All posts by webster@kennedyinfo.com

DSM resolves emission fine

Augusta, Ga. — DSM Chemicals North America, which produces caprolactam and ammonium sulfate at its plant here, has settled a $23,750 fine for excessive chemical emissions and is on warning from state environmental inspectors regarding further releases, according to the Georgia Environmental Protection Division (EPD). A consent order posted earlier this month and dated Feb. 29 said DSM was in violation of its regulatory permit for volatile organic compounds. “They’re under an order which requires them to get back into compliance and stipulates penalties for any further excess emissions,” Karen Hayes, manager of the stationary source compliance programs, told Green Markets. The plant will also be required to make a series of repairs and conduct follow-up monitoring, the order said.

Jacobs to build new sulfuric acid plant for Vale

Pasadena, Calif. — Jacobs Engineering Group Inc. announced that it has received a contract from Vale Canada Ltd. to design and supply a new sulfuric acid plant for its Sudbury smelter in Ontario, Canada. The acid plant contract, with an estimated value of $55 million, includes the design of the complete sulfuric acid plant contact section, as well as supply of all equipment and some materials. The plant features Jacobs’ proprietary Chemetics® equipment throughout, including stainless steel converter (with internal exchanger), radial flow gas-gas exchangers, acid coolers, and SARAMET® distributors and piping. The bulk of the proprietary equipment is expected to be fabricated at Jacobs’ facility in Pickering, Ont. The new acid plant is part of Vale’s Clean Atmospheric Emissions Reduction (AER) Project. The overall AER Project is designed to cut sulfur dioxide emissions at the Sudbury site by more than 70 percent from current levels. Vale considers the Clean AER Project to be the most significant environmental investment ever contemplated in the Sudbury Basin. This is the second major project for Jacobs at the site; it was awarded a contract to modernize the existing acid plant in 2002.

Sumitomo, Mitsui consider fert consolidation

Tokyo — Sumitomo Corp. and Mitsui & Co. Ltd. have agreed to launch a detailed examination to integrate the two companies’ Japanese fertilizer business. Under the basic agreement concluded between Sumitomo and Mitsui, the two companies are examining the establishment of a new company through a joint incorporation-type company split, allowing the newly-merged company to take over the fertilizer raw materials export and import business of both companies. At the same time, the two companies are planning to merge Japanese manufacturing and sales subsidiaries Summit Agri-Business Corp. and Mitsui Bussan Agro-Business Co. Ltd., and make it a wholly-owned subsidiary of the newly-merged company. In March 2010, Sumitomo and Mitsui entered into a business alliance in the overseas fertilizer raw materials import business, and the companies have promoted cooperation in areas such as the joint allocation of vessels and joint logistics. After achieving results through this alliance, discussions continued with a view to expanding the scope of the alliance.

Israeli enviros unhappy with NH3 decision

Haifa — Israeli environmental activists are not happy with the March 1 decision by the country’s Environmental Protection and Industry and Trade Ministries to move the anhydrous ammonia storage facility from Haifa, arguing that it might not happen until 2015 or 2016. They base this on the ministries’ support for a production plant in the Negev that would use natural gas from Israel’s huge offshore reserves. The gas from the Tamar field is not expected to reach the country before mid-2013, while the larger Leviathan field is not expected to begin production before 2016. Ratio Oil Exploration, which has proposed building an ammonia plant in the Negev and is a partner in the Leviathan field, has not even started the approval process for building a plant. In the meantime, environmental groups want the 12,000 mt ammonia storage plant, located within the city limits of Haifa, to be shut down immediately. On March 7 they launched a campaign to raise public awareness just as the matter was being taken up by a municipal court in Haifa. The Haifa Municipality has been trying to get the storage facility, which is owned and operated by Haifa Chemicals, out of the city for several years. A noisy demonstration was held outside the court by members of the Green Course movement and the Coalition for Public Health, who object to the continued delays in dealing with the facility and say that it is a public health hazard and a security risk. The judge agreed to a request by Haifa Chemicals to put off a decision for two more months in order to give the sides more time to assess the risks posed by the ammonia plant.

