Marsulex Granted Two New Patents

Marsulex Environmental Technologies Corp. (MET), Lebanon, Penn., reports that it has been granted two new U.S. patents, building upon its ammonium sulfate flue gas desulfurization (AS FGD) technology. It said the new patents represent enhanced processes for the removal of acidic gases from emission sources and the generation of multiple high-value byproducts.

The first new MET patent is directed at the expanded use of ammonia as the reagent by a simple and cost-effective method of removing hydrogen sulfide and mercaptans from various ammonia sources. The gaseous hydrogen sulfide and mercaptans are stripped and collected, preventing the gases from being released into the atmosphere. The invention delivers a process that enables users to avoid potentially expensive ammonia purification systems for the removal of hydrogen sulfide and mercaptans.

Additionally, MET was granted a patent for a process that further enriches the AS FGD system, in which additional saleable byproducts are generated. From this new invention, multiple saleable fertilizers are produced, as well as a chloride solution or solid for various beneficial applications.

“We are excited by both of these advancements that will assist a broader expansion of the AS FGD technology to the industrial and global markets,” said Amy Evans, MET’s Director of Technology.

MET said its technologies are successfully installed in over 22 countries across the globe, and consistently meet or exceed clients’ regulatory requirements.

Saudi Aramco to Buy Majority SABIC Stake

Saudi Aramco, Riyadh, on March 27 announced the signing of a share purchase agreement to acquire a 70 percent majority stake in Saudi Basic Industries Corp. (SABIC) from the Public Investment Fund of Saudi Arabia (PIF) in a private transaction for SAR259.125 billion (SAR123.39 per share), which is equivalent to US$69.1 billion. What is being called the Mideast’s largest-ever deal has been under negotiation for a while, and came after Saudi Aramco withdrew earlier plans to do an initial public offering (GM Aug. 24, 2018).

Saudi Aramco may issue its first-ever international bonds as early as next week for about $10 billion to help fund the acquisition, according to Bloomberg, citing people familiar with the matter, laying open company financials for the first time since nationalization some four decades ago.

The remaining 30 percent of publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire those shares. After the news, according to Bloomberg the public shares recorded their largest intraday climb since December, moving to SAR 127.20, or up 2.4 percent, as of 10:03 a.m. on March 28.

SABIC has global operations in over 50 countries with 34,000 employees. In 2018, SABIC’s consolidated production volume across its various business units was 75 million mt, and it recorded net income of $5.7 billion, annual sales of $45 billion, and total assets of $85 billion.

“This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals,” said Saudi Aramco President and CEO Amin Nasser. “SABIC is a world-class company with an outstanding workforce and chemicals capabilities. As part of the Saudi Aramco family of companies, together we will create a stronger, more robust business to enhance competitiveness and help meet rising demand for energy and chemicals products needed by our customers around the world.”

Saudi Aramco said the acquisition is in line with its long-term strategy to drive growth through an enhanced downstream portfolio by increasing global participated refining capacity from 4.9 million to 8-10 million barrels per day by 2030, of which 2-3 million barrels per day will be converted into petrochemical products. This Downstream portfolio will consume significant quantities of Arabian crude oil.

Saudi Aramco and SABIC already have petrochemicals production capacity of 17 and 62 million mt/y, respectively.

“Expansion for Saudi Aramco into further downstream exposure offers protection in a lower oil demand outlook,” Wood Mackenzie Senior Vice President of Chemicals Steve Zinger told Bloomberg. He said the acquisition can allow wider collaboration and avoid competition, as the two have been overlapping in petrochemicals. SABIC was reported to have recently approached OCI NV, Amsterdam, about a possible acquisition of its methanol business (GM March 8, p. 1).

In addition to downstream chemicals and plastics, PIF will likely be looking at other international investments, according to Bloomberg, citing PIF’s investments in Tesla Inc., Uber Technologies Inc. and $45 billion commitment to SoftBank Group Corp.’s Vision Fund.

As for fertilizer, SABIC has been moving forward in putting all of its agri-nutrients companies under one holding company (GM Jan. 4, p. 23; Nov. 9, 2018), with Saudi Arabian Fertilizer Ltd. (SAFCO) signing a nonbinding Memorandum of Understanding (MOU) to acquire that company.

