month potash output was 6.4 million mt, up 12.6% from last year, while phosphate production reached 3.3 million mt, up 0.4% from last year. Nine-month nitrogen production increased 4.1%, to 9.2 million mt.

Maire Secures Awards in China, Middle East

China, Europe, Green Ammonia, Middle East, News Briefs, Nitrogen

Italy’s Maire SpA reported that its Sustainable Technology Solutions (STS) business unit headed by NextChem has been awarded licensing and equipment supply contracts for an “Ultra Low Energy” (ULE) urea plant in China and a pre-feasibility green ammonia study for “a major fertilizer producer” in the Middle East.

The contracts in China were awarded by Shandong Lianmeng Chemical Co. for a plant with capacity of 2,334 mt/d in Shouguang, in Shandong province, Maire announced on Oct. 23. Maire said the urea plant will be the eighth global facility that utilizes the proprietary ULE design licensed by Stamicarbon, NextChem’s nitrogen technology licensor (GM April 21, p. 29).

According to Maire, the ULE design allows a 35% reduction in steam consumption and a 16% decrease in cooling water use, “making its energy savings unparalleled in the market.”

Maire did not disclose the Middle East fertilizer producer, but said STS under the pre-feasibility study will define the process configuration for a 450 mt/d green ammonia plant based on Stami Green Ammonia proprietary technology.

K+S, DB Cargo Ink 10-Year Rail Contract

Europe, News Briefs

K+S Group said rail freight firm DB Cargo AG will remain the leading logistics provider for the company for the next ten years. The two companies signed the follow-up of the existing contract ahead of schedule, K+S reported on Oct. 26. The contract had been due to expire in February 2025.

DB Cargo currently transports 6 million mt/y for K+S, which accounts for around 80% of K+S’s total rail transportation of potash salts and other mineral raw materials. A total volume of around 70 million mt has been agreed to under the new 10-year contract term.

DB Cargo handles rail logistics for K+S at the Sehnde, Zielitz, Bernburg, Werra, and Neuhof sites. For K+S, DB Cargo transports most of the goods on the Werra and Neuhof routes to the port of Hamburg and from Zielitz to Hamburg.

The new contract also involves the modernization and expansion of the freight car fleet. From mid-2025, DB Cargo will procure a total of 650 new bulk freight rail cars (type Tanoos), which K+S said are particularly well suited for transporting K+S products.

DB Cargo AG is the freight transportation division of Deutsche Bahn and Europe’s leading freight railroad. K+S noted that within Europe and to the seaports, rail freight transportation is the preferred option for the company, with well over 200,000 truck journeys avoided through the use of rail logistics.

JPMC, Transpet Sign Deal for Phos Acid Plant

Jordan, News Briefs, Phosphoric Acid, Turkey

Jordan Phosphate Mines Co. (JPMC) and Turkish oil trading and logistics company Transpet Petroleum and Energy Co. signed an agreement on Oct. 24 to establish a joint-venture phosphoric acid plant in Aqaba on Jordan’s Red Sea coast, according to Jordan News. The two parties inked an initial agreement for the project back in May (GM May 19, p. 29).

The project will have a budget of $400 million and is expected to have an annual production capacity of up to 300,000 mt, or around 165,000 mt P2O5, according to the report. The new plant is expected to be operational in about three years.

JPMC Chairman Mohammad Thneibat welcomed the deal with Transpet and emphasized the potential for further cooperation between Turkey and Jordan in the production of phosphate fertilizer, as cited by the Menafn news agency.

The project is part of JPMC’s plan to expand its manufacturing, diversify sources of income, and “contribute to Jordan’s efforts to address unemployment” in the country.

Yara, Navigator Holdings Invest in Bunkering

Ammonia, Carbon, Europe, London, News Briefs, Scandinavia, Texas

Yara Growth Ventures AS, the venture investment arm of Oslo-based Yara International ASA, and London-based shipowner Navigator Holdings Ltd. on Oct. 25 announced they have led an investment round of $5.7 million in Azane Fuel Solutions AS, an ammonia bunkering startup, which plans to commence construction of its first bunkering unit in 2024 in Norway. Each company acquired a 14.5% interest in the company.

Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS, both of Norway, was founded in 2020 as a company that develops proprietary technology and services for ammonia fuel handling to facilitate the transition to green fuels for shipping.

The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit. The parties anticipate that the commencement of operations of the bunkering units will begin in Scandinavia in 2025.

Azane is a commercial partner of Yara Clean Ammonia, who expects to provide clean ammonia to be stored in Azane’s bunkering units once operational.

“Currently ammonia fuel bunkering does not exist,” said Stian Nygaard, Investment Director, Yara Growth Ventures, who is joining Azane’s Board of Directors. “With this investment it is expected to become a reality in a year, starting in Scandinavia. This is anticipated to be a huge milestone for reducing emissions from the shipping industry. By enabling Azane to be the first mover on providing this key part of the infrastructure, our goal is to fill a gap in the ammonia chain needed for fueling ships.”

The parties said the total addressable market for ammonia powered ships is estimated to equal the entire deep sea shipping fleet of 100,000 vessels worldwide, which over time is expected to transition to zero-carbon fuels. Currently, the world of ocean shipping accounts for approximately 3% of global emissions.

Navigator is the owner and operator of the world’s largest fleet of Handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (LPG), and ammonia.

Navigator owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas, on the Houston Ship Channel. Navigator’s fleet now consists of 56 semi- or fully refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable.

