All posts by mickeybarb@charter.net

Austrian Farmers Oppose Sale of Borealis Nitrogen; ÖBAG Disagrees

Austria, News, News Briefs, Nitrogen

The Lower Austrian Farmers’ Association, with its Chairman and Deputy Governor Stephan Pernkopf, are among those strongly opposed to the sale of the Borealis Nitrogen business (GM June 3, p. 1). At a press conference on Sept. 14, the association made a strong statement in the fight against what they see as the highly controversial deal.

Pernkopf argued farmers urgently need fertilizers for the production of food, and asked how state-owned holding company Österreichische Beteiligungs AG (ÖBAG) intends to rule out a threat to the security of supply and empty shelves.

However, on Sept. 14 ÖBAGdispensed with the farmers objections, saying their arguments “were not plausible,” according to a Reuters report, adding that in its view, the buyer Czech Republic’s chemicals and fertilizer company Agrofert had given a location guarantee for the Austrian city of Linz.

Austrian oil and gas group OMV AG is selling the Nitrogen business of its majority-owned (75%) Borealis AG subsidiary to Agrofert. It announced in early June that it had received a binding offer from Agrofert for the acquisition of the Nitrogen business, which includes fertilizer, melamine, and technical nitrogen products (GM June 3, p. 1). The offer values the business on an enterprise value basis at €810 million (approximately $809 million at current exchange rates).

Zimbabwe’s Zimphos Launches Blending Plant, Sable Chemicals Set to Restart AN Production

Africa, Ammonium Nitrate, News, News Briefs

Zimbabwe Phosphates Industries (Zimphos), the country’s sole phosphate fertilizer producer, on Sept. 5 inaugurated its first fertilizer blending plant with capacity to produce up to 200,000 mt/y, in time to supply product for the 2022/23 summer cropping season.

Some $1.1 million has been invested in the new blending plant at Msasa, according to local media, citing Zimphos’ direct owner, Chemplex Corp. Ltd. Zimphos is wholly owned by the Zimbabwe government through Chemplex Corp., which is in turn is owned 100% by the country’s Industrial Development Corp.

Further investment is ongoing for a second fertilizer blending plant, which, according to some reports, is expected to be installed in October, as well as in a new phosphate beneficiation plant at the Chemplex-owned Dorowa Minerals’ Dorowa Mine. The mine is Zimbabwe’s only phosphate mine.

Zimphos has existing production capacity for 200,000 mt/y of SSP at Harare and 40,000 mt/y of TSP at Msara, according to Green Markets database.

In addition to phosphate fertilizers, Zimphos is Zimbabwe’s sole producer of aluminium sulfate for municipal water treatment, sulfuric acid, and other industrial chemicals.

Meanwhile, Kwekwe-based ammonium nitrate (AN) manufacturer Sable Chemicals Industries Inc. the country’s sole AN producer, expects to resume operations during this month after halting production early this year for refurbishment, according to a report by Zimbabwe’s Chronicle.

The restart has been timed to meet the needs of the 2022/23 summer cropping season, and Sable expects to produce about 120,000 mt of AN in the 2022/23 farming season, according to the report.

The refurbishment project is aimed at increasing the company’s AN production capability to about 200,000 mt/y of AN, up from 50,000 mt/y, in a move to meet Zimbabwe’s AN requirements and reduce imports. According to the report, the refurbishment is expected to be fully completed by December.

Sable’s AN output in recent years has been well below installed capacity due to apparent technical issues and limited ammonia availability (met by own production and imports).The company has nominal AN production capacity of 250,000 mt/y at Kwekwe with two ammonia production units with nominal ammonia capacity of 110,000 mt/y each, according to Green Markets’ database.

The company secured an $11 million loan from Africa Export and Import Bank (Afreximbank) last year for the refurbishment project.

The projects are part of the Zimbabwe government’s Five-Year “Fertilizer Import Substitution Roadmap,” implemented in 2020 for the years to 2024, designed to help reduce the country’s import bill, put at around $280 million currently.

According to the Chronicle report, Zimbabwe in a good season needs some 600,000 mt of fertilizers, of which basal compound fertilizers constitute roughly 350,000 mt of the total requirement and AN 250,000 mt.

