Israeli-Linked Tanker Carrying Phos Acid Captured, Released in Gulf of Aden

An Israeli-linked chemical tanker carrying a cargo of phosphoric acid was seized in a suspected piracy incident on Nov. 26 in the Gulf of Aden, about 30 nautical miles off Yemen’s southern coast. The vessel and its crew were reported safe later that day following intervention by a US Navy warship.

The tanker Central Park was briefly boarded and captured by unknown attackers on an eastbound voyage, but was released after the US warship Mason, with help from allied ships, quickly responded to a distress call from the ship, according to a report by The Maritime Executive, citing the UK’s Maritime Trade Operations Agency.

The Central Park is managed by Israeli shipping magnate Eyal Ofer’s ship management company, London-based Zodiac Maritime Ltd. A Nov. 27 statement from Zodiac, cited by The Maritime Executive, said the 19,998 mt tanker had a full cargo of phosphoric acid. According to Reuters, the ship was carrying Moroccan phos acid destined for Asia.

The five attackers were taken on board the US warship, according to media reports, and Zodiac said the crew and ship were unharmed.

The attempted hijacking follows the seizure of an Israeli-linked car carrier off the Yemeni Red Sea port of Hodeidah last week by Yemen’s Houthi rebel group. These incidents are the latest in a series of attacks in Middle Eastern waters since the war between Israel and Hamas broke out on Oct. 7.

The attack on the Central Park appears to have been carried out by armed Somali pirates, not Yemeni Houthis, despite the firing of missiles from Houthi-controlled territory in Yemen after the boarding of the tanker, according to a Reuters report, citing the Pentagon on Nov. 27.

The Gulf of Aden and the Western Indian Ocean were once hotspots for Somali pirate attacks on foreign-flagged merchant shipping, though few attacks have been reported in recent years. There are signs of a revival in piracy, however, with the seizure by Somali militia of a foreign-flagged commercial fishing vessel off northeast Somali’s Puntland region on Nov. 22 and the demand for a $400,000 ransom, according to The Maritime Executive.

Ceres Solutions, Co-Alliance to Pursue Merger Vote

Indiana-based cooperatives Co-Alliance Cooperative Inc. and Ceres Solutions Cooperative Inc. on Nov. 29 announced an agreement to pursue a merger. The decision follows a three-month due diligence period announced in September (GM Sept. 1, p. 1) to investigate the potential synergies of a combined organization.

Upon reviewing the final due diligence report, the Boards of Directors of both cooperatives unanimously approved a member vote for the merger to drive efficiencies, share expertise, and deliver a diverse portfolio of services to customers, the companies announced.

“After considerable analysis, we believe this merger will provide a tremendous opportunity for our 20,000 farmer-owners. This will allow our team to provide more robust service offerings, greater investments in our assets, and an unmatched customer experience,” said Jeff Troike, CEO of Ceres Solutions. “Together we know there will be great synergies from this historic merger with the Co-Alliance team.”  

If the membership approves the merger, the new cooperative will have 1,800 full-time employees serving hundreds of rural communities in Indiana, Illinois, Michigan, and Ohio. Membership voting will take place in the coming weeks with the hope of completing the merger in early 2024.

“This merger drives our mission of serving our farmer-owners and the communities where we live and work,” added Kevin Still, CEO of Co-Alliance Cooperative. “The combined strength and legacy of success of Ceres and Co-Alliance creates a powerful partner for our farmer-owners and customers, helping them grow future generations. We are excited about this dynamic combination and what it means for the strength and future of the cooperative system.”

Based in Indianapolis, Co-Alliance is the result of the merger of five cooperatives in 2002, but its roots date back to the 1920s. The company provides agronomy, propane, fuels, grain, seed, hog production, and feed products and services from 79 locations in Indiana, Michigan, and Ohio, with approximately 51 of those dealing with agronomy.

Formed in 2007 as a partnership of local farmer-owned cooperatives, Ceres is based in Crawfordsville and has more than 750 team members in 37 counties across Indiana and Michigan. Ceres operates 65 locations with approximately 41 providing agronomy and/or fertilizer. Ceres added T&T Fertilizer Inc., Goshen, Ind., in 2020 (GM Feb. 7, 2020), and also completed mergers with North Central Co-op, Wabash, Ind., in 2017 (GM Aug. 18, 2017), and Falmouth Co-op in northern Michigan.