The holding company, named SABIC Agri-Nutrients Investments Co. Ltd., will initially be wholly-owned by SABIC, and includes its stakes in Ma’aden Phosphate Co. (30 percent), Ma’aden Wa’ad Al-Shamal Phosphate Co. (15 percent), Gulf Petrochemicals Industries Co. (33.33 percent), Al-Jubail Fertilizer Co. (Al-Bayroni) (50 percent), and National Chemical Fertilizer Co. (Ibn Al-Baytar) (50 percent). SABIC said in November the integration process was expected to be completed by the end of 2019.

Under the MOU, SABIC and SAFCO will seek to reach an agreement on the value of the new company. If a deal can be reached, SAFCO would make an offer to buy SABIC Agri-Nutrients Investments Co. in cash or shares or a combination of both, SAFCO said in November (GM Nov. 9, 2018).

SABIC owns a 42.99 percent interest in SAFCO.

SABIC currently lists its fertilizer capacities as urea 5 million mt/y, ammonia 3.4 million mt/y, DAP/MAP 1.5 million mt/y, and NPK/NPS/UCS 900,000 mt/y.

ArrMaz Reported on Market

Private equity investment firm Golden Gate Capital, San Francisco, is exploring the sale of ArrMaz Custom Chemicals, Mulberry, Fla., according to Bloomberg, citing people with knowledge of the matter. The deal could fetch about $580 million based on similar valuations in the industry, according to the sources.

Founded in 1967, ArrMaz, which Golden Gate purchased in 2013 (GM Jan. 14, 2013), is a specialty chemicals producer for the mining, fertilizer, phosphate, industrial ammonium nitrate, asphalt, and oil and gas industries. It serves customers globally from multiple locations across North and South America, Europe, Asia, Africa, and the Middle East.

ArrMaz chemicals are used to help process the breakdown of phosphate, and sources said Golden Gate is looking to cash in on the growing phosphate mining industry. When it bought the company, Golden Gate cited ArrMaz’s unique market leadership position, significant competitive advantages, and long-term growth potential. Golden Gate has since added other assets to the ArrMaz footprint, including the 2017 purchase of MaxxChem, an asphalt additive maker.

ArrMaz generates about $300 million in annual revenue and $60 million in annual EBITDA, the sources told Bloomberg. By comparison, Innospec Inc., Littleton, Colo., a competitor in mining chemicals, currently trades at 9.72 times next year’s EBITDA.

Golden Gate is working with Lazard Ltd. to seek buyers. Both declined to comment. ArrMaz did not have a representative immediately available to comment.

AN Truck Explosion Kills One in Arkansas, Damages Nearby Homes, Vehicles

A tanker truck carrying ammonium nitrate exploded in southern Arkansas on the morning of March 27, killing the driver and injuring three firefighters. The massive explosion, which was heard by residents living more than 20 miles away and registered as a seismic event at an Arkansas Geological Survey station some 12 miles from the blast, blew windows out of nearby homes and vehicles in the area and left a 15-foot deep crater in the road.

The explosion occurred at 7:30 a.m. on U.S. Highway 287 west of Camden, a town of about 12,000 in Ouachita County, near the Louisiana border. A statement from the Arkansas State Police confirmed the victim as Randall McDougal, 63, of El Dorado, Ark., who was employed by Blann Tractor Company of Hampton, Ark. Police said the truck was carrying ammonium nitrate from El Dorado to Texarkana, Ark.

The police statement said area fire department personnel were notified at about 6:40 a.m. that the truck’s brakes had overheated and ignited a tire, and the driver was attempting to extinguish the blaze. The first fire department personnel promptly began evacuating residents within a one-mile radius of the scene, and reportedly witnessed McDougal returning to the truck when it exploded.

Photos from the scene showed a massive orange mushroom cloud rising above the blast, a crater spanning the full width of the highway and more, and numerous blackened and denuded pine trees around the site. Officials closed nearby Highways 57 and 24 in addition to Highway 287, and the Ouachita Electric Cooperative confirmed that the explosion knocked out power to 295 customers in Ouachita and Nevada counties.