Indorama in Talks to Mine Phosphate in Uzbekistan

Asia, News, News Briefs, Phosphate Rock, Southeast Asia

Indorama Holdings BV, a wholly-owned subsidiary of Singapore-based Indorama Corp., has held talks with the Uzbekistan government to implement a project to mine phosphate rock at the country’s Dzheroy-Sardara phosphate deposit, according to a fertilizerdaily report.

The mining project is understood to be part of Indorama’s ongoing project to modernize the Kokand Superphosphate Plant, based in Uzbekistan’s eastern city of Kokand.

Indorama Holdings acquired a 95.4% stake in the plant in 2019 through a government privatization process. In 2020, the company secured a $12.5 million loan from the International Finance Corp. (IFC), a member of the World Bank Group, to finance the modernization project (GM July 2, 2020).

The modernization program is aimed at restarting the plant with a production capacity of 350,000 mt/y of super phosphate and 290,000 mt/y of ammoniated super phosphate, according to the JSC Indorama Kokand Fertilizers and Chemicals’ website.

The plant, built in 1935, had been expected to restart in the first quarter of 2021. It originally was designed to process phosphate from the Dzheroy-Sardara deposit.

At the time Indorama’s participation in the Kokand Superphosphate Plant was first announced, plans for a second-phase project were reported to also include the production of other mineral fertilizers not previously produced in Uzbekistan, such as dicalcium phosphate and potassium sulfate (GM Jan. 9, 2017).

ENGIE, Yara Proceed with Renewable Hydrogen Plant in Australia

Ammonia, Australia, France, Hydrogen, News, News Briefs, Norway

French energy major ENGIE said it has taken a final investment decision to build a renewable hydrogen plant with a 10 MW electrolyzer to provide feedstock into Yara International ASA’s existing ammonia operations near Karratha in the Pilbara region of Western Australia. Construction is scheduled to start in November.

Yara Clean Ammonia has collaborated with ENGIE to develop the so-called Yuri plant, which will support the production of renewable ammonia at the Yara plant.

Yuri is targeted to start operations in 2024. The first phase will produce up to 640 mt/y of renewable hydrogen for Yara, and a 100% offtake contract already is in place between the two parties.

ENGIE said it has reached a deal with Mitsui & Co. Ltd., through which Mitsui will acquire a 28% stake in the joint venture company for the Yuri project, subject to the satisfaction of certain conditions. ENGIE and Mitsui intend to operate the Yuri project through this jv company.

As announced in 2021, the Yuri project is being developed with the support of a A$47.5 million (approximately US32 million at current exchange rates) grant from The Australian Government’s ARENA Renewable Hydrogen Deployment Fund and a A$2 million grant by the Western Australian Government’s Renewable Hydrogen Fund (GM May 7, 2021).

A consortium of Technip Energies and Monford Group has been awarded the Engineering, Procurement, Construction, and Commissioning (EPCC) contract for the renewable hydrogen plant.

This initial first phase would be key to enable the facility to become the “Pilbara Hydrogen Hub,” building on the existing export infrastructure, said Yara.

Lifosa Stops Production, Aims to Resume in November

Ammonia, Lithuania, News, News Briefs, Phosphate

Lithuanian phosphate fertilizer producer AB Lifosa, a subsidiary of EuroChem Group AG, halted production at Kėdainiai on Sept. 14 due to a shortage of ammonia, the country’s Postedia reported.

However, the company expects to reach an agreement with ammonia suppliers on its ammonia requirements, and hopes to be able to resume operations in November, according to the report.

Lifosa’s plans to halt operations in mid-September were announced on Sept. 8 (GM Sept. 9, p. 28).

Uniper, Vesta Plan Green Ammonia Hub for the Netherlands

Germany, Green Ammonia, News, News Briefs, Northwestern Europe

Uniper Global Commodities SE, Dusseldorf, and the Dutch Vesta Terminals BV, Ulrecht, The Netherlands, on Sept. 12 signed a Memorandum of Understanding to evaluate the feasibility of refurbishing and expanding an existing storage facility at Vlissengen, the Netherlands, with the aim to create the first green ammonia hub, “Greenpoint Valley,” in Northwest Europe.

Uniper intends to book capacity in the terminal to create an entry point for the growing green ammonia and hydrogen activities within the Uniper group. Developing the green ammonia and hydrogen markets will also further strengthen security of supply in Europe.

