All posts by hlancey@bloomberg.net

Sungrow Hydrogen Wins Bid for China Project

China, Clean Ammonia, Green Ammonia, Hydrogen, Low-Carbon, Methanol

Sungrow Hydrogen has won the bidding for the electrolyzer system that will be used at the China Energy Engineering Corporation’s (CEEC) Songyuan Hydrogen Energy Industrial Park in Jilin, China. The project is billed as the world’s largest green hydrogen, ammonia, and methanol integrated project.

Sungrow Hydrogen’s 1000 Nm3/h ALK hydrogen production system will be utilized for the project, which is expected to produce 110,000 mt/y of green hydrogen, 600,000 mt/y of green ammonia, and 60,000 mt/y of green methanol. The project, which is being built by the state-owned CEEC, began construction at the end of 2023.

It is expected that the project will “load follow,” meaning that hydrogen and ammonia will be produced flexibly, depending on how much wind and solar power are available at any given moment.

This is the third project Sungrow Hydrogen, a green hydrogen production system solutions provider based out of China, has won within Jilin province.

Egypt Signs Deals for Green Ammonia Projects

Clean Ammonia, Egypt, Europe, Green Ammonia, Low-Carbon

Four European companies have signed agreements with the Sovereign Fund of Egypt (TSFE) for green ammonia projects in Egypt that require a combined investment of $33 billion. The deals were signed during the EU-Egypt Investment Conference in Cairo at the end of June.

Egypt detailed that an $11 billion investment is associated with a green ammonia project at the East Port Said port, while $14 billion will be invested by BP, Masdar, Hassan Allam Utilitie, and Infinity Power as part of a green ammonia project in Sokhna. The Sokhna Port will host the two other green ammonia projects from Ocior Energy worth $4.25 billion and Taqa Arabia and Voltalia SA worth $3.46 billion.

TSFE is a private investment fund for investment in Egypt’s state-owned assets. The agreements are part of a plan to boost Egypt’s economy, which has been impacted negatively by geopolitical events in Gaza and the Sudan region.

NextChem to Study Low-Carbon Fertilizer Plant

Clean Ammonia, Europe, France, Green Ammonia, Low-Carbon, Nitrogen

NextChem, a subsidiary of Italian engineering group Maire Tecnimont, has been awarded a feasibility study and pre-FEED contract by FertigHY to use NX Stami Green Ammonia™ and NX Stami Nitric Acid™ technologies for a fertilizer plant in France.

FertigHY announced plans in May to build a low-carbon fertilizer plant in France’s Hauts-de-France region (GM May 17, p. 24). The project’s capital expenditure is estimated at $1.4 billion with an expected commissioning date of 2030. The plant will produce 500,000 mt/y of nitrogen fertilizers, covering approximately 10% of France’s total fertilizer consumption.

The FertigHY consortium was established in 2023 and is composed of EIT InnoEnergy, RIC Energy, MAIRE, Siemens Financial Services, InVivo, and Heineken. The consortium aims to invest in Europe for the decarbonization of the economy.

Yara Agrees to Offtake Green Ammonia from Egypt

Clean Ammonia, Egypt, Green Ammonia, Green Hydrogen, Low-Carbon

Yara Clean Ammonia (YCA) on July 1 signed a heads-of-terms agreement for renewable ammonia offtake from the $890 million project in Egypt being developed by Norwegian-based Scatec, Egyptian state-owned Egyptian Petrochemicals Holding Co. (ECHEM), and Egyptian-based Misr Fertilizers Production Co. (MOPCO).

According to the preliminary agreement, Yara will offtake and export hydrogen-derived green ammonia, although Yara did not announce quantities. Scatec and its partners are expected to build a new 240MW hydrogen project with renewable energy input and a seawater desalination plant. The hydrogen will then be used to produce 150,000 mt/y of green ammonia using MOPCO’s existing production facilities. Operation is planned to begin in 2027.

The project in Damietta, Egypt, has also been awarded funding from the European Investment Bank as part of the $290 million funding package announced during the EU-Egypt Investment Conference in Cairo at the end of June.

