All posts by hlancey@bloomberg.net

Fertiglobe Wins Bid for H2Global Pilot Auction

ADNOC - Abu Dhabi, Ammonia, Clean Ammonia, Egypt, Europe, Germany, Green Hydrogen, Low-Carbon

Fertiglobe has been named the winning bidder for a contract valued at up to €397 million to supply the European Union with renewable ammonia from Egypt as part of the H2Global pilot auction that is funded by the Germany Federal Ministry for Economic Affairs and Climate Action. The ammonia will have a delivered price of €1,000/mt until 2033.

Abu Dhabi-based Fertiglobe is a strategic partnership between ADNOC and OCI Global. The company has committed to supplying up to 19,500 mt of renewable ammonia in 2027, subject to the actual production start date and supply availability, with increased volumes of up to 397,000 mt cumulatively by 2033 as part of the winning bid.

Fertiglobe has support from Egypt Green Hydrogen, which will supply renewable hydrogen as a feedstock to produce renewable ammonia. Egypt Green Hydrogen is a partnership between Fertiglobe, Scatec ASA, Orascom Construction, the Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company.

“This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025,” said Fertiglobe CEO Ahmed El-Hoshy. “Our selection as the winning bidder in H2Global’s pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible.”

H2Global’s “double auction” was implemented to facilitate the rapid expansion of low-carbon hydrogen and derivatives. Germany has committed €4.43 billion to the model. The auction, facilitated by hydrogen trading company and subsidiary Hintco, was launched at the end of 2022 and attracted 22 bids across five continents.

Intrepid Potash Inc. – Management Brief

Management Briefs

Intrepid Potash Inc. announced on July 10 that its Board of Directors has elected Barth Whitham, formerly Lead Independent Director, as its Chair. The Board has also initiated a search process to identify a successor for Intrepid CEO Bob Jornayvaz, who was injured in a polo accident in April (GM April 12, p. 26) and remains on an extended medical leave of absence (GM April 19, p. 25).

During the search process, Intrepid’s Chief Financial Officer Matt Preston will continue to serve as Acting Principal Executive Officer, working closely with the rest of the company’s management team and Board. The Board also appointed Intrepid Director Hugh Harvey as Chair of the Compensation Committee. Jornayvaz remains a Director.

“We wish Bob well as he continues his recovery, however we recognize that it is unlikely that he will return to his CEO role,” said Whitham. “The Board has therefore determined it is in the best interest of the Company to initiate a search for a new CEO to continue to execute our strategic plan. In the interim, we have full confidence in Matt and the rest of the management team to continue to lead Intrepid during this process.”

An Intrepid Director since 2008, Whitham has more than 30 years of management and board experience in the energy, banking, and extractive resources industries. Since 2004 he has served as President and CEO and member of the board of directors of Enduring Resources LLC, and serves on the boards of directors of Ensign Energy Services Inc. and Jonah Energy LLC.

Integrated Agribusiness Professionals (IAP) – Management Brief

Management Briefs

Integrated Agribusiness Professionals (IAP), Fresno, Calif., announced on July 11 that Adam Dye and Scott Johnson have joined the company as Fertilizer Vice Presidents. IAP said their hiring coincides with the retirement of Steve Spangler “after a long and stellar career in the fertilizer industry.”

“Steve Spangler has been a tremendous asset to our organization,” said Jim Fargo, IAP President.” He is a respected professional, his knowledge, experience, and relationships will be missed. Steve brought tremendous value to our independent retailers and we wish him a prosperous and healthy retirement.”

Dye will join IAP on July 12. His experience includes founding the Ag Inputs division of Western Milling in 2017, and developing the first unit train fertilizer facility in California while building a wholesale and retail business in the Central Valley.

Johnson was Director of Potash Sales and Marketing at Intrepid Potash, led business development and sales at ADM, and most recently served as Director of Sales at Compass Minerals, where he built and led the North America team supporting the ag, turf, and industrial markets in the US. He will also join IAP on July 12.

“I am excited about leaving IAP in these very capable hands,” said Spangler. “Their wealth of experience will help IAP grow and lead the organization well into the future.”

IAP was founded in 1991 and today represents 35 independent retailers across the US ag market with combined agricultural sales in excess of $2 billion.

