All posts by mickeybarb@charter.net

SusGlobal Closes on Hamilton Acquisition, Plans Upgrade, Expansion

Canada, News, News Briefs, Specialty

Organic fertilizer producer SusGlobal Energy Corp., Toronto, said on Aug. 18 its wholly-owned subsidiary, SusGlobal Energy Canada I Ltd., has completed the agreement (GM June 4, p. 31) to purchase a 40,535 square foot facility on 3.26 acres in Hamilton, Ont., which includes Environmental Compliance Approval to process 65,884 mt/y of organic waste 24 hours per day, 7 days a week.

The company also announced that it has retained ZAS Architects to design and develop the facility, and hopes to convert an industrial warehouse into a light-filled inspiring workplace. With the addition of a further 11,000 square feet of office space and R&D labs, the facility will also house the continued development of SusGlobal’s proprietary formulations and branded liquid and dry organic fertilizers.

The company expects production at the facility to begin in second-quarter 2022. It plans to produce its SusGro™, a pathogen-free organic liquid fertilizer, at the location. The company said it will process 100 mt/d of organic waste (three municipal trucks per day at approximately 33 mt) to produce 500,000 liters of fertilizer per day, five days per week, 52 weeks a year, for a total of 130 million liters per year. It said it can produce 5,000 liters per every mt of waste processed. The company values the fertilizer produced per day at $2 million.

In addition to producing, distributing, and warehousing the product, the company said it would do the same for other organic liquid fertilizer products that are provided under private label and sold through big box retailers and consumer lawn and garden suppliers, and for end use to the wine, cannabis, and agriculture industries.

SusGlobal’s first facility, which began operations in 2017 on 49 acres of company-owned land in Bellville, Ont., currently processes 70,000 mt/y of municipal source separated organics to produce 20,000 mt/y of dry fertilizer/organic compost.

CleanBay to Supply RNG to BP

News, News Briefs, Specialty

CleanBay Renewables, Annapolis, and BP, Houston, on Aug. 24 announced a 15-year agreement where BP will purchase renewable natural gas (RNG) processed from poultry litter – a mixture of manure, feathers, and bedding – and sell it as fuel for the U.S. transportation sector.

CleanBay manages this process by mixing poultry litter with water in an anaerobic digester. One of the end products is biogas, which includes methane. The biogas can be processed into RNG and used to fuel vehicles.

BP will sell the fuel to its customers, initially in California. There is strong demand for RNG fuel in the state due to incentives from its Low Carbon Fuel Standard. RNG-fueled vehicles are estimated to result in up to 95 percent lower greenhouse gas (GHG) emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a U.S. Department of Energy study.

“Working with innovative companies like CleanBay will be key for BP to reach our net zero ambition,” said Michael Thomas, BP Vice President, Biogas Origination. “As one of the largest suppliers of RNG to the U.S. transportation sector, this agreement will help us continue delivering competitive, reliable energy solutions.”

CleanBay is an environmental technology company focused on the production of sustainable RNG and engineered organic fertilizers. This agreement with BP directly supports the financing for its first active bio-conversion facility, planned in eastern Maryland.

CleanBay is actively exploring sites for future facilities in the Mid-Atlantic, Southeast, and California. Its goal is to establish a portfolio of RNG and power facilities that reduce local emissions and provide farmers with an alternative use for their poultry litter and a fertilizer to increase their food production. Each of the 30 proposed CleanBay facilities is expected to generate enough sustainable energy to power 9,200 cars per year by recycling more than 150,000 tons of poultry litter annually.

CleanBay has incorporated measures to further reduce its carbon footprint, including co-located solar power fields to meet the onsite power needs and the production of alternative products like green hydrogen.

“RNG is a necessary energy transition approach in the near-term, but green hydrogen and the use of RNG to power electric vehicle charging stations will be the backbone of a fast transition to a net zero future,” said Donal Buckley, CleanBay CEO.

Marrone Bio, Terramera to Collaborate

California, Canada, News, News Briefs, Specialty

Biological crop input company Marrone Bio Innovations Inc. (MBI), Davis, Calif., said on Aug. 16 that it and agtech company Terramera, Vancouver, B.C., will collaborate to combine their technological and biological expertise to enhance the performance of MBI’s crop protection products and expedite product development.