“Yara Clean Ammonia has a diversified portfolio of asset-backed and offtake agreements for low-emission ammonia,” said YCA CEO Hans Olav Raen. “This project will further strengthen our sourcing portfolio of renewable ammonia and is a testimony to Yara Clean Ammonia as the most preferred off-taker as the world’s largest trader and distributor of ammonia. Once the project has reached a final investment decision, the renewable ammonia from this project will help us reliably serve our customers across several market sectors.”

Yara recently opened its own renewable hydrogen and ammonia plant in Norway (GM June 14, p. 1). Yara’s clean ammonia unit is the operator of the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple production and consumption sites.

USDA Estimates 91.5 M Planted Corn Acres

News Briefs, U.S.

USDA’s June 28 Acreage report estimated corn planted area in the US at 91.5 million acres, down 3%, or 3.17 million acres, from last year and the eighth highest planted acreage in the US since 1944. Compared with last year, planted acreage is expected to be down or unchanged in 31 of the 48 estimating states. Corn area harvested for grain, estimated at 83.4 million acres, is down 4% from last year.

Soybean planted area for 2024 was estimated at 86.1 million acres, up 3% from last year, with planted acreage up or unchanged in 24 of the 29 estimating states. All wheat planted area for 2024 was estimated at 47.2 million acres, down 5% from 2023, with decreases in planted acreage reported for winter wheat but increases noted for spring wheat and durum.

All cotton planted area for 2024 was estimated at 11.7 million acres, up 14% from last year.

Florida Moratorium on Local Fert Ordinances Expires

Florida, News Briefs, U.S.

A one-year moratorium on new, local fertilizer ordinances that the Florida legislature passed during the 2023 March-May legislative session officially expired on July 1, meaning local municipalities across the state are once again free to pass their own rainy season bans on fertilizer application.

Lawmakers took no action on the controversial moratorium during the 2024 January-March legislation session. In February, a coalition of 57 elected officials from municipalities that already had enacted local fertilizer ordinances urged lawmakers to let the moratorium expire, according to a letter sent to Gov. Ron DeSantis, Senate President Kathleen Passidomo, and House Speaker Paul Renner.

“As leaders charged with protecting our constituents, keeping Florida’s waterways clean is a top priority,” the letter said. “Water quality is of utmost importance to our health, our environment, and our economy. From the beaches to the bays, Florida’s tourism industry and local businesses require clean water.”

Among the 35 Florida counties that have fertilizer ordinances, 18 have summer bans, TC Palm of the USA Today network reported. Most of the 32 counties that don’t have ordinances are in the Panhandle, North Florida, and around Lake Okeechobee.

The moratorium was passed to give the University of Florida time to study the effectiveness of local fertilizer ordinances, TC Palm reported. Last year, the legislature gave the University of Florida’s Institute of Food and Agricultural Sciences $250,000 for the study.

Arianne Touts Study Results for Quebec PPA Plant

Canada, Lithium, News Briefs, Phosphate, Phosphoric Acid, Sulfuric Acid, U.S.

Arianne Phosphate, a development-stage phosphate mining company based in Quebec, on June 27 announced the results of s prefeasibility study (PFS) that the company commissioned in January to assess the viability of constructing a purified phosphoric acid (PPA) plant in the Saguenay region of Quebec.

The facility would be capable of producing 350,000 mt/y of PPA for use in lithium-iron-phosphate (LFP) battery production, and an additional 220,000 mt/y of secondary phosphoric acid for use in the production of specialty fertilizers and animal feeds.

The full downstream operation is projected to have an initial Capex of roughly $1.65 billion, which includes a contingency of approximately $240 million. Arianne said the Capex covers logistics for a phosphate concentrate transportation system on the south shore of the Saguenay River, an onsite sulfur plant for the production of sulfuric acid, and both a merchant grade acid and purified phos acid plant.

The PPA facility would generate revenue through the sale of finished products, which the company said includes 350,000 mt of PPA at $2,300/mt, 220,000 mt of secondary acid at $1,200/mt, and 3 million mt of gypsum at $10/mt. Arianne said the project would also generate surplus electricity that could be sold into the grid, but this has not been accounted for in the company’s internal revenue model.

Arianne said the study noted several environmental benefits of the project, including lower transport and handling associated with the igneous-based phosphate concentrate feedstock; less risk from the transport of sulfuric acid; the production of a marketable gypsum; and the capture of steam through turbines that will generate electricity.

