All posts by hlancey@bloomberg.net

1Q Ammonia Volumes Up, UAN Down for CVR

Ammonia, Earnings, Natural Gas, U.S., UAN

CVR Partners LP reported first-quarter net income of $12.6 million on net sales of $127.7 million, down from the year-ago $101.9 million and $226.3 million, respectively. EBITDA fell to $39.5 million from $124.3 million. CVR reported lower prices and UAN sales volumes, while ammonia volumes were up.

CVR posted a combined ammonia production rate of 90% during the first quarter, despite a 14-day planned outage at its Coffeyville, Kan., fertilizer facility.  The company expects second-quarter ammonia utilization rates of 95-100%.

“First-quarter ammonia sales volumes were higher than the same period last year due to favorable weather conditions that allowed farmers to apply ammonia earlier in the year,” said CEO Mark Pytosh.

“Nitrogen fertilizer demand for the spring pre-planting season also has been steady and remains consistent with USDA estimates for planted grain acreage,” he continued. “In addition, nitrogen fertilizer pricing has improved since the fourth quarter, driven by continued attractive farmer economics.”

CVR declared a first-quarter 2024 cash distribution of $1.92 per common unit.

Sales (000 st) 1Q-241Q-23
Ammonia7042
UAN284359
Plant Gate Price $/st 1Q-241Q-23
Ammonia 528888
UAN267457
Production (000 st)1Q-241Q-23
Ammonia – gross 193224
Ammonia – net 6062
UAN305366
Feedstock1Q-241Q-23
Petroleum Coke75.7177.24
Natural Gas ($/mmBtu)3.105.76

K+S Preliminary 1Q Results Beat Expectations

Earnings, Europe, Germany, Potash

K+S on April 30 reported preliminary first-quarter EBITDA of €200 million ($213 million at current exchange rates), 19% above average analyst estimates (Bloomberg Consensus), highlighting strength in the European specialty industry and robust potash demand.

The German chemical major reported an average sales price of €335/mt and sales volumes of 2 million mt for the quarter. Its forecast points to an EBITDA of €500-€650 million for the year. The company’s first-quarter results will be released on May 13, 2024.

Topsoe Tech Licensed for CF Blue Ammonia Plant

Blue Ammonia, Clean Ammonia, Denmark, Low-Carbon

Denmark-based technology provider Topsoe announced on May 1 that it has been awarded a contract to support the Front End Engineering Design (FEED) study for a low carbon ammonia plant in Louisiana that CF Industries Holdings Inc. is evaluating in collaboration with Mitsui & Co. Ltd.

Topsoe will license its SynCOR Ammonia™ technology to CF for the project. The technology enables the production of low-carbon ammonia when combined with carbon capture and storage.

CF and Mistui have proposed a $3 billion low-carbon ammonia plant at CF’s Blue Point Complex in Louisiana (GM Feb. 16, p. 1; Aug. 19, 2022). The partners have opted for additional FEED studies before making a final investment decision (FID).  The plant is expected to generate 1.7 million mt/y of blue ammonia.

Land Awarded for Green Ammonia Project in Oman

Asia, Clean Ammonia, Europe, Green Ammonia, Green Hydrogen, Hydrogen, Japan, Low-Carbon, Uncategorized

Consortium a 341 square kilometer land block located in the Governorate of Dhofar for the development of a large-scale green ammonia project with a capacity of 1 million mt/y.

The project will install approximately 4.5 GW of wind and solar capacity coupled with battery storage and an approximately 2.5 GW state-of-the-art electrolyser. The produced hydrogen would then be supplied to an ammonia plant to be built in the Salalah Free Zone.

“Oman is strategically located between two key green hydrogen demand centers in Europe and Asia,” said Salim bin Nasser Al Aufi, Omani Minister of Energy and Minerals and Chairman of Hydrom. “This, in addition to our tier-1 infrastructure and logistics capabilities, have enabled us to leverage our first-mover advantage in the global hydrogen industry.”

EDF, a leading low-carbon energy producer with a score of 93% CO2 emissions-free generation, has had a presence in the Middle East for almost 30 years. The company’s EDF Renewables has secured over 7.5 GW of solar and wind farms in the region.

J-Power is a leading Japanese power generation company seeking to achieve zero net emissions from Japan’s power generation operations by 2050. Yamna is a UK-based global green hydrogen and derivatives developer and investor.

Thailand Studies RECs for Green Ammonia Production

Clean Ammonia, Green Ammonia, Green Hydrogen, Japan, Low-Carbon, Thailand

The Electricity Generating Authority of Thailand (EGAT) has signed a memorandum of cooperation with Électricitié du Laos, Chiyoda Corporation of Japan, and Mitsubishi Company Ltd. of Thailand to study the use of Renewable Energy Certificates (RECs) for importing renewable energy from Laos, officially the Lao People’s Democratic Republic, into Thailand.

The renewable energy, particularly hydropower generation, is expected to be used in potential locations across Thailand to produce green hydrogen and green ammonia. EGAT indicated that partnering with Laos, Chiyoda, and Mitsubishi will support regional clean energy development and will contribute to the goals of Carbon Neutrality and Net Zero Emissions in Thailand.