The collaboration is expected to provide a platform that will bring existing and new biologicals to market supported by Terramera’s artificial intelligence-based screening platform of novel adjuvants, Plant Intelligence Engine™, and Actigate technology, a proprietary green chemistry that delivers active ingredients directly into target cells. The synergistic approach is anticipated to increase the performance and consistency of new and existing active ingredients in Marrone Bio’s portfolio, including Regalia® Biofungicide, newly developed Stargus® Biofungicide, Venerate® XC Bioinsecticide, and Grandevo® WDG Bioinsecticide.

In addition to the collaboration, field trials are planned for late summer and early fall to test performance of the combination of two commercially available products, MBI’s Venerate XC Bioinsecticide and Terramera’s Rango™. Additional trials are contemplated for spring 2022.

Founded in 2010, the privately-held Terramera is committed to reducing the global synthetic pesticide load 80 percent by 2030. It reports more than 250 patents in its portfolio.

MBI is involved in biological inputs, including crop protection, crop health, and crop nutrition. It has portfolio of more than 15 products, and said it has more than 500 issued and pending patents.

Koch’s Synthos Available in Canada

Canada, News, News Briefs, Specialty, Western Cornbelt

Koch Agronomic Services, Wichita, reported that Synthos®, its plant growth rhizobacteria, is now available in Canada. It said it is Canada’s only phosphate-solubizing plant growth-promoting rhizobacteria product that will promote plant growth and help improve plant adaptability.

“Canadian growers will quickly see the benefits of using Synthos,” said Dr. Rigas Karamanos, Senior Agronomist for Koch in Canada. “On the operational side, Synthos is easy to apply and has a two-year shelf life. In the field, Synthos helps with plant uptake, enhances root mass development, and improves nutrient use efficiency through phosphate solubilization. Research being done in Canada shows Synthos has yield advantages on both wheat and canola, and has the potential to increase overall profitability.”

The company said Synthos contains live microorganisms that help improve soil fertility when applied to plant surfaces, seeds, roots, and soil. The substance colonizes the rhizosphere or the interior of the plants, stimulating plant growth by increasing the availability of plant nutrients.

Koch said Synthos can save growers both time and money in the field with a range of benefits that include: easy application and flexibility, formulated to impregnate bulk dry fertilizer, or applied banded; a mineral oil-based formula that allows it to suppress dust during storage, handling, and application; and an extended window of application, with the ability to be stored for up to two years before microbial viability is compromised. It is also viable on fertilizer up to 18 months depending on storage conditions.

Nutrien Receives CADE Approval for Terra Nova Agrícola Acquisition

Brazil, News, News Briefs, Saskatchewan

Nutrien Ltd., Saskatoon, said on Aug. 25 it has received approval from Brazil’s Administrative Council for Economic Defense (CADE) to acquire Terra Nova Agrícola (GM July 9, p. 1), which operates in the state of Minas Gerais. The purchase allows Nutrien to expand its retail network in Brazil by nine, to a total of 33.

Total revenue from Terra Nova’s crop inputs business is estimated at 250 million Brazilian reals (US$47.6 million), with average EBITDA margins of approximately 10 percent, which Nutrien said is in line with similar transaction metrics of ag retail businesses acquired by Nutrien in the U.S.

Since making the Terra Nova announcement, Nutrien has also announced that it plans to buy Brazil’s Bio Rural, Mato Gross do Sul (GM Aug. 13, p. 35), which would add another nine outlets. CADE approval for this deal is still awaited. In total, Nutrien has made five acquisitions in Brazil in the last 18 months.

Enaex, Engie Chile Advance Plans for Green Ammonia and Hydrogen

Chile, Green Ammonia, Hydrogen, News, News Briefs

Chile’s ammonium nitrate and explosives producer Enaex SA, Santiago, has presented to Chilean regulators an environmental impact statement (EIS) for its “HyEx-Ammonia Synthesis” project that would produce 18,000 mt/y of ammonia, which would be used for ammonium nitrate production, according to a Bloomberg report. It would be the first green ammonia plant in Chile that uses green hydrogen and renewable energy.

The plant would be about 24 kilometers away from Tocopilla, in the Antofagasta Region. The ammonia would be shipped to the company’s Prillex plant in Mejillones, and would reduce ammonia imports.

