All Posts from February 11, 2022

AmmPower Aims to Put Green Ammonia Plants on Market by Late 3Q

Featured, Green Ammonia, News, Vancouver

Technology company AmmPower Corp., Vancouver, said on Feb. 9 that fertilizer dealers and distributors can have their very own green anhydrous ammonia plant for $3-$3.5 million.

The company said its Independent Ammonia Making Machines (IAMM™) can make four metric tons of ammonia per day, and the company aims for the first units to be available by late third-quarter 2022. Ammpower said it is now in discussions with potential customers regarding placing orders and delivery times. 

“The market has been extremely receptive to the concept of distributed ammonia production,” said Eric Kelley, AmmPower Director of Sales and Marketing, Agriculture. “The targeted pricing of the unit is intended to be disruptive and will represent an economically feasible solution for our intended customer base.”

“We are pleased with the response that our planned IAMM™ units are receiving,” said AmmPower CEO Gary Benninger. “The distributed production concept puts the control of the ammonia production closer to the end user and allows distributors and retailers to avoid the logistical supply problems that they so often encounter.”

AmmPower is currently completing assembly of its green ammonia synthesis demonstration unit, which will have a capacity or 50 kilograms per day (GM Nov. 5, 2021). It said this technology is scalable and will be used for the IAMM™ units.

In addition to the small ammonia plants aimed at the agriculture market, AmmPower has also recently announced plans for large green ammonia plants in Louisiana and Brazil (GM Feb. 4, p. 28; July 30, 2021).

Compass Fertilizer Earnings Up on Prices; Shares Drop on Salt Guidance

Earnings, News, Specialty, Sulfate of Potash

Compass Minerals, Overland Park, Kan., said on Feb. 8 that its Plant Nutrition segment posted fourth-quarter operating earnings of $9.5 million, up from the year-ago $3.3 million, on higher prices and lower volumes. Average prices were $660/st, up from $548/st, while volumes were off at 83,000 st from 143,000 st.

Total sales for the segment were $54.6 million, down from $78.2 million. EBITDA was up at $18.3 million from $12.3 million.

On a year-over-year basis, the company continues to expect sulfate of potash pricing strength in the fiscal 2022 first half to more than offset lower sales volumes, resulting in improved Plant Nutrition margins and profitability.

Compass anticipates first-half 2022 Plant Nutrition revenue of $85-$110 million and EBITDA of $25-$35 million. It expects full-year volumes of 280-320,000 st.

Compass-wide net earnings from continuing operations were $7.9 million ($0.23 per diluted share) on sales of $331.5 million, down from $14.7 million ($0.42 per share), up from $309.2 million. Net income, however, was $2.4 million ($0.07 per share), down from $28.1 million ($0.81 per share). Adjusted EBITDA was $67 million, down from $87.7 million.

Full-year net income was $14.3 million on revenue of $1.17 billion.

The company has lowered its fiscal 2022 outlook for adjusted EBITDA to $200-$235 million from $220-$250 million, largely due to trends in its Salt segment. Compass shares dropped as much as 10 percent on Feb. 9, the most since Nov. 16, after cutting its guidance, according to Bloomberg.

“We expect inflationary pressures and higher logistical costs to dampen our underlying earnings potential over the course of the fiscal year,” said Kevin S. Crutchfield, President and CEO. “In response, we are focused on offsetting these costs through continued pricing actions in our Plant Nutrition and consumer and industrial businesses, as well as throughout the upcoming highway salt bid season. Concurrently, as we advance our growth strategy into attractive, adjacent markets – lithium and next-generation fire retardants – I am confident these actions should result in attractive returns on capital, driving long-term value for shareholders.”

Fourth-quarter Salt operating earnings were $39.4 million on sales of $273.9 million, down from the year-ago $44.5 million and $228.5 million, respectively. EBITDA was off at $55.6 million from $61.9 million. Total salt sales were up at 3.44 million st from 2.78 million st, however, average prices were down at $79.63/st from $82.10/st.

Salt segment first-half revenues are seen as $590-$690 million, with EBITDA guidance dropped to $120-$160 million. Full-year Salt volumes are put at 11.8-12.8 million st.

CF, Nutrien Expected to Triple 4Q Earnings, Mosaic More Than Double

Earnings, Eastern Cornbelt, Featured, Saskatchewan, Tampa

Three major North American fertilizer companies are expected to see a tripling or doubling in earnings results for the fourth-quarter ending Dec. 31, 2021, according to the Bloomberg Consensus, the average estimate from major financial analytical firms.

