All posts by mickeybarb@charter.net

Dutch Nitrogen Plant Needed for Imported Gas Processing Faces More Delays

A new nitrogen facility under construction in the Netherlands and which is needed for gas processing is facing further delays, according to a Bloomberg report, citing two unnamed sources familiar with the matter.

The late start of the project at Zuidbroek in the north of the country will complicate the handling of natural gas in the Netherlands at a time when gas prices are at record levels due to concerns about Russian gas flows to Europe.

According to the report, natural gas imports from producers such as Norway have to be blended with nitrogen before they can be used by Dutch consumers. Nitrogen is also needed to re-gasify LNG cargoes, which the Netherlands is looking to in order to reduce its dependence on Russian gas.

The start of the nitrogen plant at Zuidbroek has faced repeated delays, with the start of production earmarked for September in a May statement by Dutch state gas company Gasunie Nederlands NV, which commissioned the plant.

The current plan by Gasunie is for one of the three air separation units at Zuidbroek to start operating by the end of October following the completion of tests, according to the Bloomberg report.

But the report also cited the unnamed sources reporting that Air Products & Chemicals Inc., which is leading the project, is not on track to meet that deadline. Air Products & Chemicals had not responded to Bloomberg enquiries as of Aug. 31.

Gasunie told Bloomberg the Netherlands has other nitrogen facilities that could process imported natural gas should there be further delays at Zuidbroek.

Yara, Northern Lights Sign CO2 Deal

Yara International ASA, Oslo, and Northern Lights JV DA, the transport and storage part of the Norwegian government’s Longship project, have inked an agreement on the main commercial terms to transport CO2 captured from the Yara Sluiskil plant in the Netherlands and permanently store it under the seabed off the coast of western Norway.

When the final contractual details are firmed up, the deal will be the first ever cross-border CO2 transport and storage agreement, Yara said in an Aug. 29 statement. The first mt of CO2are expected to be shipped from early 2025.

From early 2025, 800,000 mt of pure CO2 will be captured, compressed, and liquefied in the Netherlands, and then transported to the Northern Lights’ store at 2,600 meters under the seabed off the coast of Øygarden.

Yara said the agreement would set the standard for other industrial companies across Europe looking to use Northern Lights – and other emerging CO2 transport options and stores in the North Sea – as a key part of their decarbonization strategies.

Yara is Northern Lights’ first commercial customer.

Northern Lights is developing an infrastructure to transport CO2 from industrial emitters by ship to a receiving terminal in western Norway for immediate storage before being transported by pipeline for permanent storage in a geological reservoir 2,600 meters under the seabed. The facilities are under construction, and operations are scheduled to start in 2024.

The company is an incorporated general partnership with shared liability owned by Norwegian state-owned energy company Equinor, Shell, and France’s TotalEnergies.

Longship is the Norwegian government’s full-scale carbon capture and storage project.

JPMC to Tender for New Ammonia Tanks; Increased Phos Acid Storage Assessed

Jordan Phosphate Mines Co. (JPMC), Amman, is preparing to float a tender for installing ammonia tanks in the company’s industrial complex in Aqaba, to provide “the highest safety measures in accordance with international standards,” according to Jordan’s Petra news agency, citing the company.

The $40 million project will be implemented over the course of two years. JPMC is additionally examining the possibility of converting the existing ammonia tanks into phosphoric acid tanks to enable the company to increase the storage of phosphoric acid to meet the expansion of production in order to increase foreign sales of the acid.

EuroChem Acts to Take Heringer Private

Fertilizantes Heringer SA, Viana, Brazil, on Aug. 26 announced that it has been informed by its controlling shareholder, EuroChem Group AG, Zug, Switzerland (GM April 1, p. 28), that the company has decided to proceed with plans to the request registration of a public offering of acquisition of up to all of the company’s common shares.

The minority shareholders are to receive equal treatment to that given to its former controlling shareholders. EuroChem plans to cancel Heringer’s registration as a publicly-held company and delist its shares.

EuroChem closed the deal to buy a controlling 51.48% stake in Heringer on March 28 (GM April 1, p. 28). The deal was valued at R$554.56 million (approximately US$116.4 million in exchange rates at the time), half of which was being paid in cash in Brazilian currency at closing.

Mosaic Volumes, Phosphate Revenues Drop in July

The Mosaic Co., Tampa, reported lower sales volumes for all three major segments in July. While revenues were up for Potash and Mosaic Fertilizantes, they were down for Phosphates.

Potash July 2022 July 2021
Sales Volumes (000 mt) 579 629
Revenues in millions $391 $191
Phosphate July 2022 July 2021
Sales Volumes (000 mt) 280 597
Revenues in millions $295 $407
Mosaic Fertilizantes July 2022 July 2021
Sales Volumes (000 mt) 921 1,197
Revenues in millions $848 $585

India’s Avaada Group to Invest $5 B in Green Ammonia Plant in Rajasthan

Indian renewable energy producer Avaada Group signed an initial pact on Aug. 24 to invest 400 billion rupees ($5 billion) in a 1 million mt/y green ammonia project at Kota in the country’s northern state of Rajasthan, Bloomberg reported, citing the company.