Investment banks lower estimates for ICL

Tel Aviv — Two American and Israeli investment banks recently lowered their estimates on Israel Chemicals Ltd. (ICL). Citi Capital Markets predicted that earnings at the Israeli fertilizer and specialty chemical maker would total $1.12 per share, 8 percent lower than the investment bank’s previous forecast. Earnings for 2013 were estimated at $1.12, or 4 percent lower than an earlier prediction. Citi based its new estimates on an expected drop in potash prices to $475/mt, and also cited India’s decision to halt fertilizer imports in the first quarter of 2012 to control subsidy prices. The report also noted that volumes in Europe had been affected during the first quarter. Israel’s Clal Finance expects an agreement with China in the near future will be a key indication of what can be expected in the potash market. The investment bank report believes that a price of $470/mt would be an achievement, with anything below $450/mt a negative indication for the direction of the potash market. The situation in India is also a concern for ICL, and uncertainty there is likely to have a negative impact. After several years of rapid revenue growth, Clal is predicting a 4.4 percent decline in revenues for ICL in 2012, though the investment bank expects growth to resume in 2013. The projected drop in revenues is a result of lower potash and fertilizer prices due to increased supply.

China to continue zinc study

Beijing — The International Zinc Association (IZA) signed an agreement with the Ministry of Agriculture (MOA) to extend an ongoing cooperative project to promote zinc fertilizers in China. IZA said the extension is a result of an extremely successful zinc fertilizer research and demonstration effort that began in 2011, with significant improvements in crop yield and economic return for the farmer. The two-year extension will run through 2013 and will include expanded crop trials, demonstration plots, training, and technology transfer. The total budget is $500,000, and will be funded jointly by both parties. The goal is to improve crop production, human health, and farmers’ incomes in China through the use of zinc fertilizers. The MOA recently released their national "Guidance for Promoting Fertilizer Application," which recommends the increased use of zinc fertilizer in every region of China, highlighting the importance of this project. IZA says 14 percent of China’s 1.3 billion people are at risk for zinc deficiency, which poses such health problems as stunting, impaired development, and weak immune systems. China is one of the largest agricultural countries in the world, and over 50 percent of the nation’s arable soils are zinc deficient. The use of zinc-containing fertilizers not only increases crop yield, but crop nutrition as well, which means significant improvement in dietary nutrition.

EPA probe of fertilizer plant puzzles locals

Deer Island, Ore. — Environmental Protection Agency Region 10 officials have confirmed that a criminal investigation is being conducted into ammonia leaks in 2010 at Dyno Nobel’s Deer Island fertilizer plant, but won’t provide any details about how long the investigation has been going on or when it is expected to be completed. “If we were finalizing the investigation we would submit a press release, and apparently it has not reached that stage as yet,” Wally Moon, EPA Region remedial project manager, told Green Markets. He declined to provide any further information. At the same time, many of those on the local scene are wondering what all the fuss is about, although the local Willamette Weekly reported that plant manager Greg Godfrey informed his employees that if they are contacted about the situation they should refer questions to the company’s attorney. The operator at the plant declined to connect Green Markets calls with the manager, and calls to Dyno Nobel’s headquarters in Salt Lake City were not returned. Division Chief Ron Youngberg with the Columbia River Fire and Rescue told Green Markets that over the years there have been several leakages of ammonia, but they have been mostly minor, and that over his 30 years with the department there has never been a situation where citizens have had to evacuate the area. “The releases I have been involved with have been mostly connected to power outages or starting up the plant,” Youngberg reported. “There have been small releases that have been brought under control, and none of them involved the fire department. EPA just made contact with us several weeks ago, and I haven’t heard from them since.” Youngberg added that the plant has been under several different owners, and is a solid operation under Dyno Nobel. The plant manager did tell the press that EPA criminal investigators interviewed workers Jan. 23 about the leak, adding that “because it’s a criminal case, I’m assuming that they think we intentionally violated the law, which isn’t the case.”

BioNitrogen details deal with United Suppliers

Doral, Fla. — BioNitrogen Corp., a developer of a patent-pending technology for converting renewable biomass waste into urea, reports that it has finalized the purchase contract with United Suppliers, as previously announced on Feb. 2, 2012 (GM Feb. 6, p. 12). The company says it will provide United with some 1.25 million st of urea over a 10-year period. In doing so, it said it will use commercially reasonable efforts to construct up to three manufacturing plants in the West Texas region using its proprietary systems; the plants will be devoted to urea and fulfill the company’s supply obligations to United. The urea will be standard granular form and contain at least 46 percent nitrogen content. BioNitrogen estimates that it will have output capacity of approximately 125,000 st of product annually at each plant, and agrees to make available to United annually at least 125,000 st of the product capacity from the West Texas plants. After construction, BioNitrogen said it will endeavor to operate each facility seven days a week, based on a 49-week year. BioNitrogen will bulk load product five days a week for transportation by truck or rail. The term of this agreement will commence on the date on which BioNitrogen completes construction of its first plant and begins accepting purchase orders. The agreement is for ten years, and will automatically renew for one additional year unless it is terminated in writing by either party at least 120 days prior to the end of the term.

