All posts by hlancey@bloomberg.net

Amogy to Build Houston Manufacturing Facility

Ammonia, News, News Briefs, Northeast

Ammonia-to-power technology provider Amogy, Brooklyn, N.Y., on Sept. 19 announced its expansion into Houston, Texas, with the renovation underway on a $40 million, 53,000-square-foot oil and gas equipment manufacturing facility within its four acres of leased space. The company said this signifies a pivotal step in Amogy’s journey toward commercialization and its commitment to accelerating the global energy transition.

“We chose Houston as the ‘energy capital of the world’ because we wanted to be near customers, suppliers, and the right talent as we ramp up operations,” said Amogy CEO and Co-Founder Seonghoon Woo. “We are eager to begin manufacturing so we can deliver to customers globally.”

“The Amogy Houston site will be a state-of-the-art facility able to manufacture our clean energy solution at scale,” added Daniel MacCrindle, Amogy COO. “We are working quickly to hire and equip the facility so we can begin production.”

Amogy expects to employ approximately 200 team members at the facility by the end of 2024 and hiring is already underway. Open positions include chemical, mechanical, electrical, and system engineers with both basic and advanced (MS/PhD) degrees; manufacturing professionals; mechanical technicians; welders; EHS professionals; operations professionals; and sales professionals.

Set to be operational in early 2024, the plant will be used for the assembly manufacturing of Amogy’s clean energy solution. This product, known as a “Powerpack,” enables carbon-free mobility for the hard-to-abate sectors such as shipping, transportation, and stationary power generation. To date, Amogy’s ammonia-to-power technology has been demonstrated with success in a drone, tractor, and semi-truck, and the Amogy team is currently retrofitting a tugboat to be the world’s first ammonia-powered vessel.

The company’s investors include Amazon’s Climate Pledge Fund, AP Ventures, SK Innovation, Aramco Ventures, and Mitsubishi Corp.

FuelPositive Reports Green Ammonia Milestone

Canada, Green Ammonia, News, News Briefs

FuelPositive Corp., Waterloo, Ont., on Sept. 19 announced third-party certification of initial ammonia output from its commercial model FP300 system start-up and activation of catalyst. It said the FP300 is the first decentralized, containerized, operational green ammonia system in the world.

“We are excited to report that we have completed a key initial validation of our full-scale ammonia pilot system,” said COO and Director Nelson Leite. “For this initial evaluation period, to follow safety protocols, we ran one converter at 50% catalyst density, with a set target of anhydrous ammonia output. The results, which were internally and third-party validated, confirmed that our target conversion rates and volume output of anhydrous ammonia were exceeded by 17%.”

Leite said the next step for FuelPositive, currently underway, is to run the system at full catalyst density across all five converters to achieve the final stages of system validation. “Once this step is completed, it will be third-party validated and disclosed,” he said. “A Factory Acceptance Test (FAT) is the planned final step before farm readiness.”

“This is the good news Canadian farmers have been waiting for,” said Curtis Hiebert of eAcres Inc., a farmer and demonstration project partner. “My family and I are relieved that FuelPositive has reached this important milestone towards the commercialization of its green ammonia technology. Canadian farmers have faced extreme fertilizer supply chain challenges caused both by price and supply uncertainty. Having the means to produce the fertilizer we need on the farm, when needed and at a price we can rely on, will significantly reduce our family’s concerns.”

FuelPositive expects to deliver its first commercial units, which produce over 100 mt/y, in 2024 (GM June 2, p. 26).

Bion Technology Producing Nitrogen Fertilizer

Ammonia, Eastern Cornbelt, News, News Briefs, Nitrogen

Livestock waste treatment technology provider and premium sustainable beef company Bion Environmental Technologies Inc. on Sept. 19 announced that its Ammonia Recovery System (ARS) at its Fair Oaks commercial-scale demonstration facility in Indiana (GM Nov. 18, 2022) has achieved and maintained controlled steady-state operations under a variety of conditions. The company said that when at a steady state, the system produces an ammonium distillate (solution), the base of Bion’s nitrogen fertilizer products. 

New York-based Bion said it has begun optimizing the system’s operating parameters so that it will meet or exceed Bion’s economic models for large-scale commercial projects. The company expects the optimization to take at least four to eight weeks, at which point final design for commercial projects can begin. 

