All posts by hlancey@bloomberg.net

Argentina Announces Removal of Urea, UAN Tariffs

Argentine Minister of the Economy Luis Caputo posted on social media that the country will eliminate existing tariffs on urea and UAN of 5.4% and 3.6%, respectively.

Argentina’s main urea supplier is Egypt, with which it enjoys a duty-free agreement. Algeria and Nigeria also supply urea to the country. Should tariffs be removed, Egyptian product will likely face more competition from alternate sources that are currently subject to tariffs.

The minister added that elimination of tariffs would bolster competition in the agricultural sector, and he noted a sharp reduction in the prices of inputs, which he attributed to the improving state of the economy. No timeline for the elimination of urea and UAN tariffs was made public.

Argentina has one domestic urea producer, Profertil, which is owned by Nutrien Ltd. and the state-owned energy company YPF SA. 

OCI Supplies Low Carbon NH3 to COMPO EXPERT

Amsterdam-based OCI Global is supplying low carbon ammonia to COMPO EXPERT, Münster, Germany, for production of its NPK fertilizers, with the first delivery taking place this week.

COMPO EXPERT will initially replace 25% of the ammonia it uses at its facility in Krefeld, Germany, with OCI’s low carbon product this year and has plans to further increase the ratio of OCI-supplied low carbon ammonia in its production over the next two years.

OCI sources the product from its Texas facilities via its ammonia terminal and distribution hub at the Port of Rotterdam. It guarantees a 60% lower carbon footprint than the industry standard. OCI has supplied COMPO EXPERT with ammonia for fertilizer production for more than a decade.

“We are significantly increasing our production of lower carbon ammonia, including at our Texas Blue Clean Ammonia facility currently under construction, which has capacity for an additional 1.1 million mt/y, and via our terminal in Rotterdam we will support the European decarbonization of existing industries and future energy and bunkering customers,” said Aviv Bar Tal, OCI Global Vice President, Nitrogen.

Fortescue, OCP Announce Green JV in Morocco

Fortescue Energy, headquartered in Australia, and OCP Group of Morocco have announced a 50/50 joint venture to produce green ammonia, hydrogen, and fertilizer products in Morocco that will serve Morocco, Europe, and other international markets.

The joint venture will encompass four projects that include integrated production of green fertilizer and ammonia from renewable energy sources and electrolysis, the manufacturing of green technology and equipment, and an R&D Hub located by the Mohammed VI Polytechnic University near Marrakesh.

Dr. Andrew Forrest, Fortescue Executive Chair and Founder, cited Morocco’s prospective wind and solar resources, large coastlines, and proximity to Europe and the Americas as why Morocco will be a major player in the energy transition.

EverWind Completes FEED for Nova Scotia Plant

EverWind Fuels Co., Halifax, Novia Scotia, announced that it has completed its front-end engineering design (FEED) study on Phase 1 of its green hydrogen to green ammonia facility in Point Tupper, Nova Scotia.  The FEED was completed by Black & Veatch (GM Dec. 9, 2022).

Phase 1 of the Point Tupper Project will use PEM electrolyzers to separate water from the nearby artificial Landrie Lake, using renewable electricity generated by wind power. The project is expected to produce 240,000 mt/y of green ammonia. Production is expected to begin in 2026.

IFFCO, ACME Ink Clean Ammonia Deal in India

Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) has signed an initial deal with ACME Cleantech Solutions in Gurugram, India, to purchase 2 lakh tonnes of ammonia per year – equivalent to roughly 200,000 mt/y – produced by renewable energy.

The ammonia will be manufactured at ACME’s plant in Gopalpur, Odisha, which will have a total production capacity of around 1.3 million mt/y of renewable ammonia when at full capacity.  The ammonia purchased by IFFCO will be used at IFFCO’s DAP Paradeep Unit in Odisha and at its DAP/NPK Kandla Unity in Gujarat.

ACME will retain a green credit in the form of an Internationally Transferable Mitigation Outcomes (ITMO) under Article 6 of the Paris Agreement from the sale of renewable-based ammonia. Each ITMO corresponds to one metric ton of carbon dioxide equivalent that has been reduced or removed. The ITMO can be traded with another country.

