All posts by mickeybarb@charter.net

Bipartisan Group of Senators Asks DOE to Prioritize Green Ammonia

Green Ammonia, News, News Briefs, U.S.

A bipartisan group of five U.S. Senators – Amy Kobuchar (D-Minn.), Chuck Grassley (R-Iowa), Tina Smith (D-Minn.), Deb Fischer (R-Neb.), and Tammy Baldwin (D-Wisc.) – has sent a letter to Secretary of Energy Jennifer Granholm asking her to prioritize green ammonia for fertilizer and other uses when considering end-use diversity for the Regional Clean Hydrogen Hubs.

They noted that Congress passed the Infrastructure Investment and Jobs Act (IIJA) with strong bipartisan support in November 2021. They said the Hubs are an integral component of that transformation.

“The production of ammonia for fertilizer is currently responsible for more than 1 percent of global carbon dioxide emissions,” noted the senators. “Green ammonia is one of the best tools we have to reduce greenhouse gas emissions because it can immediately be fed into existing ammonia infrastructure and deployed on farms, even while additional uses of ammonia as a fuel are developed and deployed.

“A clean, stable, domestic source of ammonia-based nitrogen fertilizers is extremely important for America’s agriculture industry,” they added. “The current record-breaking fertilizer prices have been difficult for farmers and ranchers and bad for inflation. A Regional Clean Hydrogen Hub focused on the manufacture of green ammonia for fertilizer would allow America’s farmers to drastically reduce their carbon footprint while also providing price and supply stability to this critical farm input.”

USDA Slashes Corn Acreage Estimate, Raises Soybeans; High Input Costs Blamed for the Shift

Featured, News, U.S.

The USDA’s March 31 Prospective Plantings report projects planted corn acreage this year at 89.5 million acres, down 4 percent, or 3.87 million acres, from last year’s 93.4 million acres, and significantly lower than the 92 million acres estimate that USDA gave at its Feb. 24-25, 2022, Agricultural Outlook Forum (GM March 4, p. 25).

USDA said corn acreage decreases from last year of 200,000 or more are expected in Illinois, Indiana, Iowa, Kansas, Minnesota, Nebraska, North Dakota, and Wisconsin. Record-high corn acreage is expected in Nevada and South Dakota, while record low acreage is expected in Connecticut, Massachusetts, and Rhode Island.

A drop in U.S. corn acreage was anticipated by many analysts due to the surge in fertilizer costs. A Green Markets survey of retail fertilizer prices in the Midwest in early March showed anhydrous ammonia up nearly 160 percent from last year at this time, urea up 104 percent, DAP up 55 percent, and potash up 104 percent.

Input costs are also spiking for fuel, herbicides, and machinery. A survey conducted by Bloomberg in advance of the report’s release estimated that some two million acres would shift from corn to soybeans, despite prices for both crops jumping 22 percent this year due to booming global demand and limited supplies.

After the report’s release, corn futures for May delivery in Chicago rose 3.4 percent, to $7.63 a bushel, while soybeans dropped and benchmark wheat rose.

“Corn acres below 90 million this year indicates the corn supply crunch – and higher prices – will extend into 2023 and support strong nitrogen demand next year,” said Alexis Maxwell, Green Markets Research Director.

Soybean planted area for 2022 is estimated at a record 91.0 million acres, up 4 percent from last year’s 87.2 million acres and substantially higher than the 88 million acres projected in February. According to Bloomberg, soybean acres have eclipsed corn only twice before in almost a century of record keeping.

Planted acreage intentions for soybeans are up or unchanged in 24 of the 29 estimating states, USDA said, with increases of 250,000 acres or more anticipated in Illinois, Indiana, Iowa, Minnesota, Missouri, South Dakota, and Tennessee.

The largest soybean acreage increases are expected in Illinois and Missouri, where producers in each state intend to plant 400,000 more acres than in 2021. If realized, the planted soybean area in Illinois, Kentucky, Michigan, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin would be the largest on record, USDA noted.