Hydrogen for the ammonia plant would be piped from Engie Chile, which has submitted its own EIS to regulators for a new plant – HyE-Green Hydrogen Production. Green hydrogen production (26MW) would be based on a water electrolysis system powered by renewable energy. Engie already has a thermoelectric power plant near Tocopilla, and it is currently developing a solar project.

Both the Enaex and Engie projects are pilot projects and are expected to be commissioned in June 2025. Costs for each plant were reported as US$49 million and $47 million, respectively, according to Renewables Today.

In the long term, and once the pilot plants are up and running, both companies are looking at large-scale projects for the region, with 2,000 MW of electrolysis from Engie, from which Enaex would increase its production of green ammonia to 700,000 mt/y, with an estimated date of 2030.

In the meantime, Engie is advancing a Hydra pilot to promote the use of hydrogen fuel for mining vehicles, as well as its use in cranes for a Walmart Distribution Center in Quilicura.

ACME Green Project Progresses in Oman

Green Ammonia, India, News, News Briefs

Indian solar power producer ACME Group, Gurugram, Haryana, said on Aug. 23 it has signed a land agreement to set up the previously announced (GM March 26, p. 1) green ammonia project at Special Economic Zone (SEZ) at Port of Duqm (Tatweer) in Oman.

“The signing of [this] land reservation agreement will allow us to kick-start pre-construction activities,” said Manoj Upadhyay, ACME Chairman and Founder. “We have hired environmental consultants and owners engineers Black & Veatch, and we plan to start the construction at Oman as soon we commission our first green hydrogen and green ammonia plant at Bikaner in India. The plant in Oman would be developed in phases, and the first phase is likely to be commissioned by end of 2022.”

The Oman facility will produce green hydrogen and ammonia. ACME is now putting it as a $3.5 billion investment over three years. In March, it was listed as a $2.5 billion project. The plant will be an integrated facility using 3 GWp of solar and 0.5 GWp of wind energy to produce 2,400 mt/d of green ammonia, with an annual production of approximately 900,000 mt/y. The facility is being built to export green ammonia to demand centers such as Europe and Asia.

ACME currently has a green hydrogen and ammonia pilot plant under construction in Rajasthan, India.

KBR, JM Ink Another Agreement

Ammonia, Houston, TX, Methanol, News, News Briefs, Urea

KBR, Houston, announced on Aug. 23 that it has signed an alliance agreement with Johnson Matthey (JM) to license the Formox™ Integrated UFC Technology (iUFC™). The technology consists of JM’s methanol and UFC (Urea Formaldehyde Concentrate) production processes integrated with KBR’s proprietary ammonia process, either as part of new installations or as retrofits for existing units, enabling low-cost production of UFC for higher grade urea.

“Following our successful alliance for ammonia-methanol coproduction with JM last year, KBR is excited to offer the iUFC process for new and existing fertilizer complexes to efficiently upgrade their end products,” said Doug Kelly, KBR President, Technology. “With KBR’s market leading ammonia technology, this offering will allow integrated fertilizer complexes to upgrade their urea quality for maximizing crop yields while ensuring the lowest carbon footprint.”

“We are extremely proud to deepen our ongoing alliance with KBR by offering this comprehensive UFC technology solution,” said John Gordon, Managing Director for Johnson Matthey. “Our partnership highlights how uniquely positioned the companies are to integrate this technology into both new and established ammonia plants. Customers will benefit from enhanced performance, operational agility and reduced environmental impact.”

Since the 1940s, KBR said it has licensed, engineered, and constructed more than 244 ammonia plants worldwide. JM has supplied the methanol and formaldehyde industry with technology and catalysts for over 45 years and has licensed over 100 grassroot methanol plants and over 190 formaldehyde plants for formaldehyde production, of which approximately 20 percent have UFC capability.

Australian Gas JV Accelerates Testing

Australia, News, News Briefs

The Range Gas Project’s pilot in the Surat Basin in Queensland is accelerating testing, according to joint venture partner Central Petroleum Ltd., Brisbane. The other jv partner is fertilizer producer Incitec Pivot Ltd., Southbank, Victoria.

Central reports that all three wells continue to operate reliably, with gas rates steadily increasing as dewatering continues. Daily flow rates have increased to around 50,000 scfd, up from 35,000 scfd in July.

In order to accelerate technical understanding of water and gas production profiles within the permit, Central said the area subject to pilot testing will now be expanded. This will involve the drilling and completion of two additional step-out wells from the existing pilot wells.

