Los Angeles-Rentech Inc. said May 29 that it has signed agreements with Peabody Energy whereby Peabody will fund up to $10 million of the engineering and development costs for Rentech’s planned coal-to-liquids project at its Rentech Energy Midwest Corporation facility (“REMC”) in Illinois. Peabody has also agreed to a long-term agreement to supply the facility with nearly 1 million tons of coal annually and obtain the right to purchase a 20 percent equity interest in the project. The project is anticipated to be the first commercial coal-to-liquids facility in the United States. It entails converting the existing REMC natural gas-fed ammonia fertilizer plant into a coal-to-liquids and ammonia facility that will use clean coal gasification technology and Rentech’s patented and proprietary Fischer-Tropsch (FT) process – the Rentech Process – to produce ultra-clean transportation and aviation fuels and fertilizer. Upon the expected completion of the plant conversion by 2010, REMC is anticipated to produce at least 1,250 barrels per day, or 17.8 million gallons, of clean Fischer-Tropsch fuels annually. The facility is also projected to produce approximately 545,000 st of ammonia and other nitrogen fertilizer products per year.
All posts by traceybg@gmail.com
Rentech reports $17.2 M net loss in 2Q
Los Angeles-Rentech Inc. reported a net loss of $17.2 million on revenues of $16.9 million for the second quarter ending March 31, 2007, compared to a year-ago net loss of $12.5 million on revenues of only $25,000. Rentech acquired the East Dubuque, Ill., nitrogen plant from Agrium Inc. in April 2006, thus giving it a boost in revenues. Rentech had a six-month net loss of $25.9 million on revenues of $52.3 million, versus the year-ago net loss of $18.2 million on revenues of $66,000.
ICL Fert sales up 57 percent in 1Q
Tel Aviv-ICL Fertilizers, a unit of Israel Chemicals Ltd., reported a 57 percent increase in sales during the first quarter ending March 31, 2007, to $451.8 million versus the year-ago $287.9 million. However, sales should have been up due to the year-ago stalemate in potash negotiations to China and India. Now both potash and phosphate volumes are up, as are prices for both products. ICL Fertilizer operating income was $75.8 million versus the year-ago $54.5 million. Company-wide, Israel Chemicals reported net income of $95.4 million on sales of $883.0 million, versus the year-ago $96.6 million and $717.0 million, respectively. The company said improved fertilizer results were somewhat offset by a reduction in sales of bromine and flame retardants. The shekel’s increase against the dollar was also a factor.
IFC to help fund new Egyptian phosphate plant
New Delhi-IFC, the private sector arm of the World Bank Group, has signed an agreement to invest in the Indo-Egyptian Fertilizer Co., a joint venture between Indian Farmers Fertilizer Cooperative Ltd. (IFFCO) and El Nasr Mining Co. of Egypt. The $80 million loan for IFC’s own account and a loan of up to $170 million from participating banks will be used to set up a phosphoric acid plant in Edfu, in upper Egypt. The project will create 350 permanent jobs and 1,000 temporary construction jobs.
Two burned in Florida pelletizer plant blast
Tampa-Authorities are still investigating a brief, sudden explosion early on May 26 that burned two workers in the sludge drying facility at the Port of Tampa wastewater processing plant. Plant Manager Phillip Clark told Green Markets that the momentary explosion occurred between 6 and 7 a.m. because of excess dust generated in the process, which may have been triggered when something “got out of whack” in the mixture of wet and dry sludge. He said that dust is an age-old problem with this type of operation. The two workers, who suffered first and second degree burns of the hands, arms, and neck, were treated and released at a local hospital. The plant produces pelletized fertilizer for marketing by Synagro. A similar explosion occurred March 13 at a plant operated by Synagro in Hagerstown, Md., leaving a gaping hole in the roof. There were no injuries at that time, and Clark said there was no connection between the two incidents. In other news, two unrelated fertilizer incidents occurred the same week – one May 25 at Cochranton, Penn., when a small amount of anhydrous ammonia was released while a worker was transferring from a 1,000-gallon tank to another storage container. According to press reports, the state police sealed off a stretch of Route 285 near the incident for a short time while the ammonia cloud dispersed. No one was evacuated. In the other mishap, on the same day, a tanker truck driver was seriously injured and 52,000 pounds of liquid nitrogen spilled in a collision with another truck on Indiana Route 3. The tanker veered into a ditch, overturned, and pinned the driver inside for a brief time, investigators told reporters. The tanker was transporting the fertilizer from Lima, Ohio, to Eli Lilly.
Train rams fertilizer truck with 10 tons of potash
Salem, Ore.-Everyone at Fitzmaurice Fertilizer Inc. was trying to recover from the shock of last Wednesday morning, when one of their fertilizer trucks carrying a full load of granular potash was rammed by a Pacific Western freight train. One of the owners, Matt Fitzmaurice, was reluctant to answer questions because he “needed time to figure out what’s going to happen.” He confirmed that no one was injured and that the driver escaped in time. Investigators from the Marion County fire district were still trying to figure out if the driver just didn’t see the train or something else happened at a crossing in Keizer on the southern edge of Salem near Interstate 5. “I don’t know if he didn’t think the train was moving or what,” Chief Roy Hari of the Marion County Fire District No. 1 told local reporters. “The train just smacked right into him, flipped the trailer over and dumped it into the ditch.” One of those on the scene said that the train struck the rear trailer of the fertilizer truck, which disconnected and allowed the driver to walk away unscathed. Fitzmaurice said the rig was returning to the company’s Salem plant from Marion Ag Services with 10 tons of 62 percent granular potash. A Pacific Western spokesman told Green Markets that the 17 cars were fully loaded and headed for an unnamed military base. He said railroad cleanup crews brought in an air tanker to spray the fertilizer, spread it over an acre or more with diesel, and then drop flares to ignite and burn it away. He said the freight train was delayed for two days, but was finally able to get on its way later Thursday. The Oregon rail crossing collision is the second in two weeks to involve fertilizer loads. On May 16 a Union Pacific train crashed into a tractor/truck pulling a trailer with 4,500 gallons of liquid fertilizer in two tanks. The fertilizer was spread for blocks, authorities reported.