The patented ARS is the core of Bion’s Gen3Tech platform. The ARS recovers and upcycles problem ammonia contained in the effluent from anaerobic digestion, where methane is captured (and more ammonia is released) from the manure stream. The ARS captures the ammonia, minimizing its environmental impacts and creating low-carbon and organic nitrogen fertilizer products with it.

In the next few weeks, the company intends to produce ammonium distillate at Fair Oaks in several concentrations and apply for organic certification for each. Bion also said it will produce a solid/granular nitrogen fertilizer product that is both climate-smart and water-smart, a pure nitrogen fertilizer with a low carbon footprint that is water soluble and readily available to plants. It said the granular product can be easily and cheaply shipped from locations where it is not wanted, to regions or locations where it is needed. Bion has applied to several state agencies to certify the granular product for use in organic production. 

“We are very pleased with system performance at Fair Oaks, and to be back in control of our timelines,” said Bion CEO Bill O’Neill. “Over the next few weeks, we will conduct demonstration tours with key stakeholders in the beef industry, potential partners in distribution, banking, and project finance, and others as we establish the strategic relationships needed to develop commercial projects.”

Ammonia-to-Hydrogen Rules Spark Concern

Ammonia, Europe, Germany, Hydrogen, News, News Briefs, U.S. Gulf

Europe’s nascent hydrogen industry is ready to battle the European Commission over a new set of rules, with businesses arguing that the proposals from Brussels will strangle growth of the clean fuel, according to a Bloomberg report.

Hamburg-based Mabanaft Group, via its subsidiary Oiltanking Deutschland, and the US’s Air Products & Chemicals Inc. have drawn up plans to build a facility for converting ammonia into hydrogen at the German port by 2026 (GM Nov. 23, 2022). But the project is stalled amid ongoing discussions with the EC, according to people familiar with the issue.

The Commission said the legislative procedure is ongoing, with the final design of the regulatory framework subject to change. The fight pits the principles of fair competition against the needs of businesses to be able to draw up plans solid enough to attract financing.

In its proposal for a renewable gas and hydrogen directive, the Commission stipulates that third-party access to terminals should be “ensured,” meaning that investors would have to make available on the market any spare capacities. 

Mabanaft argues that in order to access bank financing for its planned ammonia cracker, it needs to strike long-term contracts of about 20 years for all capacities as soon as possible, according to sources. The company declined to comment as it is in confidential discussions with German and European institutions.

Germany’s economy ministry, which acknowledged that some investors had raised concerns, said that the goal of the European regulation is to preclude exclusive long-term contracts. The Commission’s proposal does leave open options for member states to help investors, and regulators could decide to exempt major new hydrogen infrastructures, including liquid ammonia terminals, under certain conditions.

Other potential market participants also voiced concerns. “Since investors want to see the high investments in crackers paid off as quickly as possible, they will want to market all capacities from the start for business reasons,” a consortium of EnBW, VNG AG, and JERA Co. Inc. told Bloomberg. The companies are finalizing a feasibility study for an ammonia demonstration plant in Rostock in eastern Germany (GM June 23, p. 1). 

Uniper SE, which earlier this month said it will offtake and ship ammonia produced from JERA Americas and ConocoPhillips on the US Gulf Coast, said a careful balance is needed when regulating an emerging market. “Regulatory requirements that are too strict or vague could actually hinder investment,” the company said.

CNGR, Al Mada Plan Battery Venture in Morocco

Africa, Morocco, News, News Briefs, Phosphate

CNGR Advanced Material Co., a Chinese maker of battery components, is joining forces with African private investment fund Al Mada to build an industrial base in Morocco, according to a Bloomberg report.

Construction at the site in Jorf Lasfar will start this year, with first output of battery materials targeted for 2025, the partners said in a joint statement. Total investment is seen at more than 20 billion Moroccan dirhams ($2 billion).

Phosphate-rich Morocco is key to making the lithium ferrophosphate, or LFP, cells that are increasingly used in electric vehicles. The country is also positioned on the doorstep of Europe, a growing EV market, while benefiting from free-flowing trade with the US.