TFI recognizes 15 growers for 4R efforts

Washington — The Fertilizer Institute (TFI) has chosen 16 American farm operations to receive honorable mention in TFI’s 2012 4R Advocates recognition program. The honorable mention winners represent farmers and fertilizer retailers across the nation dedicated to the 4Rs of nutrient stewardship – utilizing the right nutrient source at the right rate, the right time, and in the right place. “These growers are implementing best management practices that help match nutrient supply with crop requirements to minimize losses from fields,” said TFI President Ford West. “Implementing the 4Rs helps farmers achieve economic, social and environmental benefits.” The 2012 4R Honorable Mention advocates, along with the retailers that nominated them, include Clay Barr, Pomeroy, Wash., nominated by Crop Production Services, Pomeroy, Wash.; Brandon Bonk, Bonk Farms LLC, Dover, Del., nominated by Willard Agri-Service of Greenwood, Greenwood, Del.; Roger Brining, Great Bend, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Steve Conrad, Gore, Okla., nominated by Crop Production Services, Webber Falls, Okla.; Kent and Kevin Dye, Dye Brothers Partnership, nominated by Crop Production Services, Paris, Mo.; Roger Fanshier, Great Bend Cooperative Association, St. John, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Hannebaum Farms, West College, Ind., nominated by Crop Production Services, Brookville, Ind.; Mike Irey, U.S. Sugar Corporation, Clewiston, Fla., nominated by Florikan ESA LLC; John Keenan, St. John, Kan., nominated by Great Bend Cooperative Association, Great Bend, Kan.; Mike Kosman, Fort Morgan, Colo., nominated by Crop Production Services, Fort Morgan, Colo.; Jim Livingston, Oblong, Ill., nominated by Wabash Valley Service Company, Oblong, Ill.; Rawson Farms, Farmwell, Mich., nominated by Crop Production Services, Henderson, Mich.; Steve Smith, Bladenboro, N.C., nominated by Crop Production Services, Orum, N.C.; Maurice Smitherman, Shady Grove Dairy, East Bend, N.C., nominated by Crop Production Services, Hickory, N.C.; Tom Terryberry, Terryberry Farms, Imperial, Neb., nominated by Crop Production Services, Imperial, Neb.; and John Woodruff, Los Barros, Calif., nominated by Crop Production Services – Merced, Merced, Calif.

Synagro to develop biosolids recycling center

Houston — Synagro Technologies Inc. said March 14 that it has entered into a lease agreement with the Charlotte County Public Works – Solid Waste Division to develop a regional biosolids and green waste Bio-Recycling Center at the County’s Zemel Road landfill near Punta Gorda, Florida. Under a 20-year agreement, Synagro will design, finance, build, and operate a covered windrow composting facility that will recycle approximately 50,000 st of biosolids per year. Synagro said biosolids management options for southwest Florida are limited, as much of the area lies within the sensitive watersheds of the Okeechobee and Caloosahatchee rivers. Beginning in 2013, land application of Class B biosolids will be subject to more stringent nutrient management planning requirements. As a result, many sites that have historically been fertilized with recycled biosolids may no longer be available. This leaves distant land application sites and/or landfills located in excess of 150 miles from many of the region’s wastewater treatment plants as the only options for some municipalities, increasing costs and greenhouse gas emissions associated with transporting biosolids. Synagro’s Bio-Recycling Center will substantially reduce the transportation of biosolids when compared to those landfills and land application sites, lowering fossil fuel consumption and impact on the environment. Additionally, the new facility will enable communities in southwest Florida to meet state-wide recycling goals since the composting plant will receive and recycle green waste as well as biosolids. The Class AA compost produced by the facility can be used by public works agencies in the region for maintaining playing fields, golf courses, and community plantings, and repairing construction sites, potentially reducing budgetary impacts associated with grounds maintenance. Other economic benefits include the creation of new local jobs and a decrease in Charlotte County’s operating costs.