Martison Phosphate estimates, plans reported
Toronto-The Martison Phosphate Project, near Heart, Ont., has a measured and indicated resource of 62.2 million mt averaging 23.55 percent P205 and .34 percent Nb2O5, according to PhosCan Chemical Corp. and Baltic Resources Inc., partners in the project. The partners say there has been significant progress on the pre-feasibility study. They say contractor quotes for mining have been obtained and preliminary processing costs and metallurgical parameters are being used to design the pit based on the economics of mining and producing phosphate concentrate acceptable as feed for the phosphoric acid plant. Continued studies seek to mine the most profitable phosphate in the early years by maximizing quality and grade and minimizing the depth of overburden. Product is currently being evaluated in Florida. A 400,000 mt/y phos acid is being eyed for the project, with plans for the acid to eventually be used as feedstock for higher-value fertilizer and industrial products.
Illinois awards $535,000 for ammonia security
Springfield, Ill.-Illinois has spread the second and final installment of the governor’s anhydrous ammonia security grants – amounting to $535,000 – among 50 agrichemical dealers, according to Jim Larkin, who administers the program in the state’s agriculture department. Larkin said the grants will primarily help with the purchase of locking devices, security cameras, and lighting, and in seven cases for treating the ammonia with the dye additive GloTell to discourage thefts for use in making methamphetamines. “We didn’t have as many additive requests as we expected,” he reported, adding that there was no interest at all in calcium nitrate being used in Iowa – probably because it’s still considered by some as unproven. But the department plans to continue to monitor the effectiveness of both additives. One of the grants, awarded to Effingham Equity for nearly $153,000, represented a third of the total. Larkin explained that in this case the money will be used for 12 different Effingham facilities in the south/central part of the state. Other larger grants, including $54,600 for AgLand FS Inc. in Pekin and $49,600 for Evergreen FS Inc. in Bloomington, were also for multiple facilities, Larkin said. Overall, he noted, 68 companies were granted funding for locking devices, 20 for security cameras, and 25 for lighting. He said that it’s up to the legislature to determine whether there will be any money for additional security help. The Illinois Fertilizer & Chemical Association said the program has been a big help and should be continued. “Partnering with the State of Illinois to enhance security and prevent ammonia theft not only improves safety and security at facilities, but also helps protect everyone in rural Illinois who has been dealing with meth-related problems for nearly a decade now. It is our hope that we can continue this valuable program in the future,” commented IFCA President Jean Payne.
Hexion acquires German resins business
Columbus, Ohio-Hexion Specialty Chemicals, the world’s leading global source for thermoset resins, has announced that it has reached a definitive agreement to acquire the German resins and formaldehyde business of ARKEMA GmbH. Based in the Leuna industrial park, located in east central Germany, the ARKEMA German resins and formaldehyde business manufactures formaldehyde and formaldehyde-based resins, including urea-formaldehyde, phenol-formaldehyde, and melamine-based resin systems. These resins are used to manufacture engineered wood panels, including oriented strandboard, particleboard, and medium density fiberboard. The business also produces impregnation resins used to laminate decorative paper surfaces to wood products. The business employs 100 people, and had 2006 revenues of approximately ?é¼101 million.
Fertilizer off the Illinois climate change list
Bloomington, Ill.-Illinois farmers probably won’t have to make any changes in their fertilizer practices because of the state’s efforts to cut down on greenhouse gases. The Illinois Governor’s Task Force on Climate Change recently decided the pain wouldn’t be worth the gain if farmers were required to cut down on nitrous oxide emissions by reducing nitrogen applications or revising their management practices, according to the Illinois Fertilizer & Chemical Association (IFCA). Jean Payne, president, told Green Markets that data provided by IFCA convinced the task force that the emissions from the nitrogen applied for agriculture purposes are so insignificant it wouldn’t warrant requiring “an important segment of the state’s economy to make such far-reaching changes.” Payne said IFCA convinced the task force that the growing of millions of acres of crops actually serves to sequester greenhouse gases as well as produce feedstock for manufacturing ethanol production, both of which are environmental advantages which outweigh the minimal gains that would have been achieved by reductions in fertilizer usage. Gov. Rod Blagojevich formed the advisory group, headed by Illinois EPA Director Doug Scott, to develop strategies for all segments of the economy to roll back emissions to 1990 levels by 2020. The panel was charged to complete its work by late June and submit recommendations in late July. Staff member Richard Breckenridge, IEPA agriculture and rural affairs adviser, remarked that nitrogen ranked high on the list because of the nitrous oxides factor, but there are plenty of others that are being looked at, including power and concrete plants, transportation operations, and others with the potential to have an impact on greenhouse emissions.