The switch from corn to soybeans will free up much-needed fertilizer tons in the system. Based on 2018 application rates as reported in a USDA Chemical Use Survey and assuming an acre-for-acre shift from corn to soy, 274,000 tons of nitrogen, 65,000 tons of phosphates, and 40,500 tons of potassium fertilizer will be freed up in the U.S. system during the course of the growing season.

All wheat planted area for 2022 is estimated at 47.4 million acres, up 1 percent from last year’s 46.7 million acres, but down slightly from the February estimate of 48 million acres. USDA said this represents the fifth lowest all wheat planted area since records began in 1919.

Winter wheat planted area, at 34.2 million acres, is down less than 1 percent from the previous estimate, but up 2 percent from last year. Area planted to other spring wheat for 2022 is expected to total 11.2 million acres, down 2 percent from 2021, while durum wheat is expected to total 1.92 million acres for 2022, up 17 percent from last year.

All cotton planted area for 2022 is expected to total 12.2 million acres, up 9 percent from last year, with the largest acreage increase anticipated in Texas. Area planted to rice in 2022 is expected to total 2.45 million acres, down 3 percent from 2021.

As for other crops, USDA said growers intend to plant 6.21 million acres of sorghum in 2022, down 15 percent from last year; 2.55 million acres of oats, down less than 1 percent from 2021 and the second lowest on record; 2.94 million acres of barley, up 11 percent from last year; and 2.16 million acres of canola, up less than 1 percent from 2021.

USDA also released the quarterly Grain Stocks report on March 31. Compared with last year at this time, total corn stocks were estimated at 7.85 billion bushels, up 2 percent; soybeans at 1.93 billion bushels, up 24 percent; wheat at 1.02 billion bushels, down 22 percent; and durum wheat at 29.7 million bushels, down 30 percent.

PVS Acquires Sackett-Waconia; Taylor to Remain as CEO

Featured, News

PVS Chemicals (PVS), Detroit, has entered into a definitive agreement to acquire Sackett-Waconia, Baltimore, which has a 125-year history of designing and manufacturing fertilizer handling, blending, and process equipment for the global market.

“PVS is honored to be entrusted with the next chapter of Sackett-Waconia, a company that complements PVS’ other lines of business,” said David Nicholson, PVS President and CEO. “First and foremost, our goal is to continue to provide our customers and partners with the excellent craftsmanship and innovation that has been the foundation of Sackett-Waconia for the past 125 years. Additionally, PVS is pleased that Larry Taylor, the current CEO of Sackett-Waconia, will remain in his position for the foreseeable future, ensuring continuity and a seamless integration.”

“Sackett-Waconia’s success is its partnership with its customers,” said Taylor. “I look forward to continuing what has made us successful for so long as part of the PVS family.”

PVS is a third-generation, privately-owned manufacturer and distributor of chemistry, including some fertilizers, throughout the U.S., as well as operations in Asia and Western Europe. PVS Chemicals Belgium NV produces sulfuric acid in Belgium.

Gavilon Buys Five CHS Wholesale Facilities

Featured, News, South Central, Southeast

Gavilon Fertilizer, Savannah, said on March 28 that it has acquired five wholesale fertilizer facilities from CHS Inc., St. Paul. The company said the facilities are located in Lake Providence, Texarkana, Greenville, Little Rock, and Memphis, and will help meet demand for custom, wholesale crop nutrients across Louisiana, Texas, Mississippi, Arkansas, and Tennessee.

“The year-round river access of these locations will enable Gavilon to be a strong distribution partner for our producer suppliers and regional customers alike,” said Gavilon Fertilizer President Brent Harlander. “We look forward to building out these facilities to offer a full line of dry and liquid bulk fertilizers, micronutrients, and Gavilon’s exclusive Enhanced Efficiency Fertilizers.”

