All posts by mickeybarb@charter.net

Bakelite Synthetics Completes Acquisition of Georgia-Pacific Chemicals

News, News Briefs

Bakelite Synthetics, Atlanta, on May 27 announced the completion of its acquisition of Georgia-Pacific’s Chemicals business, which is a part of Georgia-Pacific Inc., Atlanta. No transaction amount was reported. Georgia-Pacific is owned by Koch Industries Inc., Wichita.

Bakelite said Georgia-Pacific Chemicals brings with it complementary resin and formaldehyde technology and end markets in the building materials, transportation, industrial, chemical intermediate, and specialty resins space. This acquisition includes 11 chemical facilities employing approximately 600 people in the U.S. and South America. It also includes an R&D facility in Decatur, Ga.

“We are excited about the opportunities that will result from the combined strengths of the two companies,” said J.P. Aucoin, CEO of Bakelite Synthetics. “This acquisition enables us to deliver greater value to our customers through a broader product offering and expanded geographic reach. It also enables us to deliver on significant organic growth with the strong tailwinds in U.S. residential construction. Lastly, we look forward to welcoming Georgia-Pacific Chemicals’ associates to Bakelite Synthetics as we bring both organizations together with a rich history of customized product development and customer service.”

The company’s new headquarters will be based in Atlanta. The combined company will consist of approximately 1,500 associates and 21 manufacturing sites operating in 10 countries.

Georgia-Pacific said the Chemical business is highly complementary to Bakelite’s existing platforms in the U.S. and Europe. The sale does not include Georgia-Pacific Pine Chemicals, which is part of Georgia Pacific’s Packaging and Cellulose businesses.

Bakelite Synthetics was formed by private equity firms Black Diamond, Stamford, Conn., and Investindustrial, London, after they purchased the Phenolic Specialty Resin, Hexamine, and European-based Forest Products Resins businesses from Hexion Inc., Columbus, Ohio, in 2020 (GM Oct. 9, 2020).

Koch bought Georgia-Pacific in 2005 (GM Nov. 21, 2005), after having purchased two paper-related businesses from the company in 2004.

Transportation

Arkansas River, Illinois River, Market Watch, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf:

New Orleans water levels were observed to fall below the 12-foot high-water stage on May 27, allowing for easing restrictions in the NOLA area. Persistent action-stage levels noted from the river gauge at Baton Rouge, La., left restrictions in place above New Orleans, however.

Calcasieu Lock daylight-hour transit restrictions, recently extended through late August, were noted blocking Monday-Thursday travel daily between 7:00 a.m. and 6:00 p.m. Calcasieu Lock is located at Mile 238.5 in the West Canal.

Repairs underway through the end of May at Bayou Sorrel Bridge were noted triggering daytime travel stoppages from 7:00-11:00 a.m. and again from 1:00-5:00 p.m., Monday through Friday. Unrestricted access was restored on Saturday and Sunday.

Port Allen Lock repairs were heard to begin on May 31, blocking Monday-Friday navigation daily from 6:00 a.m. to 6:30 p.m. Delays were expected up to 24 hours for the duration of the project, tentatively scheduled through June 7.

Guidewall construction underway at Bayou Sorrel Lock limited weekday lockages between 6:30 a.m. and 5:00 p.m., with normal operation returning on Saturday and Sunday. The project is expected to run into early 2023.

Navigation through the Brazos Locks system was reported unavailable on weekdays between 7:00 a.m. and 5:00 p.m., with normal access restored on Saturday and Sunday. The project was expected to continue into late June.

Shoaling continued to be reported at Miles 113-116 of the Atchafalaya River, necessitating maximum 10-foot draft limits in the Morgan City, La., area, a Coast Guard bulletin indicated. Additionally, tow lengths were capped at 600 feet, while tows running longer than 400 feet were encouraged to travel with an assist vessel. Widths were limited to 70 feet. Vessels could bypass the restrictions by detouring through the Port Allen Route.

Ongoing towing length and width restrictions in place at Algiers Lock effectively limited unassisted lockages to four standard barges or two 30,000 mt tankers per turn. Tows traveling with an assist vessel were permitted to lock higher barge counts.

Belle Chasse Bridge construction, projected to continue through the end of the year, was noted triggering intermittent navigation stoppages during the week. Delays were expected up to 12 hours.

Mississippi River:

Ongoing high water levels impacted movements on the lower Mississippi River for another week. As a result, maximum barge counts were reduced by 10-15%, horsepower minimums were in effect, and southbound bridge navigation was limited to daytime hours only for larger vessels through a number of urban areas.