Local news reports said residents from as far away as El Dorado, Magnolia, Holly Springs, and Haynesville, La., reported hearing the explosion.

Industry sources said the truck was likely a pneumatic tanker carrying 20-25 tons of ammonium nitrate, but those details were not confirmed by investigators. By way of comparison, the deadly 2013 explosion at the West Fertilizer Co. facility in West, Texas, was triggered by 30 tons of ammonium nitrate, according to investigators with the U.S. Chemical Safety and Hazard Investigation Board (GM Jan. 9, 2016).

The Blann Tractor Co. had no comment on the blast, citing advice from legal counsel.

Mark Behrman, CEO of LSB Industries Inc., told Green Markets that the truck had loaded at the company’s El Dorado Chemical Company plant, which produces high density ammonium nitrate and ammonia for fertilizer, as well as a range of industrial and mining products. Behrman said LSB would have no additional comments until the investigation is complete.

McDougal’s remains were sent to the Arkansas State Crime Lab for positive identification. Camden Fire Chief Robert Medford and two other firefighters were treated for minor injuries and released from an area hospital. “This was a bigger explosion, a bigger explosive event than I have ever witnessed,” Medford told a FOX16 news reporter.

Responders at the scene included personnel from the Ouachita County Sheriff’s Office, the Camden Fire Department, the Stephens Volunteer Fire Department, the Arkansas Department of Emergency Management, and at least one ProMed Ambulance team.

A number of fire department vehicles sustained heavy damage from the blast, and first responders at the scene reported only small pieces remaining of the Blann Tractor truck and trailer. A Camden Fairview School District bus that was attempting to turn around at a roadblock was also damaged in the blast, but no students were on the bus at the time.

The Arkansas Department of Transportation confirmed on March 28 that work was underway to repair Highway 287, with plans to lay new asphalt in the afternoon. Officials estimated that the highway would reopen to traffic late on March 28.

Enviro Groups Sue Over Iowa Water Pollution; Corn Growers Call Suit a “Low Blow”

Two environmental groups, Iowa Citizens for Community Improvement and Food & Water Watch (FWW), on March 27 filed a lawsuit against the State of Iowa in the Iowa District Court for Polk County claiming the state has violated its obligation under the Public Trust Doctrine to protect the Raccoon River for the use and benefit of all Iowans. The plaintiffs said with well-documented water pollution and only voluntary agricultural pollution controls, the state is failing to uphold its duty.

“There is a well-known, statewide water crisis in Iowa, and the Raccoon River in Polk County has been particularly harmed by pollution from factory farms,” said FWW’s Emma Schmit. “The Raccoon River runs through one of the most intensely farmed areas of the United States, where runoff from animal manure and fertilizer poses a threat to tap water and recreational use of the river. Once again, the legislature has failed to take any action on water quality, so the citizens of Iowa have stood up to say enough is enough.”

The plaintiffs said the Raccoon River is the source of drinking water for some 500,000 Iowans, and that the Des Moines Water Works, the largest water utility in Iowa, has one of the most expensive nitrate removal systems in the world. In 2015, the utility sued three drainage districts over high levels of nitrogen going into the river, but the case was dismissed in 2017 (GM April 14, 2017), with a federal judge saying that the pollution was an issue for the legislature to address.

The plaintiffs noted that a bill to establish a moratorium on new and expanded factory farms died in the legislature on March 8, and that there are currently no bills to address the factory farm or water quality crises alive during this legislative session.

“At a time when farmers are struggling financially and also from historic flooding, this lawsuit is a low blow to farmers” said Iowa Corn Growers Association President Curt Mether, a farmer from Logan. “It will divert resources from implementing conservation practices and helping our farmers recover from the latest natural disaster.

“Iowa farmers are aware of the role we play in our state’s quality of life, and this includes the water we share,” he added. “By implementing Iowa’s nutrient reduction strategy, we embrace the best science and rely on years of experience to collaborate in results that better our water. Farmers will continue to work together to achieve the best long-term solutions for our soil and water while feeding the world.”