India unveiled a policy earlier this year to promote production of green hydrogen and green ammonia, with an ambition to become a global hub of manufacturing and exports of these commodities. The world’s third-largest emitter of greenhouse gases will need such projects for the transition to clean energy for its own heavy industries, as it seeks to turn carbon neutral by 2070.

The policy announced in February offers investors benefits such as free inter-state transmission of renewable power, which will be used for making green hydrogen and green ammonia. The government said it plans to offer more “sweeteners” to encourage investors.

The government’s push has drawn investment commitments for billions of dollars from some of the largest conglomerates in the country, including the Adani Group and Reliance Industries Ltd.

Brazil Regulator Approves Nutrien Deal to Buy Ag Retailer Casa Do Adubo

Brazil antitrust regulator the Administrative Council for Economic Defense (CADE) reported that it has approved Nutrien Ltd.’s plan to acquire agricultural retailer Cada Do Adubo SA, without restrictions.

Nutrien announced the deal in July (GM July 22, p. 1). It includes 39 retail locations under the brand Casa do Adubo and 10 distribution centers under the brand Agrodistribuidor Casal, all located in the states of Acre, Bahia, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais, Pará, Rio de Janeiro, Rondônia, São Paulo, and Tocantins.

“The acquisition expands our footprint in Brazil from five states to 13 and supports growers in a key region of the world that will increasingly be relied on to sustainably increase crop production and feed a growing population, especially with the current global food insecurity challenges,” said Ken Seitz, Nutrien President and CEO in July.

Nutrien now expects to surpass its stated target of US$100 million of adjusted EBITDA in Brazil by 2023.

Qatar Plans Giant Blue Ammonia Plant

Qatar plans to build a $1 billion plant to make up to 1.2 million mt/y of blue ammonia, according to Bloomberg. QatarEnergy signed agreements on Aug. 31 with Industries Qatar QSC and its subsidiary, Qatar Fertiliser Co., to develop what they call the industry’s first world-scale and largest blue ammonia plant, which is being called “Ammonia-7.”

Germany’s ThyssenKrupp AG and Consolidated Contractors Co. in Greece have been awarded a contract for the plant.

About 1.5 million mt of carbon dioxide will be captured and sequestered from the ammonia-making process per year once the blue ammonia plant starts operating in first-quarter 2026. Qatar aims to develop its carbon capture and storage facilities so that it can sequester as much as 11 million mt/y a year by 2035.

Brazil Plant Sale Enters Binding Phase

Brazil’s state-owned Petroleo Brasileiro (Petrobras) on Aug. 29 announced that it has entered the binding phase regarding the full sale of the Nitrogen Fertilizers Unit III (UFN-III). Potential buyers qualified for this phase have received a process letter with detailed instructions on the divestment process, including guidelines for carrying out due diligence and for submitting binding proposals.

Petrobras has made two attempts to sell UFN to Russia’s Acron Group, but both fell through (GM April 29, p. 30; Nov. 27, 2019). The plant has reportedly been attracting the attention of Yara International ASA, EuroChem Group AG, and two Brazilian companies – chemical and fertilizer producer Unigel Group and steel and iron ore producer Cia Siderugica Nacional SA (CSN) (GM Aug. 5, p. 36).

UFN-III is an industrial unit of nitrogen fertilizers located in Três Lagoas, in the state of Mato Grosso do Sul. The construction of UFN-III began in September 2011, but was interrupted in December 2014, with physical progress of about 81%. One hard-and-fast requirement for the buyer is reportedly a commitment to complete UFN-III’s construction. Upon completion, the unit will have a projected urea and ammonia production capacity of 3,600/mt/d and 2,200/mt/d, respectively.

Verde Commissions Plant 2

Verde AgriTech, Belo Horizonte, Brazil, on Aug. 31 reported that its second production plant, Plant 2, has been commissioned and is now ramping production up to 1.2 million mt/y of multi-nutrient potassium product K Forte®, sold internationally as Super Greensand®.

“Four years ago almost to the day, we were commissioning Verde’s Plant 1, which has since then run practically continuously in order to meet the growing demand for Verde’s products,” said Cristiano Veloso, Verde’s Founder and CEO. “It is therefore timely to rev-up our Plant 2 at a moment when Brazilian potash demands peak and our products have established a track record of delivering optimal agricultural results, because the combined total capacity of Plants 1 and 2 will establish Verde as Brazil’s largest potash producer.”

Plant 1 operates with a capacity of 600,000 mt/y. With Plant 2’s additional capacity of 1.2 million mt/y after ramp up, Verde says its overall production capacity will be 2 million mt/y. Plant 2 is already undergoing expansion to achieve 2.4 million mt/y of capacity later in third-quarter 2022. The company says this addition will take overall capacity to 3 million mt/y.

Verde’s 2022 guidance provides for sales of 1 million mt, with revenue of C$109.09 million, EBITDA of C$49.06 million, and net earnings per share of C$0.87. The 2023 guidance provides for sales of 2 million mt.