The river gauge at Baton Rouge was reported at 29.9 feet on June 1, just shy of the 30-foot action stage, although the gauge was expected to bounce in and out of action stage throughout the first two weeks of June. The Vicksburg, Miss., gauge was posted at an action-stage 35.11 feet, with forecasts predicting levels to fall out of action stage on June 13.

The elevated conditions were largely fed by high water levels on the Ohio River, the National Weather Service reported. The gauge at Cairo, Ill., was noted cresting at an action-stage 32.48 feet on June 1. Area waters were anticipated to move below the 32-foot action stage on June 3.

Channel reinforcement underway since May 10 at Mile 807 on the lower river reportedly blocked southbound movements daily between 6:00 a.m. and 6:00 p.m. The project was tentatively scheduled to wrap up on June 10.

Illinois River:

Repairs and maintenance in progress since May 9 at Brandon Road Lock were noted impacting navigation. Overnight-only movements were reportedly in force between May 9 and Aug. 14, after which a total-lock shutdown will block travel entirely from Aug. 15 to Sept. 4.

Overnight lockages at Brandon Road Lock are expected to resume on Sept. 5-8, followed by a return to 24-hour lockages on Sept. 9. A maximum 70-foot width limit was noted in place on all lockages while the project is underway.

Sources reported lowered wickets at both Peoria Lock and LaGrange Lock for the week, allowing tows to pass both locations without locking.

Ohio River:

Belleville Lock main chamber repair and maintenance was noted in progress from May 1 through June 29. Vessels were reported passing through the secondary chamber while work is underway, with significant delays expected.

The primary chamber at Greenup Lock is undergoing repairs between May 1 and June 29, limiting main chamber access and contributing to delays in locking.

A proposed Hannibal Lock primary chamber closure for repairs and maintenance would span July 5 to Oct. 8. Tows would be expected to pass the site via the auxiliary chamber should the proposal be adopted, with delays likely.

Cannelton Lock is scheduled to undergo primary chamber gate replacement starting on July 5. Transit through the site is expected to be routed through the auxiliary chamber for the length of the project, currently slated through Nov. 11. The site’s auxiliary chamber is shut from May 5 through July 1 for anchor arm replacement.

On the Tennessee River, the main chamber at Pickwick Landing Lock was reported shut for the week due to potential structural issues, prompting detours through the secondary chamber.

The Cumberland River’s Cheatham Lock is reportedly shut for planned miter gate machinery repairs through Aug. 5, triggering significant delays. Shutdowns at the site are slated to run for 11 days straight, during which no lockages will be permitted, followed by a three-day period of unrestricted lock access.

Arkansas River:

Elevated conditions were reported on the Arkansas River during the week, slowing vessel travel and complicating unloading operations. Forecasts suggested the conditions could extend through the first two weeks of June.

Norrell Lock repairs and maintenance were scheduled to block daytime navigation starting on June 1. Scheduled to continue through Jun 11, the shutdowns were due to be repeated on June 22-July 21; Aug. 1-10; Aug. 21-Sept. 21; Oct. 20-Nov. 18; Nov. 29-Dec. 23; and Jan. 3-31, 2023. Locking will be unavailable daily between 7:00 a.m. and 7:00 p.m. during scheduled work days. A complete shutdown is scheduled for Sept. 30 to Oct. 9 at the site.

Joe Hardin Lock will see closures in September and October, with daytime travel unavailable between 7:00 a.m. and 7:00 p.m. on Sept. 12-19, and again on Sept. 28-29. The site will shut completely to navigation over the Sept. 20-Oct. 9 period.

Borealis Receives Binding Offer for Nitrogen Business from Czech Republic’s Agrofert

Europe, Featured, News

Polyolefins and fertilizers major Borealis AG, Vienna, said it has received a binding offer from the Czech Republic’s chemicals and fertilizer company Agrofert for the acquisition of its Nitrogen business, which includes fertilizer, melamine, and technical nitrogen products.

The offer values the business on an enterprise value basis at €810 million (approximately $867 million at current exchange rates). Subject to certain closing conditions and regulatory approvals, transaction closing is expected in the second half of 2022.

Borealis in March pulled out of an earlier agreement to sell the unit to EuroChem Group AG following Russia’s invasion of Ukraine and the imposition of sanctions against Russia (GM March 11, p. 30). The two had been in exclusive negotiations following the receipt in early February of a binding offer for the Nitrogen business from EuroChem (GM Feb. 4, p. 1).