CF Industries Holdings Inc., Deerfield, Ill., and Nutrien Ltd., Saskatoon, are both expected to triple their fourth-quarter adjusted EBITDA compared to year-ago levels, while The Mosaic Co., Tampa, would more than double its results.

CF, which will release results on Feb. 15, is expected to show fourth-quarter adjusted EBITDA of $1.2 billion, according to the analyst average, more than tripling the year-ago $338 million. The analyst range was $906 million to $1.34 billion. Full-year analyst estimates are $2.67 billion, up from 2020’s $1.35 billion.

Analysts are projecting fourth-quarter Nutrien adjusted EBITDA at $2.41 billion, versus the year-ago $768 million. Full-year adjusted EBITDA is seen as $7.07 billion, up from $3.67 billion. Nutrien will release results on Feb. 16.

Mosaic, which will release data Feb. 22, would more than double its fourth-quarter adjusted EBITDA, with the analyst estimate at $1.25 billion, up from the year-ago actual $508 million. Full-year adjusted EBITDA was put at $3.6 billion, up from 2020’s $1.56 billion.

Bloomberg Consensus

CF 4Q-21 Full-Year 21
Net Income $678.1 M $922.6 M
Revenue $2.48 B $6.45 B
Adj. EBITDA $1.2 B $2.67 B
Adj. Dil. EPS $3.54 $5.15
Mosaic 4Q-21 Full-Year 21
Net Income $720.8 M $1.73 B
Revenue $3.83 B $12.4 B
Adj. EBITDA $1.25 B $3.6 B
Adj. Dil. EPS $1.96 $5.07
Nutrien 4Q-21 Full-Year 21
Net Income $1.33 B $3.3 B
Revenue $6.44 B $26.3 B
Adj. EBITDA $2.41 B $7.07 B
Adj. Dil. EPS $2.35 $6.06

Itafos Resumes Brazil Sulfuric Acid Production; Partial Offtake Secured; SSP Remains Offline

Brazil, Houston, TX, News, News Briefs, Sulfuric Acid

Itafos Inc. Houston, said on Feb. 8 it has resumed sulfuric acid production at its Arraias plant in Brazil. It said it has completed the recommissioning of the previously idled plant on schedule, within budget, and with no reportable environmental releases or recordable incidents. The company announced in October that it planned to bring the plant back up (GM Oct. 22, 2021).

“We are pleased to have safely and successfully completed the recommissioning of the sulfuric acid plant at Arraias,” said G. David Delaney, Itafos CEO. “While we continue to evaluate strategic alternatives for Arraias, we are opportunistically restarting the sulfuric acid plant to supply market demand and deliver positive margins.”

The Arraias sulfuric acid plant has production capacity of 220,000 mt/y. The company expects to operate the plant with a base load capacity of approximately 10,500 mt/m.

Itafos said it has secured short-term sulfuric acid offtake agreements for the plant’s base load capacity with pricing linked to sulfur benchmarks. Based on market demand, the company expects to opportunistically produce additional volumes of sulfuric acid to be sold on the spot market.

The surge in fertilizer prices has also carried over to Brazil sulfuric acid mt CFR, which as of Feb. 4 was reported at $270-$275/mt CFR, compared to the year-ago $85-$90/mt CFR.

Itafos said the remainder of the infrastructure associated with Arraias’ vertically integrated phosphate fertilizer business, including its mine, beneficiation plant, acidulation plant, and granulation plant, remain idled following best practices.

Arraias has approximately 500,000 mt/y of single superphosphate (SSP) capacity, which can also include SSP with micronutrients (SSP+). At full SSP capacity it has approximately 40,000 mt/y of excess sulfuric acid, with gross sulfuric acid capacity of 220,000 mt/y.

Verde Receives Potash Mining Concession

Brazil, News, News Briefs, Potash, Specialty

Verde Agritech Plc, Belo Horizonte, Minas Gerais, Brazil, said on Feb. 10 it has received a Mining Concessionfor the extraction of up to 2.5 million mt/y of potash rich ore, which it can process into its multi-nutrient potassium products BAKS® and K Forte®. Verde’s product is sold internationally as Super Greensand®. With the new concession, the company said it is now fully permitted to produce up to 2.83 million mt/y.