Uruguay Developer Pursues Hydrogen/NH3 Port

Brazil, Hydrogen, News Briefs, South America

Infrastructure developer Corredor Logistico Multimodal (CLM) is in talks with three international energy companies interested in making hydrogen-based fuels and chemicals at a $1.6 billion deepwater port it wants to build on Uruguay’s sparsely populated Atlantic Coast, according to a Bloomberg report.

The project, dubbed La Paloma Hub, would power hydrogen plants and reportedly be located close to offshore wind-energy blocs that state-run oil company Ancap is preparing to auction as soon as this year, CLM Vice President and shareholder Jorge Carcova Munilla told Bloomberg in an interview.

“We have pre-agreements with European companies for the development of green hydrogen, synthetic fuels and ammonia,” he said.

Uruguay’s treacherous Atlantic Coast is a graveyard of shipwrecks and grandiose port projects that foundered on the shoals of poor planning and wishful thinking. Montevideo-based CLM is betting it can succeed by building a multipurpose port that handles bulk cargo including fuels and farm products from Uruguay, Brazil, and other South American nations. 

The project involves expanding the existing port in the beach town of La Paloma by filling in 220 hectares (543 acres) of ocean and building breakwaters to handle Capesize vessels that draw too much water to dock at Uruguay’s main riverine ports of Montevideo and Nueva Palmira.

CLM, whose shareholders are Argentine and Uruguayan investors, is in separate negotiations with two international companies to finance, build, and possibly operate the port, Carcova Munilla said.

CLM needs the government of Uruguay to approve the project before it prepares feasibility and environmental impact studies, he said. Local regulations also require the government to hold a competitive bidding process to build the port, though CLM would have preferred status as the project sponsor.

Construction could start in 2025 if regulatory approvals are forthcoming and CLM wins the contract bid, Carcova Munilla said. “We think it will take five or six years for the port to be totally operational,” he said.

CLM will seek free-trade-zone and free-port status for La Paloma Hub. Carcova Munilla said a desalinization plant powered by land-based wind and solar farms would supply fresh water to the port. The facility would also have facilities for yachts and naval, fishing, and cruise ships.

Avenira Secures Mining Permit for Wonarah Project

Australia, News Briefs

Avenira Ltd., an Australian battery cathode and fertilizer project developer, reported that it has secured authorization from the Northern Territory (NT) government for initial mining activities at its 100% owned Wonarah Direct Shipping Ore (DSO) phosphate project.

The authorization allows for the start of mining activities for an initial 40,000 mt of ore, covering the test pit and early stages of the DSO project, according to the South Perth-based company’s Oct. 24 ASX statement.

Under Avenira’s mining plan approved by the NT government, the initial test pit is targeting 5,000 mt of marketable DSO material, with the approved early-stage activities targeting a further estimated 35,000 mt of ore.

The authorization also allows for surface grade control drilling to support detailed mine planning for the remaining DSO operations, as well as conditional approval for the remainder of the DSO project.

“We are delighted the Northern Territory Government has approved our mining management plan,” said Avenira Chairman and CEO Brett Clark. “This is a crucial step in delivering our mining project, which will provide feedstock for our proposed LFP cathode production plant.”

Located south of Darwin, the DSO project plans to extract and sell high-grade ore from the site’s mine, with the project designed as a simple open cut, low capital operation with a goal to supply the region with a steady source for LFP battery cathodes precursor.

“Completing this project will see Darwin become a key supplier of critical materials to the global battery market,” Clark said.

Ammonia

Ammonia, China, Eastern Cornbelt, Market Watch, Northern Plains, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

The Tampa ammonia price for November settled at $625/mt CFR, up $50/mt – or 8.7% – from October’s $575/mt CFR, and the highest level since February’s $790/mt CFR price. The escalating conflict in the Middle East, as well as firming ammonia prices in Europe and India, added fuel to expectations of an increase.

NOLA barge prices also adjusted to reflect a Tampa equivalent, strengthening to $569/st FOB from the prior $522-$526/st FOB range.

Eastern Cornbelt:

Ammonia was unchanged at $725-$750/st FOB terminals in the Eastern Cornbelt, depending on location and producer. Sources said the arrival of colder temperatures after this week’s rains should push fall ammonia application into high gear across the region.

Western Cornbelt:

Ammonia remained at $715-$725/st FOB in the Western Cornbelt, with the low reported in Nebraska and the high in Iowa and Missouri.

Northern Plains:

Ammonia in the Northern Plains edged up to $750-$775/st FOB regional terminals, up from the prior $725/st FOB level, based on the latest producer postings and netbacks on estimated delivered prices in the low- to mid-$800s/st.

China:

Ammonia exports from China totaled 161,000 mt in January-September, Trade Data Monitor reported,a 51% increase from the year-ago 105,000 mt. The strong start to 2023 followed a healthy final quarter of 2022, with high prices in Southeast Asia and low domestic demand allowing China to increase exports during the period.

Due to a recent downshift in international pricing and increased demand from domestic users, exports have slackened, however. First-quarter exports of 126,000 mt were followed by a combined 34,000 mt in the second and third quarters. September 2023 exports were 8,000 mt, down 86% from the 58,000 mt reported in September 2022.

Conversely, imports increased as domestic demand picked up. January-September receipts were reported at 591,000 mt, a 203% increase from 195,000 mt in the prior-year period. September imports stood at 34,000 mt, up 74% from 19,000 mt in September 2022.