The EuroChem offer valued the Borealis Nitrogen business on an enterprise value basis at €455 million.

Prague-based Agrofert is active in a number of industries in Central Europe, from chemicals and agriculture to food production. The company is also one of the leading European nitrogen fertilizer producers, with manufacturing facilities in the Czech Republic, Germany, and Slovakia. It generated a consolidated turnover of €7.5 billion in 2021.

By adding Borealis’ production assets in Austria, Germany, and France, as well as a comprehensive sales and distribution network utilizing the Danube River, this business combination would well complement Agrofert’s existing capabilities in serving its customers across Europe, Borealis said in a statement late June 2.

Borealis, which is majority-owned (75%) by Austrian oil and gas company OMV AG, will now initiate mandatory information and consultation procedures with employee representatives.

Koch Plants Win EPA’s Energy Star®

News, News Briefs, Nitrogen, Southern Plains, Western Cornbelt

Koch Fertilizer LLC, Wichita, recently reported that three nitrogen plants – Beatrice, Neb.; Enid, Okla.; and Fort Dodge, Iowa – have earned 2021 Energy Star® certification from the U.S. EPA for superior energy performance.

The certification recognizes plants performing in the top 25% of similar nitrogen fertilizer manufacturing facilities nationwide for energy efficiency and meeting strict energy efficiency performance levels set by EPA. This is Beatrice’s third, Enid’s second, and Fort Dodge’s first year to earn certification.

In 2017 and 2021, Koch Fertilizer, as a subsidiary of Koch Industries Inc., earned the Energy Star® Partner of the Year Award in recognition of its superior energy management practices.

K+S Plans to Double Saskatchewan Production

Featured, News, Potash Muriate, Saskatchewan

K+S Potash Canada (KSPC), Bethune, Sask., on May 25 announced a long-term plan to boost potash production at its Bethune facility in Saskatchewan to 4 million mt/y, effectively doubling current output. K+S recently said it is increasing capex in order to ramp up 50,000-150,000 mt/y of additional capacity at Bethune in the near term (GM May 13, p. 1).

KSPC said the final production capacity is intended to grow continuously over the next couple of decades, and is currently targeted toward 4 million mt/y.

KSPC is currently undertaking a feasibility stage, mapping out the future milestones of growth and timelines for supporting projects. The company said it will work closely with provincial and federal governments during this phase to ensure it remains in a successful position to sustain future growth.

“Optimizing our business at Bethune mine enhances the strong position of K+S as an internationally-oriented producer of minerals critical to agriculture and other industries,” said Holger Riemensperger, Chief Operating Officer, K+S Aktiengesellschaft. “Bethune mine is looking at safely and sustainably growing profitability while simultaneously reducing environmental impact, and building a more diverse and inclusive workforce while continuing to engage with local and Indigenous communities throughout all stages of the plan.”

To support these plans, KSPC is currently seeking employees in various engineering, IT, operations, trade, and supporting roles, with a longer-term outlook to hire more than a hundred additional employees – primarily in operations – as new systems are established.

“The main focus right now is to establish the team that will drive the growth plan and associated projects,” said Sam Farris, President, KSPC. “Planning for growth is an opportunity to develop infrastructure and programs that will continue our progress toward becoming world-class, and I’m confident we’ll continue to attract the talent we need across the business to realize these opportunities.”

KSPC currently employs over 400 people at the Bethune mine and Saskatoon and Port Moody offices.

Minbos Sells Rare Earth Stake to Finance Angolan Phosphate DFS; Green Hydrogen/NH3 Eyed

Africa, Ammonia, Australia, Green Hydrogen, News, News Briefs, Phosphate

Junior phosphate producer Minbos Resources Ltd., Subiaco, Western Australia, said on May 25 that it has divested its interest in Madagascan Rare Earths Project to ALS (Hong Kong) Ltd. The proceeds of A$2.46 million will be applied to complete the definitive feasibility study for the proposed Cabinda Phosphate Plant in Angola (GM Feb. 22, p. 35).

Minbos also confirmed that it has received an updated resolution from RNT-EP, Angola’s power network operator, that it intends to enter into an agreement with Minbos for the supply of hydroelectric power from the Canpunda Hydroelectric Dam, which Minbos could use for a green hydrogen and ammonia plant. Minbos is looking at the possible production of nitrogen fertilizer, as well as ammonium nitrate, for industrial uses, mainly to serve Africa’s mining industries.