The five facilities purchased include one inland 24/7 liquid tank terminal and four dry and liquid river warehouse terminals served with barge access. With the acquisition complete, Gavilon said it has already committed to investing in the employees and the assets to better serve and grow the business in the southern delta region.

Gavilon Fertilizer’s parent, Marubeni Americas, said in January that it planned to provide Gavilon Fertilizer with corporate resources and capital for new growth projects, innovative products, and distribution assets in both the U.S. and international markets (GM Jan. 28, p. 1).

In other recent initiatives, Gavilon upgraded its terminal at Victoria, Texas (GM July 10, 2020) and partnered in a new liquid fertilizer plant in Hastings, Neb. (GM July 2, 2020).

Trammo Inks Green Ammonia Offtake Deal

Featured, Green Ammonia, News

Trammo Inc., New York City, on March 28 announced an exclusive green ammonia supply and offtake agreement with Teal Corp., Magog, Quebec, which is developing green chemistry projects in the energy and fuel markets. Trammo will secure 800,000 mt of green ammonia from an ammonia production plant to be built on land Teal has already secured in Sept-Iles, Quebec.

The project will have access to an existing port and energy infrastructure. The parties said it will be one of the few to produce green ammonia from hydroelectric power. Trammo expects to have this additional supply available for its customers within the next 3-4 years.

Trammo and Teal are currently working on additional projects in other strategic locations with the aim of increasing the volume of green ammonia produced by Teal to more than 2.5 million mt. The parties said with nearly a decade of partnership in the field, they are pioneers in the development of green ammonia projects.

Salt Lake Potash Expressions of Interest Process Getting Underway

Australia, News, News Briefs, Specialty, Sulfate of Potash

Preliminary data for the expressions of interest in Western Australian sulfate of potash (SOP) junior company Salt Lake Potash (SO4), Perth, should be available by April 4, according to the Australian Financial Review (AFR). SO4 became insolvent last fall, and creditors appointed KordaMentha Restructuring, the distressed business division of KordaMentha, an advisory and investment firm, to take over (GM Oct. 22, 2021).

Advisor Macquarie Capital announced last month that it would be commencing a process to sell SO4’s flagship Lake Way Project or recapitalize the company. They are seeking expressions of interest.

SO4’s Lake Way Project was slated to begin SOP production in June 2021. However, in late July, the company revised its ramp-up schedule and said it would need more money to proceed (GM July 30, 2021). SO4 also in late July halted trading on the Australian Stock Exchange (ASX) pending further announcements. It was halted on London’s Alternative Investment Market (AIM) on Oct. 19.

According to AFW, Lake Way had disappointing geological and processing results and investors did not come forward to fill the latest gap, after having been tapped 11 times for a total of $507 million of debt and equity over the past five years. Creditors are now reportedly owed A$170 million (US$127 million). Australia’s Clean Energy Finance Corp. is reportedly owed US$47 million.

At full production, SO4 had planned an output of 245,000 mt/y of SOP. As of last March, it said it had in place around 224,000 mt/y of binding offtake agreements for five- and ten-year terms (GM March 26, 2021; Dec. 20, 2019).

These deals included: Helm AG, Germany, 50,000 mt/y for 10 years from start of production for sale within Southeast Asia and the Middle East (GM Dec. 20, 2019); Unifert for 60,000 mt/y in the Middle East and Africa; Indagro for 50,000 mt/y for North America and Europe; and Fertisur for 60,000 mt/y in South America (GM Nov. 22, 2019).

In the meantime, SO4 has increased its Measure Mineral Resource projections from the project by 108 percent, from .90 million mt to 1.87 million mt, based on drainable porosity.

Maire Tecnimont Reports $230 M Award for U.S. Blue Ammonia Contract

Blue Ammonia, Europe, Featured, News

Maire Tecnimont SpA, Milan, on March 22 announced that its main contractor, Tecnimont SpA, has been awarded a project on an engineering, procurement, and construction management (EPCM) basis by a leading global chemicals producer for the implementation of a blue ammonia plant in the U.S. The contract value is put at approximately $230 million.