The venture plans to develop “precursors active materials” for nickel-cobalt-manganese, or NCM, batteries, as well as production units for LFP cathodes and recycling facilities for battery materials.

The venture’s output, sufficient to equip more than 1 million EVs a year, will mainly be exported, according to the statement. The partners are in talks with state-owned OCP Group to secure the phosphates they need.

Fertiglobe Inks Logistics MOU with AD Ports Group

ADNOC - Abu Dhabi, Ammonia, Egypt, News, News Briefs, Nitrogen, Urea

Abu Dhabi-based Fertiglobe, the nitrogen joint venture between OCI Global NV and ADNOC, announced that it has signed a non-binding Memorandum of Understanding (MOU) with Abu Dhabi’s AD Ports Group to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.

“The two companies will explore opportunities to leverage AD Ports Group’s state-of-the-art cargo handling and storage infrastructure, as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency, and further automates its logistical activities,” Fertiglobe said in a Sept. 18 statement.

“The MOU will enable us to expand our partnership beyond Egypt and the UAE in other geographies, as well as to the shipping and storage of green ammonia, and further help us to optimize our logistics cost structure,” said Fertiglobe CEO Ahmed El-Hoshy.

Fertiglobe recently introduced a cost optimization program, targeting $50 million in recurring annualized cost savings by the end of 2024.

Sale Agreement Reached for Beyondie SOP Project

Australia, News, News Briefs, Sulfate of Potash

Australian restructuring firm McGrathNicol, which put sulfate of potash (SOP) junior Kalium Lakes Ltd. into receivership last month, confirmed on Sept. 21 that it has agreed to the sale of Kalium’s Beyondie SOP project in Western Australia to fellow SOP developer Agrimin Ltd. on undisclosed terms.

In a statement, McGrathNicol said it has entered into a Share Sale Agreement with Agrimin for the sale of Kalium Lakes’ subsidiaries, Kalium Lakes Potash and Kalium Lakes Infrastructure. These entities comprise all of the operations and employees of the Kalium Lakes group.

The deal remains subject to capital raising by Agrimin to fund the transaction. If all conditions are satisfied, completion of the sale is anticipated in early November 2023.

Kalium collapsed into receivership in early August after it failed to find further financial support for the continued development of its Beyondie SOP project, located some 160 kilometers southeast of Newman in Western Australia (GM Aug. 18, p. 1).

Kalium produced its first batch of SOP at Beyondie in October 2021, making it Australia’s first SOP producer (GM Oct. 8, 2021). Since then, it had been producing SOP in small batches and had been targeting annual production of 90,000-100,000 mt/y of SOP. Despite last year’s high SOP prices, however, the company remained cash-flow negative.

Nedlands-based Agrimin, which is developing its own SOP project, intends to initially transition the Beyondie project to a period of “care and maintenance” to undertake its own assessment of the ongoing requirements of the project, according to the McGrathNicol statement. Agrimin’s plan is then for a targeted restart of brine field and pond operations in mid-2024, with the intention of a plant restart in the first half of 2025.

The SOP junior is developing the Mackay Potash Project, located some 940 kilometers from the northern Western Australia port of Wyndham. It is targeting a planned production capacity of 450,000 mt/y of SOP at Mackay and has offtake agreements secured for around 70% of the planned output (GM April 8, 2022).

NeuRizer Looking at Urea Plant Acquisitions

Ammonia, Australia, China, News, News Briefs, Urea

Aspiring Australian urea producer NeuRizer Ltd. (formerly known as Leigh Creek Energy) said it has had preliminary discussions on the acquisition of an ammonia and urea plant that is currently operating, and has begun due diligence on another after signing a confidentiality agreement.

Adelaide-based NeuRizer in its Sept. 18 ASX market update did not disclose the locations of the targeted acquisitions, but said the confidentiality agreement relates to a facility designed to produce 800,000 mt/y or urea, as well as ammonia. It expects to complete due diligence in the fourth quarter of 2023 with a decision expected in the first quarter of 2024.

A spokesman said the company is continuing discussions on the potential acquisition of the other facility and is considering “all options for financing and therefore ownership.” In addition, the spokesperson said it is uncertain at this stage whether NeuRizer will import at least some of the output from the acquired plant, should an acquisition be successful.