LSB Plans Green Ammonia Production at Pryor Plant

Featured, Green Ammonia, News, Southern Plains

LSB Industries Inc., Oklahoma City, on May 25 announced that it entered into agreements with Thyssenkrupp Uhde U.S. LLC, Houston, and Bloom Energy, San Jose, Calif., to develop a project to produce approximately 30,000 mt/y zero-carbon or green ammonia at LSB’s Pryor, Okla., facility.

Thyssenkrupp will develop the engineering design to convert a small portion of Pryor’s existing conventional ammonia capacity into green ammonia, while Bloom will be involved in electrolyzer supply.

“We are very excited to partner with Bloom Energy and Thyssenkrupp Uhde in taking our first step to becoming a leading supplier of zero carbon or green ammonia in a unique facility that will have two electrolyzer technologies operating side by side,” said Mark Behrman, LSB President and CEO. “We believe that being an early entrant into the green ammonia space will allow us to become a leading player as the market evolves.

“This project is very important for LSB and our partners, because in addition to its initial environmental benefit, it provides a learning opportunity,” Behrman continued. “With two electrolyzer technologies working together in a real-world application, we can learn how to effectively develop projects and operate facilities in this exciting new environment. We view this project as our first critical step in becoming a major facilitator and participant in the green ammonia market of the future.”

Green ammonia will be produced by extracting hydrogen from water using the electrolyzers powered by a renewable fuel source, such as solar or wind. Since no fossil fuels are involved in the process, the end-product has no associated carbon emissions.

Pending results of the feasibility study currently underway, and subsequent Board approval, the project will be constructed in two phases: first with Bloom supplying a 10 megawatt (MW) solid oxide electrolyzer, followed by the installation of an additional 20MW alkaline electrolyzer unit, which will be sourced from a leading manufacturer. Bloom will own, operate, and maintain the solid oxide electrolyzer that, once in operation, will be the largest of its kind in the world.

Once the second electrolyzer is installed and operational, LSB said Pryor will be the largest green ammonia production site in North America. Currently, CF Industries Holdings Inc., Deerfield, Ill., has a 20,000 st/y green ammonia plant under construction at its Donaldsonville, La. complex (GM April 23, 2021).

The green hydrogen produced from the electrolyzers as part of the ammonia production process is expected to qualify for federal incentive programs such as the production and investment tax credits currently under evaluation by Congress.

LSB’s green ammonia news quickly follows an April announcement that it plans to produce blue ammonia at its El Dorado, Ark. facility (GM April 29, p. 1). Carbon sequestration at the site will allow for the production of 375,000 mt/y of blue ammonia. Completion of that project is expected by 2025. Some 450,000 mt/y of CO2 is expected to be sequestered underneath the El Dorado plant.

LSB partner Lapis Energy will fund the full capital requirements of the El Dorado sequestration facility and will pay LSB $1/mt for the CO2. Lapis will receive the full benefit of current $50/mt tax credit under Internal Revenue Code Section 45Q. Should the credit move to $85/mt as is proposed, LSB told analysts on May 4 that an outsized portion of that increase will come back to LSB.

The Agricultural Retailers Association – Management Brief

Management Briefs, U.S.

The Agricultural Retailers Association (ARA) recently presented Sens. Jerry Moran (R-Kan.) and Todd Young (R-Ind.) with its Legislator of the Year Award. ARA said the annual award serves to recognize one or more legislators who have championed issues that impact agricultural retailers and the entire agriculture industry.

ARA President and CEO Daren Coppock said Moran has worked to address the nation’s supply chain issues by supporting investments in transportation and broadband infrastructure, and to reform federal regulations that allow for the hiring of additional commercial drivers. Coppock said Young has also supported policies to address the driver shortage and other supply chain issues.

“Ag retailers play an essential role in providing necessary crop nutrients for our farmers in Kansas and across the country to feed the world,” said Moran. “As producers grapple with higher input costs, including skyrocketing prices for fertilizers, I am committed to working across the supply chain to finding solutions to meet these challenges and deliver American-produced food around the world.”

“Supply chain problems and rising inflation are among the issues that concern Hoosiers the most,” said Young. “Our farmers and ag retailers are eager to grow and sell the food our families need, and the DRIVE-Safe Act will help ensure there are enough truck drivers to deliver these goods to their final destinations. I will continue working with ag retailers to ensure American farm products reach the kitchen tables of American families.”