Ceres and Co-Alliance are already partners in Endeavor Ag & Energy, a joint venture that provides agronomy, propane, and feed services in north-central Michigan.

New China Policy to Limit Urea, DAP/MAP Exports; Urea Export Inspections Halted at Most Ports

A new policy instituted by the China Agricultural Means of Production Association and National Development and Reform Commission could lead to reduced availability of urea, DAP, and MAP in the global market.

Under the policy, which came together during a meeting with the two regulatory agencies and 15 Chinese trading companies, total fertilizer exports will be limited to 3-4 million mt through the first quarter of 2025. In addition, China has immediately halted urea export-related inspections at most ports, although large quantities already cleared for India are not affected.

The policy will establish quotas for traders, with industry sources expecting Sinofert and CNAMPGC to get the lion’s share of the quotas. The plan calls for traders to buy directly from the factory at an ex-plant price and then decide to export or keep the product in the domestic market.

Once the total amount of allowed exports is achieved, one source said, no more exports will be allowed, and traders holding material will be forced to sell it in the domestic market.

The plan lumps the fertilizers into one basket. One trader noted that if Chinese traders secure urea for the next Indian tender, most of the allotment of all fertilizers could be covered in one go, leaving DAP and MAP buyers with no options.

So far this year, China has exported 5.7 million mt of MAP and DAP and 3.4 million mt of urea, according to Trade Data Monitor. Exports in previous years have also exceeded the new limits, except for 2022 when exports were restricted by the government.

China Exports
Year Urea, DAP, MAP DAP and MAP Urea
2018 12,400,805 9,957,804 2,443,001
2019 13,811,007 8,866,369 4,944,639
2020 13,713,062 8,262,975 5,450,087
2021 15,334,140 10,040,525 5,293,615
2022 8,439,435 5,610,147 2,829,288

One trader said the move could lead to lower export prices for the limited tonnage. Building up domestic stockpiles is designed to drive down prices. One source said the levels could be well below the global market.

All it would take is an additional $5-$10/mt to move the product to a port for export, said one trader, providing a limited amount of lower-priced material for the export market. Others were not so sure prices would come down.

Gibson Island Ammonia Decision Expected Soon

Incitec Pivot Ltd., Southbank, Victoria, expects to make a Final Investment Decision (FID) on its Gibson Island Green Ammonia Project in Brisbane, Queensland, by the end of the year, according to the company’s recently released Climate Change Report 2023.

The company, along with partner, Fortescue Future Industries (FFI), would construct a green hydrogen/ammonia complex at the site of IPL’s existing, but idled, nitrogen complex.

“Having completed Front End Engineering Design (FEED) stage this year, we are now working toward an FID,” said IPL Interim CEO Paul Victor. “If approved, as far as we are aware this will be the first world-scale conversion of an existing ammonia manufacturing facility to renewable ammonia production.”

The project received A$13.7 million from the Australian Renewable Energy Agency (ARENDA) to assist in the funding for the initial design. IPL expects additional government support will be required for the project to proceed.

Started in 1969, IPL idled Gibson Island last year due to its inability to economically source natural gas (GM Nov. 12, 2021). FFI’s proposed water electrolysis facility will produce up to 70,000 mt/y of renewable hydrogen, replacing Gibson Island’s need for natural gas.

The retrofitted plant ultimately could produce up to 400,000 mt/y of green ammonia, which could be exported to international markets, as well as used to produce fertilizers, or potentially used as a low-carbon fuel source for ports, airports, and heavy transport, IPL said. The existing ammonia plant has nameplate capacity of 300,000 mt/y, according to the company’s website.

The Gibson Island facility was Australia’s only urea production facility and had approximately 340,000 mt/y of capacity (GM Nov. 12, 2021). The upgraded complex will not produce the product. IPL will instead source urea from the new Perdaman Chemicals and Fertilisers Pty Ltd. urea plant (GM May 7, 2021) under a long-term contract.

While IPL said that green hydrogen is not expected to be price-competitive with natural gas for ammonia made for traditional uses until around 2040, it said ammonia made from green hydrogen has the potential to contribute significantly to the decarbonization of energy systems and heavy vehicle transport.

In total, IPL said its Incitec Pivot Fertilisers unit has invested some A$50 million in sustainability capital in decarbonization projects.