The project’s location also creates advantages, the study noted, including easy access to high-quality igneous phosphate; a preexisting port, rail, and a road network for easy access to emerging LFP demand in Quebec, Ontario, Michigan, and the southeast US; and a highly skilled local workforce.

“Opportunities like this don’t come along often,” said Brian Ostroff, Arianne President. “Access to a high-quality phosphate concentrate, the ability to economically produce PPA for use in specialty applications, and the advent and growth of the LFP battery provide extremely compelling economics with a pre-tax NPV of over US$4.5 billion. Further, the study also demonstrates the opportunity for our Lac à Paul mine to have a local customer. In looking at the two projects in their entirety, the Arianne companies would provide enormous benefit to its stakeholders and unlock significant value for its shareholders.”

Petrobras Breaks Production Contract with Unigel

Brazil, News Briefs

Petrobras has reportedly ended a contract with the Unigel Group for the production of fertilizers, Grupa Estado reported. According to the state-owned company, the custom industrialization commitment (Tolling) concluded at the end of last year was not met within the June 27 deadline.

Petrobras plans to reorganize its operations in the fertilizer segment in line with its 2024-2028 Strategic Plan. In a statement on its website, the company said it continues to analyze a definitive, profitable, and viable solution for the supply of fertilizers to the Brazilian market.

Petrobras in May said it expects to make a final decision on its Araucária Nitrogenados (ANSA) fertilizer factory in Paraná in mid-2024, with plans to have the facility back in operation in mid-2025 (GM May 3, p. 30).

Unigel, the struggling Brazilian chemical and fertilizer maker, obtained approval in May from a majority of creditors, including Pacific Investment Management Co. (PIMCO), for its out-of-court restructuring plan, according to Bloomberg (GM May 24, p. 1).

Pakistan Initiates Hearing into Fert Pricing Collusion

News Briefs, Pakistan

The Competition Commission of Pakistan (CCP) has started a hearing in a pricing collusion case involving the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), CCP announced in a statement.

According to the statement, the hearing was initiated after show-cause notices were issued to FMPAC and its six leading fertilizer manufacturing companies for prima facie violations of Section 4 of the 2010 Competition Act stemming from an advertisement issued by FMPAC on Nov. 21, 2021, on behalf of its members, announcing a “Maximum Retail Price (MRP) of Urea” during a period of rising urea prices and reported shortages.

The CCP said it “noted a pattern of uniform pricing and price parallelism among fertilizer manufacturers in various districts, irrespective of size and market share of manufacturers, suggesting potential collusive activity.”

The inquiry further noted that “despite having different costing structures owing to varying rates of feedstock or fuelstock input gas, which is the major component in manufacturing, the MRP of all players remained fixed.”

“From a competition law perspective, the announcement of prices by an association is considered a commercial decision beyond permissible activities,” CCP said.  “CCP has repeatedly directed business associations to refrain from engaging in price fixing or other collusive practices.”

IFFCO Launches Nano Fertilizers Campaign

DAP/MAP, India, News Briefs

Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) has launched a campaign to promote the use of nano fertilizer, according to a July 2 press release. Under the new campaign, farmers in 800 villages will receive subsidized nano urea and nano DAP, along with a stipend for the use of drones to spray the fertilizer.

Prime Minister Narendra Modi also launched a 100-day action plan to increase the use of nano fertilizers that includes 1,270 demonstrations of Nano DAP (liquid) in 413 districts and 200 trials of Nano Urea Plus (liquid) in 100 districts.

“Nano fertilizers will be made available by IFFCO to the cooperatives and sales outlets. Farmers will be told about the benefits of nano fertilizers. IFFCO is providing 2,500 agricultural drones for farmers for spraying nano fertilizers, through which farmers will be able to easily spray nano fertilizers on over 245,000 acres,” the release stated.

“The Ministry of Fertilizers will also collaborate to implement this program to encourage use of nano fertilizers over traditional fertilizers with the goal of promoting self-reliant agriculture and a self-reliant India,” the release added.

In August 2021, IFFCO commercially produced the world’s first indigenous nano urea based on nanotechnology, providing an alternative to conventional urea. In March 2023, IFFCO also made nano DAP in liquid form available to farmers.