Fertilizer, Retail Facilities Detail Flood Impacts; NuStar NH3 Pipeline Returns to Service

Major flooding continued to impact farmland and livestock operations in parts of Nebraska, Iowa, South Dakota, and Missouri during the week. Some fertilizer and ag retail operations were also affected, but most industry sources reported only minimal impacts to buildings and equipment.

“2011 was bad, but this is way worse,” said Blaine Barry of Flatland Fertilizer Inc. in Lincoln, Neb. “The water was bluff-to-bluff last week in Nebraska City. All the river systems are in trouble, and there’s a lot of snow to melt yet.”

Dave Coppess of Heartland Co-op, West Des Moines, Iowa, said the company has experienced “record flooding” at its locations in Nebraska City, Neb., and Pacific Junction, Iowa.

“We are in the process of cleaning up Nebraska City as the water recedes, moving a lot of mud and muck, but the damage to product and facilities seems to be minimal,” he told Green Markets. “We’re still evaluating some equipment, etc. Our goal is to be operational by early next week, on April 3 or so.”

Coppess said the location at Pacific Junction is a different matter, however. “The levy breach has flooded the entire community and water has not receded with the river,” he said on March 28. “The authorities are limiting access to the area, so it’s difficult for us to assess the damage at this time. Drinking water and sewage may be a lingering issue for the community.”

Coppess said the Pacific Junction site is not a big facility for Heartland, and the company recently relocated its ammonia business at that site to a new location east of the flooded area.

“We sympathize with the families, farmers, and other businesses that have lost their homes, businesses, and livelihood to this devastating event,” Coppess said. “It’s still unknown if the bottom ground will be dry enough to re-condition and be ready to plant this spring. Only time will tell.”

Barry noted, as well, that planting on some of the flooded bottom ground will likely not happen this spring. “I think a lot of the low ground will not get planted. Some of the Missouri River bottom land will stay flooded for some time,” he said. “South of Omaha, where the Platte and Elkhorn Rivers come in, they bring in so much sand, and that was the problem in 2011. Farmers had to clear off a bunch of sand from the fields before they could seed.”

The Big Soo Terminal in Sioux City, Iowa, reported no flood impacts at mid-month. General Manager Kevin Knepper told Green Markets that the Missouri River crested at about 30 feet in Sioux City on March 16, well below the 35-foot level reached in 2011. Knepper said the terminal escaped major flooding in 2011 as well, but river levels that year were just seven inches from flooding the dock.

Knepper added, however, that the Big Sioux, James, and Vermillion Rivers all remain at flood stage, and those tributaries feed into the Missouri River above Sioux City. He said a lot of snowmelt is still expected in the Northern Plains in the coming weeks, so the flooding danger is far from over.

Koch Fertilizer reported at midweek that its facilities in Nebraska, Iowa, and Missouri have not been affected by the recent flooding, with all locations continuing normal operations. AgriServices of Brunswick, Mo., also confirmed on March 27 that its terminal on the Missouri River was fully operational, with no access issues or flooded roads impeding operations.

A source with Nutrien Ltd. reported no impacts to facilities due to flooding, but said “navigation remains extremely challenging.” CF Industries Holdings Inc. did not respond to requests for service updates. The company’s website, however, confirmed that all terminals were open as of March 28, except for locations at Cowden, Ill., and Terra Haute, Ind.

CF also leases a liquid terminal at Pacific Junction from Winfield United. Attempts to reach CF and Winfield United for comment on the status of that facility were unsuccessful.

“We, too, are waiting to learn about the extent of damage and operational expectations for the liquid facility that Winfield United owns and leases to CF,” said Coppess. “It has been an
important source of UAN and liquid mix for this geography.”

Railroads, pipeline service, and road access were slowly being restored as the flood waters recede. The 115-mile west leg of NuStar Energy LP’s ammonia pipeline returned to service at 1:00 p.m. on March 26 after being idled on March 14 due to flooding (GM March 22, p. 1), the company told Green Markets.

The BNSF Railway’s track outage map on March 28 showed that service had been restored from Sioux City south to Omaha, but remained offline from Omaha south to Kansas City, Mo; from Sioux City west into the O’Neill Subdivision; and from Lincoln north into the Bellwood Subdivision. Service was expected to be restored by the weekend from Lincoln southeast through St. Joseph to Kansas City, and in some areas south of Omaha. The map also showed service outages still in effect in areas south of St. Louis, and also between St. Louis and Galesburg, Ill.