In the meantime, in its Dyno Nobel explosives business, IPL signed a Memorandum of Understanding (MOU) with Keppel Infrastructure Holdings Ltd. and Temasek in 2021 to investigate the feasibility of producing green ammonia at an industrial scale in Queensland and New South Wales for export to meet the rapidly growing market in Asia (GM Nov. 12, 2021).

Since that time, Keppel invested in the CQ-H2 Central Queensland Renewable Hydrogen Project at Gladstone. Based on the potential offtake of hydrogen from this project, IPL in May 2023 signed a second MOU with Keppel to explore building a world-scale green ammonia production and export facility, and also expanded its combined interests to the US and other geographies. Should it proceed, the Gladstone facility would be capable of producing up to 850,000 mt/y of green ammonia for both domestic and overseas consumption.

In the medium-to-long term, green ammonia could be an option for IPL Dyno Nobel’s small facility in Cheyenne, Wyo. IPL said that the plant represents almost all of the explosive units with less than 5% exposure to the declining thermal coal market, noting that it currently supplies ammonium nitrate explosives to the Powder River Basin.

In the near term, the coal exposure is being managed through further expansion into quarry, construction, and metals markets. However, as a secondary strategy, the Cheyenne facility is set to expand into the manufacture of diesel exhaust fluid (DEF), which is urea-based. IPL said this will further reduce the coal exposure by creating another income stream in the short term.

For the longer term, IPL is looking at converting Cheyenne from natural gas to green hydrogen for ammonia and reacting this with CO2 purchased by pipeline. As a result, IPL said the facility could be repurposed to produce ammonia-based fertilizers should the region transition away from thermal coal to farming, as is being progressed by the Reclaiming Appalachia Coalition, which is supported by the US Just Transition Fund. Both entities support local communities whose economies have been impacted by the decline of coal.

BLM Seeks Input on Revised Caldwell Canyon Mine Plan

The US Bureau of Land Management (BLM) is seeking public comment on a “revised” plan for a proposed phosphate mine. The Caldwell Canyon mine would sit on 1,830-acres in southwest Idaho. An earlier plan, which had been approved by BLM, was vacated by a federal judge this past June (GM June 9, p. 1).

In the current plan, P4 Production LLC, a subsidiary of Bayer AG, proposes to build the mine on a combination of public, state, and private land. The site includes approximately 420 acres of land that is already developed on Schmid Ridge about 13 miles east-northeast of Soda Springs, Idaho.

The mine proposal includes modifying existing lease boundaries, two new open mine pits, haul and access roads, various utility lines, water management features, monitoring wells, a shop, and office facilities.

BLM estimates that roughly 25% of domestically produced phosphate is mined in southeastern Idaho.

As part of the scoping process, BLM will hold a virtual public meeting on Dec. 7, 2023. Participants can register at: https://tinyurl.com/36z73b6d. Registrants will receive a link to join the meeting. BLM will also announce the public meeting information via newspaper notice, the project planning webpage, and email.

BLM is seeking public input during a 30-day comment period to help identify issues to be analyzed during a future environmental review. The public comment period opened on Nov. 22 with publication of a Notice of Intent in the Federal Register, and closes on Dec. 22, 2023.

Interested parties can submit input using one of the following methods: Through the BLM National NEPA Register; Email to BLM_ID_CaldwellRevisedMRP_EIS@blm.gov; and  delivered to Caldwell Canyon Revised Mine EIS, c/o Stantec Consulting Services Inc., 2890 East Cottonwood Parkway, Suite 300, Salt Lake City, Utah 84121.

The “revised” plan comes after a federal judge in June vacated BLM’s 2019 approval of the project. The US District Court for the District of Idaho had ruled in January that the BLM violated the National Environmental Protection Act and the Federal Land Policy and Management Act when it issued a final environmental impact statement and 2019 Record of Decision for the Caldwell Canyon Mine Project (GM Jan. 27, p. 1).

Environmental groups argued that BLM did not take a hard look at potential selenium pollution from the mine (GM May 20, 2022), nor did it consider the mine’s impacts on the threatened greater sage grouse.

On June 2, Judge B. Lynn Winmill agreed with the plaintiffs that the statement and record should be vacated. He said the standard the BLM applied when assessing the project’s impact on the habitat of the greater sage grouse population wasn’t as strict as the currently applicable standard, which calls into question whether the BLM can reach the same decision on remand. The BLM also did not take a requisite hard look at the direct, indirect, and cumulative impacts of the project on the sage grouse, Winmill said.