Maire said the plant entails a 3,000 tons per day blue ammonia synloop, plus the necessary utilities and facilities. Completion is expected as early as 2025.

The contract’s scope of work includes full engineering activities and supply of all materials and equipment, as well as construction supervision services, while construction activities will be executed by another party under a different contract, which will be directly issued by the client.

Kore Potash Reports FY21 Progress, Need for More Money

Africa, London, News, News Briefs, Potash

London-based Kore Potash Plc on March 31, citing key milestones achieved in 2021, said that it was able to advance its Kola Project in the Republic of Congo despite difficult circumstances facing the global economy. The progress included a nonbinding Memorandum of Understanding on financing (GM April 9, 2021).

Kore plans to release its Kola Project Optimization Study shortly and provide an update on engineering, procurement, and construction, along with financing proposals it expects to receive in 2022.

The company said it will have sufficient liquidity to meet its capital requirements to the end of the going concern period of March 2023. However, it said it would be required to raise funds after the period to meet its ongoing contracted and committed expenditure. It said the Board of Directors has considered various mitigating actions, which include raising additional capital to enable the group to continue to fund its working capital requirements, with a number of funding options identified as available.

Kore also reported a 2021 consolidated net loss of $13.5 million, compared to a profit of $8.2 million in 2020.

The funding and financial news, however, did not sit well with some investors, as company shares were off at much as 19 percent on March 31 after the news was released, according to Dow Jones.

Highfield Reports €312.5 M Finance Package, Approval of Electric Line

Europe, News, News Briefs, Potash

Junior potash and salt developer Highfield Resources Ltd., Navarre, Spain, on March 31 announced that it has agreed to a nonbinding indicative term sheet with a group of experienced European mining finance lenders, including Société Générale, ING Bank NV, and Natixis, for a €300 million senior secured project financing facility and an additional €12.5 million cost overrun facility, resulting in an overall package for €312.5 million to finance the construction of its 100 percent-owned Muga Potash Project in Spain.

Highfield said the facilities will cover a significant portion of the pre-production investment required to complete the Phase I construction of Muga. In addition, the company said it has received strong interest from local Spanish banks who wish to participate.

In other news, the company reported that it has received Government of Navarra authorization to build an electric line to the mine site.

OCI, NortH2 Consortium Partner on Green Ammonia, Methanol

Europe, Green Ammonia, Methanol, News, News Briefs

OCI NV, Amsterdam, on March 31 announced a partnership with the NortH2 Consortium with the intent to develop the first integrated green ammonia and methanol value chains through large-scale green hydrogen supply by NortH2 to OCI’s plants in the Netherlands. NortH2 is a large-scale offshore wind-to-hydrogen electrolysis project being developed in the Eemshaven area.

OCI said joining forces with NortH2 will provide it with a stable and large-scale supply of green hydrogen, which allows the company to decarbonize its production processes and meet growing demand from its customers in the downstream value chain for renewable hydrogen.

OCI said its production assets are strategically located and ideally positioned to connect to the NortH2 project and the planned hydrogen pipeline backbone of Gasunie in the Netherlands. It said some 1 GW of NortH2’s green hydrogen would be used in OCI’s production processes and would correspond to 900,000 mt direct CO2 reduction per year, which would constitute a significant 4 percent of the 2030 Climate targets set for Dutch industry.

During its current feasibility phase NortH2 consists of Equinor, RWE, Shell, and Gasunie, with the support of Groningen Sea Ports. Eneco, a sustainable energy company with operations in the Netherlands, Belgium, Germany, and the U.K., has announced it will also join the consortium as an investment partner. Eneco, Shell, Equinor, and RWE plan to continue together after the joint study phase and produce a large-scale supply for the industry of up to 4 GW by 2030.