The company is pursuing parallel discussions for securing a strategic partner for its original NeuRizer Urea Project, which is planned to have an initial capacity of 1 million mt/y of urea and would utilize in-situ gasification (ISG) based on coal from the decommissioned Leigh Creek coal mine some 550 kilometres north of Adelaide (GM Aug. 5, 2022).

NeuRizer confirmed that due diligence with one of the parties has been completed and the relevant approvals are being sought, although it added that there is no guarantee that the negotiations will be successful. NeuRizer said it continues to work with the EPC contractor and partner, South Korea’s DL E&C Co. Ltd., on the project’s cost optimization.

NeuRizer also reported that it is looking to establish a urea distribution company in Australia and has held discussion with its Chinese partner Meijin Energy Investments (Hainan) Co. Ltd. (MEI). It said the distribution company would be tasked with handling urea imports and developing the market for urea from the NeuRizer Urea Project.

MEI already produces significant amounts of ammonia and urea, according to NeuRizer. A company spokesperson said NeuRizer is looking to import urea into Australia in 2024, including from Meijin.

MEI is a subsidiary of the Meijin Group, which is the largest integrated hydrogen company in China. NeuRizer in July signed an agreement with MEI to produce hydrogen in China through in-situ gasification for the developing fuel market.

Turkey’s Gűbretaş to End TSP Production at Yarimca

News, News Briefs, Triple Superphosphate, Turkey

Turkish fertilizer producer Gűbre Fabrikalari TAŞ (Gűbretaş) plans to discontinue TSP production at its Yarimca production site in order to upgrade the plant to produce slow-release fertilizers, Bloomberg reported, citing a company statement.

Gűbretaş said the market share of slow-release fertilizers has been growing recently and the plant’s technology is outdated.

Yarimca is the company’s main production site, where it produces some 800,000 mt/y of NPK fertilizers, according to its annual report. The facility is reportedly Gűbretaş’ only TSP production site, with a nameplate capacity of some 185,000 mt/y.

Specialty Crop Biologicals Study Launched

California, News, News Briefs

Stratovation Group, Salinas, Calif., a research, marketing, and communications firm specializing in the food and agriculture sector, on Sept. 20 announced that it is engineering a new study, “Biologicals: Specialty Crop Growers’ Perceptions, Values and Potential,” to look at how specialty-crop growers perceive agricultural biologicals for vegetable, leafy greens, and fruit and nut crops.Stratovation has previously conducted a study on the use of biologicals for row-crops.

Collaborators on the new study include The Fertilizer Institute (TFI), the Agricultural Retailers Association (ARA), Western Growers (WG), and DC Legislative and Regulatory Services (DCLRS). The study also will be undertaken with support and ongoing strategic counsel from biologicals specialist Dr. Pam Marrone.

“Partnering with these exceptional organizations for this specialty crop effort is really a testament to the findings farmers shared with us during our row-crop biologicals study,” said Cam Camfield, Stratovation Founder and CEO. “We are excited because more thoughtful input from a variety of players at the front end will help us get better data throughout the study. And better data will drive better planning and results for every organization involved, and ultimately for the growers.”

“Like all the other sponsor partners joining this study, TFI recognizes the importance of understanding how our growers are using agricultural biologicals,” said Corey Rosenbusch, TFI President and CEO. “Like the earlier row-crop study, this effort provides a unique opportunity to gather insights directly from growers, enabling our members to support their input needs effectively and drive sustainable innovation deeper into agriculture.”

“Agricultural biologicals have become an indispensable component of grower strategies,” said Daren Coppock, ARA President and CEO. “We suspect that is even more true in the specialty and fruit and vegetable sector, but this study will put that idea to the test.”

The study is set to kick off this year and occur annually. Stratovation said the 2023 study will set benchmarks for adoption and attitudes around the use of biologicals by specialty crop growers and provide a roadmap to those companies seeking to grow and develop the market category.

Camfield said this will be a “grower-centric study,” adding that “it’s time for the market to listen to them more, seek to understand the good, and work to improve any weaknesses perceived at the grower level.” Stratovation also has offices in Ohio, Pennsylvania, Illinois, and Missouri.