South African Investor Eyes Green Ammonia in Peru

Clean Ammonia, Egypt, Green Ammonia, Japan, Low-Carbon, Peru, South Africa, Spain

Phelan Green Energy, a renewables developer headquartered in Cape Town, South Africa, announced plans for a $2.4 billion green ammonia investment in Peru.

The project includes a large-scale green ammonia production plant in the Arequipa region where the Peruvian government has approved the concession of 4,000 hectares for the project. In addition, a 50-hectare concession for the construction of a processing plant in the coastal port of Matarani was granted.

“Our goal is to produce the lowest-cost green energy in the world, ensuring a sustainable and economically viable supply to key markets in the EU, Japan, and Peru,” said Chairman and Founder Paschal Phelan.

The South African investor also announced the discontinuation of hydrogen projects in Chile, Egypt, and Spain, opting to commit resources to enhance production capabilities in Peru and Saldanha, South Africa. Initial production across the Peruvian and South African sites is targeted at 440,000 mt/y of green ammonia, with plans to expand to one million mt/y.

Intrepid Updates Second Quarter 2024 Outlook

Earnings, News Briefs, Potash

Intrepid Potash Inc., Denver, Colo., announced on July 10 that it expects its second quarter 2024 potash and Trio® sales volumes to meet or exceed the upper end of its outlook, as previously announced during its first quarter 2024 earnings call on May 9, 2024 (GM May 10, p. 26).

Intrepid now expects second quarter 2024 potash sales volumes of approximately 55,000 st at an average net realized sales price of $405/st, and second quarter 2024 Trio® sales volumes of approximately 63,000 st at an average net realized sales price of $31/st. Intrepid said full-year 2024 potash production remains on track to exceed prior year results by approximately 15%.

TKI Gets Patent for Liquid Thiosulfate Fertilizer

News Briefs, Nitrogen, Sulfur, U.S., Urea, Zinc

Phoenix-based Tessenderlo Kerley Inc. on July 9 was assigned US Patent no. 12,030,827 for “liquid fertilizer comprising thiosulfate,” invented by Michael Massoud Hojjatie, Constance Lynn Frank Lockhart, Thomas Fairweather, and Terry Ludwig. The patent was filed on July 9, 2019, under Application No. 17/266,589.

“The present invention relates to an aqueous liquid fertilizer composition having a 4 wt % to 30 wt % nitrogen content and 8 wt % to 27 wt % sulfur content comprising more than 20 wt % ammonium thiosulfate, calculated as dry matter, and at least 2 wt %, calculated as dry matter, of one other compound selected from the group consisting of a sulfite, bisulfite, urea-triazone compound and zinc sulfate hexahydrate or mixtures thereof, wherein the composition has a salt out temperature of about 0 C or less as measured with the FFF-method,” according to the abstract released by the US Patent and Trademark Office.

FertiStream Purchases Nutrisource NPK Plant

Africa, Asia, News Briefs, Nitrogen, NPK, Phosphate, Phosphorus

Dubai-based fertilizer trader FertiStream DMCC announced on July 5 that it has signed an agreement to purchase a 100% share in Singapore-based Nutrisource PTE Ltd., including a newly built fertilizer blending facility in Togo with a capacity of up to 200,000 mt/y.

The facility is located 22 km north of the port of Lome, a deep-water port in West Africa that can accommodate Supramax vessels. FertiStream said the location will allow for streamlined fertilizer supply to Togo and neighboring countries, including Burkina Faso, Ghana, Niger, Benin, and Mali.

“Our mission is to connect fertilizer producers and buyers worldwide, and with this acquisition, we go even further,” said Jacques Lubbe, FertiStream Owner and CEO. “Not only will we be able to better contribute to African agriculture by streamlining access to high-quality fertilizer products across nitrogen, phosphorus, and potassium segments, but we will also provide locally produced NPK blends tailored to the specific needs of regional crops and soils.”

The plant, designed by Dutch firm EMT, includes a fully mechanized and automated production process for NPK blends with high phosphate content. The facility has 60,000 mt of raw materials storage, 30,000 mt of finished goods storage, and a quality control laboratory. FertiStream said it hopes to begin producing blended NPK fertilizer in the fourth quarter of 2024.

“FertiStream is well-connected to strong fertilizer sourcing opportunities worldwide and has the necessary knowledge, experience, skills, and commitment to bring value and thrive in Africa,” said Murari Mohan Rakshit, Founder of Nutrisource. “I am confident that the Togo project is in capable hands and will greatly contribute to the growth of the agricultural market in the region.”