The judge also ruled that BLM failed to consider the indirect effects to public health by sending the phosphate rock to be processed at the Soda Springs plant, which would produce the herbicide glyphosate for use in Roundup products. The plant was listed as a Superfund site in 1990.

According to Winmill, the BLM tried to avoid the seriousness of its violation by attributing the concerns about human health and environmental impacts to historic processing activities at the plant and not to current operations. But “simply stating that no further analysis is necessary because the harm is from historic practices ignores the problem contained with the FEIS,” Winmill said.

P4 Production argued as intervenor that vacating the BLM’s approval would cost its parent company more than $3 billion. But P4 failed to establish that those are concrete losses, Winmill said, adding that the calculations were “vague and conclusory.”

The BLM and P4 also failed to demonstrate that equity demanded a more tailored remedy than vacating the earlier decisions, Winmill said.

P4 argued that the mine is crucial and is needed for the company’s elemental phosphorus plant operations near Soda Springs, formerly owned by Monsanto Inc. Company officials have said the Caldwell Canyon Mine would sustain about 185 mining jobs and 585 plant jobs for about 40 years, and would aid the region by providing $47 million annually in payroll, taxes, royalties, and purchases, as well as sustaining support and service jobs.

P4 would use mining methods at the Caldwell Canyon Mine similar to those used at the company’s Blackfoot Bridge Mine. Work would begin in time to transition from the Blackfoot Bridge Mine near the Blackfoot River, where ore is projected to be depleted in less than seven years.

Acron Posts 45% Decline in 3Q Net Profit

Acron Group reported a 45% decline in third-quarter net profit, to RUB6.56 billion (approximately $73.8 million at current exchange rates), down from the year-ago RUB11.82 billion, according to Bloomberg. Third-quarter revenue fell 15% year-over-year, to RUB42.58 billion.

Acron’s net profit for the nine months to Sept. 30 was down 70% year-over-year, to RUB25.64 billion ($310 million) from RUB86.32 billion ($1.22 billion), according to the company’s Nov. 28 IFRS statements. Nine-month EBITDA was down 51% year-over-year, to RUB51.78 billion ($626 million) from RUB105.76 billion ($1.5 billion), while revenue for the period fell 34%, to RUB130.5 billion ($1.58 billion) from last year’s RUB197.5 billion ($2.8 billion).

Acron’s total commercial output of fertilizers, apatite concentrate, and industrial products for the nine-month period increased 1.2% year-over-year, to 6.271 million mt from 6.198 million mt, though total commercial sales were down 1%, to 6.34 million mt.

Agricultural Retailers Association (ARA) – Management Brief

At its 2023 Conference and Expo in Orlando, Fla., on Nov. 28-30, the Agricultural Retailers Association (ARA) presented several awards and announced both outgoing and incoming board members.

Winner of the 2023 Jack Eberspacher Lifetime Achievement Award was Joe Hodges, formerly of The Andersons Inc., Douglass Fertilizer and Chemical Inc., and the Florida Fertilizer & Agrichemical Association. This year’s Distinguished Service Award went to Toby Hlavinka, President and CEO of American Plant Food Corp. (APF), Galena Park, Texas.

The Retailer of the Year Award went to Mid Kansas Cooperative (MKC), Moundridge, Kan., and was accepted by President and CEO Brad Stedman and Executive VP and CFO Dave Spears. The 2023 AGCO Operator of the Year winner was Lee Pemberton of Makin Trax Inc., Pembina, N.D. ARA’s new Excellence in Advocacy Award went to Mike Twining, VP of Sales and marketing for Willard Agri-Service, Frederick, Md. Another new award, the Business Innovation Award sponsored by Farm Journal and Ever.Ag Agribusiness, went to GreenPoint Ag, Decatur, Ala.

Outgoing ARA Board Chair Ian McGregor, President of The McGregor Co., Colfax, Wash., announced incoming Board Chair Amy Asmus, Owner and Co-Founder of Asmus Farm Supply Inc., Rake, Iowa.

ARA also welcomed incoming Board Members Jeff Freeman, Marion Ag Service; Brent Wallner, Brandt Consolidated; Brad Locke, Valley Agronomics; Teresa McNeal, Sygenta; Mark Shillingford, BASF; Bob Ness, The Mosaic Co.; Molly Biedenfeld, Yara North America; and Sam Pendleton, Easy Automation. Retiring Board Members include Richard Lloyd, Superior Ag; Gary Vogen, Yara North America; Ernie Chappell, Ever.Ag Agribusiness; Toby Hlavinka, APF; Ian McGregor, The McGregor Co.; Jim Davis, Meherrin Ag; Tim Richie, The Mosaic Co.; and Mike Hofer, BASF.