The project accompanies Uniper’s efforts to create several access points for green energy into Europe and will be pursued in parallel to its ongoing Wilhelmshaven ammonia terminal project. Uniper is not only building the first LNG import terminal at Wilhelmshaven in Germany, but also planning an import terminal for green ammonia. The Wilhelmshaven site will become a green energy hub.

Vesta Terminals in Vlissingen, currently have 60,000m³ of refrigerated storage capacity built for ammonia and as a future hub will be able to handle initial throughput capacity of 0.96 mt/y. The terminal is located for the supply of green ammonia by seagoing vessels reloading into barges and rail tank cars. In a second phase the throughput capacity of the facility can be expanded to 1.92 million mt/y and the terminal will be connected to the Dutch hydrogen pipeline network. The commissioning and start of operations is envisaged for beginning of 2026.

Uniper is an international energy company and operates in more than 40 countries. The company plans for its power generation business in Europe to be carbon-neutral by 2035.

Vestaoperates in Europe with terminals in Belgium, Netherlands, and Estonia. It is a 50:50 joint venture between Mercuria Energy Asset Management BV and Sinomart KTS Development Ltd. Mercuria Energy Asset Management BV is affiliated to Mercuria Energy Group Ltd., an independent energy and commodity group.

Sinomart KTS Development Ltd. is a wholly-owned subsidiary of Sinopec Kantons Holdings Ltd. which is a storage and logistics company listed at the Hong Kong Stock Exchange.

Aqua-Yield Announces $23 M Funding

News, News Briefs, Pacific N.W., Specialty

Nanoliquid ag input company Agua-Yield, Sandy, Utah, on Sept. 13 announced the close of its Series A investment round of $23 million. The company will leverage the funding to accelerate the global adoption of its nanoliquid solutions.

“The patented nano-based technology acts as a catalyst to traditional liquid agricultural fertilizers and crop protection products,” said CEO and Co-Founder Clark T. Bell. “This tech works with all traditional ag inputs by enhancing plant absorption of nutrients and efficacy of crop protectants. With our suite of 16 commercially available products, we have an answer for nearly every crop.”

“Aqua-Yield makes synthetic fertilizers and chemicals more efficient, increasing nutrient uptake and decreasing synthetic fertilizer use, resulting in more environmentally efficient and profitable farms,” said David Smith, Chief Strategy Officer for Larry H. Miller Co. (LHM), Sandy, Utah, an Agua-Yield investor.

The company said its products, which require just 2-6 ounces of its product per acre, are currently used on four million acres of farms and in more than nine countries. It said that between 2014-2021, it conducted more than 750 field trials that resulted in an average 3:1 return on investment for growers.

Since 2014, Aqua-Yield said its solution has reduced farmers’ use of micronutrients by up to 80% and use of macronutrients by up to 50%, increasing nutrient uptake, germination rates, crop yields, and growth cycles.

The round was led by LHM Co., with participation from Penny-Newman Grain Co., Fresno, Calif., and San Leonardo, an investment affiliate of The John and Katie Hansen Family Foundation, Tiburon, Calif.

Cinis Reports Loan for First SOP Plant

News, News Briefs, Specialty, Sulfate of Potash, Sweden

Swedish green tech company Cinis Fertilizer, Lund, which plans to build its first production facility for fossil-free sulfate of potash (SOP) in Köpmanholmen, south of Örnsköldsvik in Sweden (GM May 20, p. 31), reported that it has signed a seven-year loan agreement of SEK 300 million ($28 million) with Nordea, a Nordic bank, and the Swedish Export Credit Corp. (SEK), which is guaranteed to 80% by the Swedish Export Credit Agency (EKN). The loan covers approximately half of the investment cost for the first production facility.

The facility will be powered by fossil-free electricity, and the company said it will be the first in the world to produce a circular mineral fertilizer from waste products from pulp mills and electric car battery production. The first plant is expected to produce 100,000 mt/y of SOP and be commissioned in second-half 2023. A second plant, expected up in mid-2025, would produce 200,000 mt/y.

Germany’s K+S Group has signed a letter of intent for future cooperation for the production of SOP (GM July 1, p. 1). K+S would supply Cinis with potassium chloride, and in return K+S could purchase up to 600,000 mt/y of SOP from Cinis.