G2 Ocean Expands Ammonia/Methanol-Ready Fleet

G2 Ocean, the world’s largest shipping operator in the Open Hatch segment, announced this week that its Gearbulk Holding AG shareholder has entered into an agreement with shipyard CSSC Huangpu Wenchong Longxue for two new 82,300 deadweight ton (dwt) ammonia/methanol-ready vessels, with an option to purchase two more.

The first two vessels will be delivered in 2027 and will contribute to the company’s pledge of becoming net zero by 2050. G2 Ocean currently operates approximately 120 vessels and earlier added two ammonia-ready 82,300 dwt Open Hatch vessels to its fleet in September 2023.

“This contract for four newbuildings marks a significant milestone for Gearbulk as these vessels are set to be the largest and most efficient in the company’s history,” said Kristian Jebsen, CEO of Gearbulk Holding AG. “With this investment, we are not only enhancing our operational efficiency but also reaffirming our dedication to meeting the evolving needs of global trade.”

G2 Ocean is a joint venture between Gearbulk and Grieg Star Group AS, and is headquartered in Bergen, Norway, with regional hubs located in Rio de Janeiro and Singapore.

Intrepid Potash Inc. – Management Brief

Intrepid Potash Inc. announced on April 9 that company CEO Bob Jornayvaz was involved in an accident on April 6 while playing in the US Open Polo Championship. Local news reports from Wellington, Fla., said Jornayvaz was thrown from his horse and transported by helicopter to the St. Mary Medical Center, where he is currently receiving treatment. Jornayvaz was identified as the owner of the Valiente polo team.

“Our thoughts are with him and his family,” Intrepid said in a statement. “We will provide updates as more information becomes available.”

In other company news, Intrepid CFO Matthew Preston has decided to stay with the company. As previously reported, Preston had informed Intrepid that he would be leaving his position to pursue another business opportunity, effective April 12, 2024 (GM April 5, p. 26). However, after further discussion and negotiation, Preston notified Intrepid on April 10 of his decision to stay with the company, continuing in his role as CFO, including as principal financial officer under Securities and Exchange Commission rules and regulations.

As part of his decision to stay with Intrepid, Preston will receive an increase in annual base salary to $390,000 and a grant of restricted stock valued at $300,000, which vests in three equal annual installments beginning on April 10, 2025, subject to continued service with the company. Other than these changes, Preston’s compensation with the company remains as previously disclosed.

The Intrepid Board also reported on April 5 that Cris Ingold has been promoted to Chief Accounting Officer of the company, effective April 12, 2024. In this position, he will serve as the company’s principal accounting officer under SEC rules and regulations. Ingold, 59, has served as Intrepid’s Corporate Controller since November 2019. Previously, he served in successively more senior accounting roles since joining the company in 2011.

Before joining Intrepid, Ingold worked in a variety of accounting roles at various public companies, and also at Deloitte & Touche LLP serving both public and private audit clients in a wide variety of industries. He is a certified public accountant and a member of the American Institute of Certified Public Accountants.

Debris Slows Baltimore Cleanup

Two weeks after Baltimore’s Francis Scott Key Bridge collapsed, the steel structure is still strewn across the massive cargo ship that struck it, while state and federal officials face a multitude of challenges, including clearing the harbor channel to restore port access, investigating what happened, and securing funds to rebuild the bridge.

President Joe Biden has pledged the federal government would pay for the bridge recovery and rebuild, and Maryland’s congressional delegation met with the administration this week to build support for that project. Officials warned that addressing those challenges will take time and will include battles around liability for the foreign ship and a lengthy safety investigation.

The US Army Corps of Engineers set a timeline for opening the Port of Baltimore to normal capacity by the end of May as they work to establish another temporary channel. The operation started removing containers from the cargo ship on April 7, but most remain. The Unified Command has opened two temporary channels and is working on opening a third by the end of the month that would deal with the majority of traffic into the port of Baltimore.