H2SITE Ammonia Cracker Receives Approval

Ammonia, Clean Ammonia, Hydrogen, Low-Carbon, Spain

H2SITE’s Ammonia to H2Power technology for cracking ammonia on board vessels has received Approval in Principle (AIP) from UK-based Lloyd’s Register. The cracking technology is expected to convert ammonia into fuel-cell quality hydrogen. The hydrogen produced from the process could be used for powering the vessel’s electrical power via fuel cell or could be consumed directly in a hydrogen internal combustion engine.

H2SITE is based in Spain, and its technology makes use of hydrogen-selective membranes that recover hydrogen continuously, resulting in a complete ammonia conversion and high efficiency without the use of additional gas separation technology. After completing a full technical validation, H2SITE plans to scale up the membrane reactors to the MW scale.

The AIP evaluated the design in compliance with Lloyd’s Register’s Rules and Regulations for the Classification of Ships using Gases or other Low-flashpoint Fuels. A risk assessment was conducted as well.

Phospholutions Inc. – Management Brief

Europe, Management Briefs, Phosphate, South America

Phospholutions Inc., a sustainable fertilizer technology provider based in State College, Pa.,announced on April 30 that James Ortíz has been hired as Chief Commercial Officer to lead the expansion of the company’s RhizoSorb® fertilizer technology platform on a global scale, with plans to expand in South America and Europe after finishing trials in India and Africa.

Ortíz brings more than 20 years of experience in the ag and commodity space, having previously held leadership roles at Trammo, Indagro, and Phibro, as well as several consultancies.

“We are excited to welcome James to our senior leadership team where he will play a pivotal role in expanding production capabilities and driving international market development initiatives,” said Hunter Swisher, CEO of Phospholutions. “With James on board, we aim to ensure that our technology benefits farmers all over the world.”

“I’m thrilled to join a team of committed professionals in further advocating its benefits to a market that requires greater efficiencies in a sustainable manner,” Ortiz said. “If you are in the phosphate fertilizer industry, please contact us as we have a unique value proposition for you with this next-generation technology.”

Pivot Bio – Management Brief

Management Briefs, Nitrogen

Microbial nitrogen provider Pivot Bio, Berkeley, Calif., on May 1 announced the appointment of industry veteran Chris Turner as Chief Commercial Officer. In this executive role, Turner will lead the company’s global growth agenda and commercial sales organization, reporting to CEO Chris Abbott.

Turner joins Pivot Bio from Bayer Corp., where he served as Head of the US Crop Science division, overseeing a team responsible for the company’s commercial operations nationwide. He managed the field sales teams and developed go-to-market strategies while delivering on business goals for crop protection, branded seed, and Bayer’s Climate FieldView. He also served as Senior Vice President of US commercial operations.

Before joining Bayer, Turner was with Monsanto Co. for more than 20 years, serving as a business leader, establishing go-to-market strategies, execution, and strategic partnership development. Prior to joining Monsanto, he was a district sales leader for FMC Corp.

“Chris is a highly regarded, results-oriented leader in the ag industry, and we couldn’t be more excited that he is joining our team,” Abbott said. “I am confident that his industry knowledge and commercial leadership experience will empower Pivot Bio in the US, our biggest market, and globally as we expand to new markets in the near future.”

Synsus Private Label Partners LLC – Management Brief

Management Briefs, Nitrogen, Texas

Specialty chemical producer Synsus Private Label Partners LLC, Houston, Texas, announced on May 1 that Mark Auchampach has been promoted to President of the company. Auchampach joined Synsus in 2018 and previously served as Chief Commercial Officer. In his new position, he will continue to lead the commercial organization and add responsibilities for technology development and fulfillment, reporting to Synsus CEO Greg Crawford.

“I am proud of the quality company we’ve been able to build at Synsus,” Auchampach said. “I look forward to contributing further to our mission of creating value for our customers’ brands.”

Synsus provides R&D innovation, specialty chemical manufacturing, and private-label custom packaging for the agricultural and turf & ornamental markets. With two manufacturing locations, the company specializes in specialty liquid fertilizers, nitrogen stabilizers, foliar micronutrients, colorants, adjuvants and surfactants, and other nutritional products.

DOC Releases New Preliminary Phosphate Duties

Morocco, News Briefs, Phosphate, Russia, U.S.

New preliminary phosphate duty decisions issued by the US Department of Commerce could eventually lead to lower countervailing duties from Russia’s Apatit, a wholly-owned subsidiary of PhosAgro, from 28.5% to 18.83% and higher for Morocco’s OCP SA, to 14.21% from 2.2%.

The assessment was for the calendar year 2022. A final decision will not be made until later in the year. The Mosaic Co. had requested the administrative reviews for Russia and Morocco in June 2023. However, in September 2023 it withdrew its review request for Russia’s Industrial Group Phosphorite LLC, a member of the EuroChem Group.

The DOC late last year in an annual administrative review had raised PhosAgro’s rate from 9.19% to 28.50% and decreased OCP’s from 19.97% to 2.12% (GM Nov. 3, 2023).