K+S has the intention to buy the full SOP capacity from Cinis’s third and fourth production facilities, starting from 2026. The two production facilities are expected to reach full production of 600,000 mt/y of SOP in 2028.

Disbursement of the loan is subject to conditions such as the company securing the remaining capital for the first production plant and obtaining an approved environmental permit.

SEK is a state-owned company that finances Swedish export companies, their subcontractors, and foreign customers on commercial and sustainable terms.

EKN promotes Swedish exports by insuring the risk of not being paid in export transactions.

Koch Minerals & Trading Invests in Compass Lithium Project

Lithium, News, News Briefs, Pacific N.W., Southern Plains

Compass Minerals, Overland Park, Kan., announced on Sept. 14 that Koch Minerals & Trading LLC (KM&T) has agreed to make a $252 million investment, through the purchase of common stock, to support the phase-one development of Compass’s previously announced 2.4 million mt lithium carbonate equivalent (LCE) resource on the Great Sale Lake in Utah.

“We are pleased to welcome KM&T as our investment partner and look forward to leveraging their deep expertise and proven track record of building value,” said Kevin S. Crutchfield, Compass President and CEO. “Securing funding to aggressively pursue phase one of our lithium growth opportunity has been an important focus for our management team. This strategic investment will help drive our lithium project forward, strengthen our balance sheet, and enhance execution capabilities across our entire platform.”

Compass said approximately $200 million of the proceeds from the investment are expected to be used to advance the first phase of the company’s sustainable lithium development project, and the remaining $52 million will be used to reduce debt.

Compass said the $200 million investment represents approximately 75% of the total phase-one funding needs, including the full funding required through calendar year 2024 toward the construction of a commercial scale, direct lithium extraction (DLE) and lithium conversion plant at the company’s Ogden, Utah, solar evaporation facility.

Under terms of the agreement, KM&T – which is a subsidiary of Wichita-based Koch Industries – has agreed to purchase 6,830,700 shares of Compass common stock at a price of $36.87 per share. The issuance price represents a 6.2% discount to the closing price and an 8.0% discount to the five-day volume weighted average price as of Sept. 13, 2022.

After the transaction closes, KM&T will own approximately 17% of Compass’ outstanding shares of common stock and will have the ability to appoint two additional members to the Compass board of directors. As part of the agreement, the companies will also explore value creation opportunities across Compass’ broader operational platform by leveraging the capabilities of Koch’s operating subsidiaries in the areas of supply and procurement of fuel and raw materials, freight and logistics synergies, and project engineering and development support.

“KM&T seeks partners like Compass Minerals to apply its bulk commodity capabilities to create greater value for customers, communities, and shareholders,” said Jon Chisholm, KM&T Vice President. “KM&T will also be working closely with Compass Minerals and other Koch companies to unlock a significant lithium resource at Compass Minerals’ Great Salt Lake facility and become one of the first major US-based lithium producers.”

Compass estimates phase-one development capital of $262 million, and reported on Sept. 14 that phase-one is expected to yield approximately $626-$985 million in after-tax net present value (NPV) and an after-tax internal rate of return (IRR) of 28-36%. Compass on Sept. 14 also announced the selection of EnergySource Minerals, San Diego, Calif., as the project’s direct lithium extraction (DLE) technology provider.

Petrobras Denies Report of Fertilizer Unit Sale

Ammonia, Brazil, Europe, News, News Briefs, Nitrogen, Urea

Brazil’s Petrobras has denied a Reuters report that it is on the verge of selling its Nitrogen Fertilizer Unit-III (UFN-III) to Norway’s Yara International, according to Bloomberg, citing a statement by Petrobras that the information is “untrue” and that the sales process is still in the binding stage and has not reached the stage to receive proposals.

The earlier report was that Yara would pay less than $100 million for the facility and the deal would be announced within a few weeks.

Yara, however, along with EuroChem Group AG, Brazil’s chemical and fertilizer maker Unigel, and steel and iron ore producer Cia Siderugica Nacional SA, have been previously reported as being interested in the plant (GM Aug. 5, p. 36).

UFN-III, in Três Lagoas, in the state of Mato Grosso do Sul, has been under construction since 2011, and at last report was 81% complete. Upon completion, the unit will have a projected urea and ammonia production capacity of 3,600 m/d and 2,200 m/d, respectively. The buyer is expected to complete the plant.