Lawmakers say they will pursue full federal funding for the recovery. Sen. Ben Cardin (D-Md.) said this week that he will soon introduce legislation with his delegation to ensure 100% of the federal cost share. Maryland Gov. Wes Moore has said all options – including private partnership and tapping capital markets – will be considered to finance reconstruction of the bridge if the federal government is unable to cover the costs as originally promised.

The Singapore-flagged cargo ship Dali lost power and struck the bridge on March 26, killing several workers on the span and bringing a halt to marine traffic at the Port of Baltimore that relies on the channel. The container ship and workers on it have remained in place since.

The National Transportation Safety Board is on the vessel, still collecting information, and the agency’s preliminary report is expected in the first week of May, NTSB Chair Jennifer Homendy told Congress on April 10.

Lieutenant General Scott Spellmon of the US Army Corps of Engineers told reporters they would be working on the heavy lifting of steel and concrete in the weeks ahead as the channel has 9,000 tons of steel at the bottom and 3,000 tons of concrete.

Spellmon said he told Biden, who got an aerial tour of the wreckage on April 5, that part of the bridge atop the ship weighs 5,000 tons, the equivalent of a dozen Air Force Ones fully loaded with gasoline. More than 50 divers have been in the water over the past two weeks and officials are looking to stabilize the vessel before attempting to move it.

Removing some of those containers is going to alleviate “a lot of that pressure and allow the ship to become a little bit lighter,” Coast Guard Commander Roberto Concepcion said, noting that there is still a lot of debris under the water line. “Making the ship a little bit lighter allows for us to do additional surveys underneath the waterline and hopefully free up the vessel,” he added.

Man Dies from NH3 Leak in Indiana

An anhydrous ammonia leak on April 6 at a Nutrien Ag Solutions facility near Warren, Ind., has claimed the life of one man, according to local news reports.

Emergency response teams arrived at the site around 9:30 a.m. and found a large plume of ammonia coming from behind a building at the facility. Initial reports said one employee of the company was not accounted for. Investigators conducted a search and reportedly found 72-year-old Richard Clark of Ossian, Ind., dead near a double anhydrous ammonia “pony” trailer.

The Warren Volunteer Fire Department and Parkview Huntington Hospital EMS were first on the scene before investigators contacted the Indiana Department of Environmental Management (IDEM), according to local news reports.

An investigation into the cause of the leak is underway by the Indiana Department of OSHA. An autopsy report completed by the Northeast Indiana Forensic Center revealed that Clark died of asphyxia, due to anhydrous ammonia exposure. The death was ruled as an accident.

Iowa Senate Bill Shields Roundup from Lawsuits

The Iowa Senate on April 2 approved a bill that would grant immunity to pesticide companies from civil lawsuits related to damages caused by US EPA-approved pesticides. Bayer, which produces Roundup with the active ingredient glyphosate, lobbied for the bill and argued that Americans should be able to trust the EPA label as enough protection.

Bayer also argued that it may be unable to continue producing Roundup if it keeps losing money from lawsuits. The Iowa Farm Bureau and Iowa Corn Growers Association also favor the legislation. The bill is now before the Iowa House of Representatives and it is unclear whether it will have enough support to pass.

Tommy Hexter, a guest columnist for The Des Moine Register, who is an organizer for the Iowa Farmers Union and a Democrat running for the Iowa House, noted that it took EPA some 70 years to ban asbestos and that international bodies such as the International Agency for Research on Cancer has found glyphosate as “probably carcinogenic to humans.” He added that less than 1% of Bayer’s lawsuits are based in Iowa.

Hexter, along with state Senator Janice Weiner (D-Iowa City), both noted that Iowa has the fastest growing cancer rate in the nation and the largest use of Roundup. Weiner wants the legislature to spend the remaining weeks of its session exploring why the Iowa cancer diagnosis rate is among the highest in the country.

In addition to Iowa, Idaho, Missouri, and Florida are also considering similar bills, according to reports from Civil Eats. Additionally,CropLife America is seeking to pass a federal law barring states from passing their own laws that restrict pesticide use based on risks.