The jv intends to have these additional wells online in late 2021 or early 2022.

Central said in pursuit of the technical data there will be an impact on the timeline for the final investment decision (FID). However, it is still targeting the first gas to the market in 2024.

The jv is positioned to take advantage of an expected shortfall of gas supply in eastern Australia by 2024. IPL is hoping the gas can eventually supply its Gibson Island nitrogen plant.

Ammonia

Ammonia, Black Sea, China, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Southeast Asia, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa business for September was concluded at $615/mt CFR, down $10/mt from August’s $625/mt CFR. Market participants had been predicting a rollover or a slight change up or down, citing continued strength in both the international and domestic markets, offset by ample inventories in the U.S. Gulf.

Eastern Cornbelt:

The ammonia market was unchanged at $645-$670/st FOB Eastern Cornbelt terminals for prompt or prepay, with the low reported for prompt tons at Lima, Ohio, and the high for either prompt or 4Q prepay offers out of northern Indiana terminals. Most terminals in Illinois were steady at the $665/st FOB level for prompt or prepay in late August.

Western Cornbelt:

The ammonia market was steady at $645-$665/st FOB for prompt or prepay in the Western Cornbelt, depending on location and supplier, with the low at Hoag, Neb., and the upper end reported at Palmyra, Mo., and out of Nebraska locations at Blair and Fremont.

Southern Plains:

Prompt ammonia pricing was reported at the $615/st FOB level out of Oklahoma production points, with 4Q prepay offers pegged in the $625-$635/st FOB range. Gulf Coast terminals remained at the $570/st FOB level for prompt truck tons in late August.

South Central:

The ammonia market remained in the $570-$595/st FOB range out of regional terminals, with the high reported for the last prompt offers at Memphis, Tenn., and the low for new truck offers out of Louisiana production points. No current offers were reported out of El Dorado, Ark., Cherokee, Ala., or Hopewell, Va.

Black Sea:

The Black Sea ammonia market is holding even at $590/mt FOB. That is expected to change in September, however, because the price of natural gas is going up on Sept. 1. The move, said one trader, could force the ammonia price to $690/mt ex-plant.

The high price and additional cost of transportation to the port will push the ammonia price beyond what buyers are willing to accept, according to sources.

India:

The FACT tender closed on Aug. 24 with no offers. Sources said the Indian company has retreated behind closed doors to figure out what to do next.

The tender was for ammonia to be shipped in the second half of September. Sources said FACT still needs the tons. They also said the tightness of the Arab Gulf market could make getting the needed tons at the right time difficult.

Middle East:

Sources said the Ma’aden plant is lining up vessels to move out its ammonia production. Ships are reportedly booked well into September.

Traders said Ma’aden will first have to repay all the tonnage it swapped with other producers and settle its own contracts before it can begin offering tons in the spot market. No extra tons are expected anytime soon. The impact of this tightness was even seen in the recent FACT tender, when no offers were put forward for 7,500 mt in late September.

The tightness of supplies in the area has killed any possible spot business, leaving the public price at $620-$630/mt FOB. Sources said contract tons, sold on a formula basis, are being loaded and shipped.

Northwest Europe:

The ammonia market is quiet, with no change in pricing. Sources said some production problems in Italy and Norway are prompting buyers to look to Black Sea and Baltic ports. One trader said more aggressive moves are based on possible purchases from Turkey.

The move away from the Baltic producers to the Black Sea, said one trader, could be a message to Baltic producers that they are not the only place to get ammonia. The move comes as September prices talks picked up. Sources said the most likely option for September pricing from the Baltic suppliers will be deals based on Black Sea pricing rather than a set price from the area.

Southeast Asia:

The return to production by Ma’aden was welcome news for buyers in Asia. Sources said it will take a while for the full impact of the return of Saudi material to be felt in Asia, but reportedly buyers are already looking at pushing for lower prices into the last quarter of the year.

China:

Ammonia imports in China were down 16.7 percent in the first seven months of the year, to 523,000 mt from 628,000 mt during the January-June period in 2020.

July 2021 imports were down 76 percent, to 23,000 mt from 95,000 mt in July 2020. The July 2021 tons came from Indonesia at 15,000 mt and Mexico at 8,000 mt. The tightness of the regional market was shown by the Mexico purchase. China made no purchases of Mexican ammonia in all of 2020, nor in the first half of this year.