ARA also used the conference venue to recognize a group of emerging ag retail leaders as part of its Rising Stars professional development program, sponsored by Atticus. This year’s members include Newt Albert, The Equity; Nick Arnold, Rick Clark, Matt Dirlam, Dane Hardebeck, and JD Hoffman, Co-Alliance Cooperative; Julia Austin, GreenPoint Ag; Joshua Beyer, Willard Agri-Service; Scott Birth, Rocky Mountain Agronomics; Austin Cambell, MKC; Brian Kintelmann, Brandt; Kinsey Hall, Growmark Inc.; Hannah Kammeyer, Marion Ag Service Inc.; Amanda Kerbs, Simplot Grower Solutions; Mike Lee and James Ragsdale, Southern States Cooperative Inc.; Parker Ludeking, Insight FS; Dylan Meyer, River Valley Cooperative; Curtis Miller, Eldon C. Stutsman Inc.; Chelsea O’Brien, Superior Ag; Tyler Schultes, Landus; and Celsey Stevenson, New Century FS Inc.

Falling Gas Prices Boost Poland’s Grupa Azoty

Shares in Grupa Azoty SA surged 7.2% on Nov. 29, the most since November 2022, as investors see Poland’s biggest fertilizer producer benefiting from the fast drop in European natural gas prices, Bloomberg reported.

Azoty’s shares closed at 22.40 zloty per share (approximately $5.70 per share at current exchange rates) on Nov. 29, rebounding from a three-year low earlier this month.

Even so, the state-controlled company is down more than 40% this year as lower demand for fertilizers and higher costs pushed it to losses in all three quarters this year (GM Nov. 24, p. 1; Oct. 6, p. 24; Sept. 22, p. 25; May 19, p. 26).

Interoceanic Launches EM2 Enterprises LLC

Interoceanic Corp. (IOC), White Springs, N.Y., has announced the launch of EM2 Enterprises LLC, an affiliate of IOC established in White Springs as an investment platform with a focus on small and mid-sized companies in the fertilizer, chemical, lawn & garden, midstream, and transportation asset industries.

“We believe there is a shortage of options for private and family-owned businesses as they look to raise capital, sell their business, transition a company to future generations, or engage in investment opportunities and asset acquisition,” IOC said in a statement. “Not only can EM2 provide capital, but we can also provide infrastructure and knowledge to help businesses scale.”

IOC said it believes many owners who are exploring transactions are looking for an alternative to Private Equity and large investment banks to protect their family’s interests and employees. The company said its knowledge, experience, and track record as a private, family-owned business gives it a better understanding of the needs of private businesses.

“By partnering with EM2 we can provide back-office services, such as accounting, ERP platforms, HR, compliance, and other needs of small private businesses that take many years to build,” the company said. “Working with EM2 can provide immediate infrastructure and working capital to allow businesses to scale and focus on commercial priorities.”

IOC’s family of companies includes PCI Nitrogen, Pasadena, Texas, one of the largest global producers of bulk, synthetic grade granular ammonium sulfate; Chimico Logistics LLC, which owns an ammonia barge, a sulfuric acid barge, and a tanker barge dedicated to PCI and other clients in the Texas Gulf Coast region; Chimico Rail LLC, an owner of more than 450 fertilizer, sulfuric acid, and molten sulfur tank cars; and Spring Valley USA, which operates fertilizer mixing, screening, and bagging facilities in Jackson, Wisc., and Fostoria, Ohio.

IHI, Vopak Ink MOU on NH3 Terminals

IHI Corp., Tokyo, and Royal Vopak (Vopak), Rotterdam, The Netherlands, on Nov. 21 announced the signing of a Memorandum of Understanding to jointly explore the development and operation of ammonia terminals in Japan. They will also assess collaboration outside of Japan.

IHI is Japan’s leading manufacturer of ammonia storage tanks, estimating that it has designed and constructed 70% of those operating in the country. Vopak currently has ammonia storage operations in China, Saudi Arabia, Singapore, Malaysia, and the US.

Most recently in the US, Vopak and global partners agreed to collaborate on the pre-FEED for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel (GM Oct. 6, p. 1).

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