“This mining concession marks one more milestone for Verde,” said Cristiano Veloso, Verde Founder and CEO. “It will supply raw material for our Plant 2, which will boost production and accelerate sales growth. It is also another important governmental stamp of approval for our efforts towards reducing Brazil’s crippling dependency on imported potash.”

Verde is targeting 700,000 mt of production in 2022 and 1.4 million mt in 2023.

Koch’s Enid, Fort Dodge Upgrades Expected Up in 2022; ATS, Beatrice Projects Complete

Featured, News, Specialty, UAN, Urea

Koch Fertilizer, Wichita, has updated the status of its plant upgrades. At the $150 million Enid, Okla., upgrade (GM March 12, 2021), the construction is complete on the new rail tracks and nearly complete on the new anhydrous ammonia truck loading racks. Koch installed some of the urea expansion equipment during the June 2021 turnaround, and the remaining construction is underway. Total project completion is anticipated later this year.

These Enid improvements, combined with the previous expansion, will allow the facility to supply up to 1.8 million st of ammonia upgrade products (urea, DEF urea solution, SuperU® fertilizer, and UAN) annually, according to Koch. The previous capacity was in excess of 1.5 million st/y, according to earlier reports (GM Sept. 6, 2019).

The current Enid investment builds on the $1.3 billion Enid expansion and modernization improvements made from 2014-2017 (GM Oct. 20, 2017). The centerpiece of that expansion was a new 900,000 st/y urea plant. The company also added 90,000 st of urea storage, an electric power substation, and DEF production, and tripled its SuperU production capacity.

Koch’s $140 million expansion at Fort Dodge, Iowa, is expected to be fully operational later this year. It includes an 85,000 st/y increase in ammonia capacity (GM Nov. 20, 2020). However, Koch said that a separate project, a new two-million-gallon ammonium thiosulfate (ATS) terminal at Fort Dodge that was announced last May (GM May 21, 2021), is complete and operational.

The $90 million Beatrice, Neb., expansion was completed and commissioned in the fall of 2021. It included an additional 75,000 st/y of UAN capacity (GM Nov. 13, 2020).

Consortium Completes Purchase of DuPont Clean Technology Business

News, News Briefs

A consortium of private equity firms has completed the purchase of the Clean Technologies business of DuPont de Nemours Inc. and named the new business Elessent Clean Technologies. The equity firms consist of BroadPeak Global LP, Asia Green Fund, and The Saudi Arabian Industrial Investments Co. (Dussur).

The new company is based in Chesterfield, Mo., and will supply process technologies to the fertilizer, chemical, metal, and oil refining industries. Technologies include MECS® sulfuric acid and environmental technologies, Belco® scrubbing technologies, Stratco® alkylation technology, and IsoTherming® hydroprocessing technology.

Project Haber Receives Major Project Status

Ammonia, Australia, News, News Briefs, Urea

Thebarton, South Australia-based Strike Energy Ltd. reports that its Project Haber has been awarded Major Project Status by the Australian Federal Government. This status gives Strike access to the Major Projects Facilitation Agency for approvals, project support, and coordination.

Project Haber is adjacent to Geraldton Port, Western Australia, and includes the development of a 1.4 million mt/y urea plant and an 800,000 mt/y ammonia plant (GM Jan. 15, 2021).

Leigh Creek Reports Carbon Neutral Milestone, Applies for Patent

Australia, News, News Briefs

Leigh Creek Energy Ltd., (LCK) Adelaide, South Australia, reported that its Leigh Creek Urea Project (LCUP) has become the first large-scale fertilizer project in the world to achieve Carbon Neutral status.

“Through our active participation in carbon offset projects, the Leigh Creek Urea Project (LCUP) has achieved carbon neutrality for FY-22 – the first large scale fertilizer project in the world to achieve this,” said LCK Managing Director Phil Staveley. “Our commitment to reaching carbon neutrality eight years earlier than originally planned not only aligns with the United Nations Global Compact principles, the world’s largest corporate sustainability initiative, but also promotes our values and purpose as an organization.”

In other news, LCK reported that it has applied to the Australian Patent Office to protect its intellectual property rights pertaining to predicting and controlling syngas operations that it has developed at the LCUP project. The company said it is likely to be the first of many patents protecting proprietary information and adding to the value of the project.

LCK plans to establish a 1 million mt/y urea facility utilizing in-situ gasification (ISG) at the Leigh Creek Energy Project (LCEP), located some 550 kilometers north of Adelaide and overlaying the Leigh Creek coalfield (GM Jan. 22, 2021).

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