Embargoes in response to track outages were in effect as of March 25 for BNSF and Canadian Pacific Railway service to Iowa locations at Davenport, Bettendorf, Pleasant Valley, Le Claire, Camanche, and Clinton. Embargoes remained in effect since March 21 for some types of freight service to Omaha and Burlington, Iowa, as well.

The Union Pacific Railroad was also making progress. As of March 25, sections of the UP line that remained out of service included the Lincoln Subdivision from Valley, Neb., to Lincoln, Neb.; the Falls City Subdivision from Council Bluffs, Iowa, to Kansas City; and the River Subdivision from Kansas City to Jefferson City, Mo., via Marshall, Mo.

On March 21, UP announced the reopening of two of its subdivisions that were damaged by flooding, including the Blair (Fremont, Neb., to Missouri Valley, Iowa, via Blair) and the Omaha (Missouri Valley, Iowa, to Fremont via Omaha).

“Where possible, Union Pacific will continue to reroute traffic around the affected areas,” the railroad said. “Manifest customers with rerouted shipments may experience an additional 72-96 hours of transit time.”

The U.S. Geological Service on March 25 reported that 38 percent of river gauges on the Missouri River were at some stage of flooding, along with 50 percent of Mississippi River gauges, and fully 79 percent of Big Sioux River gauges.

As of March 28, the National Weather Service office in Omaha reported that 40 of the 265 river gauges in its area of responsibility were still above flood stage, with major flooding reported on the James River near Scotland and Yankton, S.D.; on the Big Sioux River at Akron, Iowa, and above Hawarden, Iowa; on the West Fork Des Moines River at Estherville, Iowa; and on the Missouri River at Miami, Mo.

Moderate flooding continued on the Missouri River from Rulo, Neb., southeast to Glasgow, Mo., while minor flooding was reported on the Missouri from Plattsmouth south to Brownville, Neb.; on the Platte River near Agency, Sharps Station, and Platte City, Mo; on the Des Moines River at Fort Dodge and Des Moines, Iowa; the Little Sioux River from Milford, Iowa, south to Cherokee, Iowa; and at a handful of other points on the Vermillion, Big Blue, Grand, and Blackwater Rivers in South Dakota, Iowa, Missouri, and Kansas.

Danakali Ltd. – Management Brief

Junior sulfate of potash (SOP) producer Danakali Ltd., Subiaco, Western Australia, on March 25 announced the appointment of Niels Wage as its new CEO, effective immediately. He joined the company in June 2018 as Chief Commercial Officer (CCO).

Wage previously held a number of senior management roles at BHP, including Vice President Potash and Vice President Freight. At BHP, he was also responsible for marketing, sales, and supply chain for the Jansen potash project.

Former Danakali CEO Danny Goeman tendered his resignation from the position in June last year, following the acceptance of an offer from a Perth-based mining company (GM June 15, 2018), and left Danakali on Aug. 3, 2018.

 

Hocking International Laboratories – Management Brief

Hocking International Laboratories, San Marcos, Calif., reported on March 18 that it has hired Shana Hall-Derrick as a Formulation Chemist overseeing product development and testing in a new Mississippi lab. Derrick’s specialty is formulation of herbicides, fungicides, and insecticides, with a focus on crop-applied adjuvants, which Hocking said supports its aggressive growth in agricultural products.

Hall-Derrick previously worked for Adjuvants Unlimited, focusing on new product development, and also held positions at Genome Explorations and PMC Biogenix. She has a B.S.  in Geology and Environmental Biology from the University of North Alabama.

“Adding Shana to the Hocking team shows our commitment to specialty nutrition products for both Ag and T&O,” said Doug Hocking, CEO. “Combining her expertise with our new production facility in Pipestone, Minn., and major expansion at our Sylacauga, Ala., plant, we’re amplifying research and manufacturing capabilities to deliver more value to our customers.”

FS Partners Opens New Ontario Fertilizer Plant

FS Partners, a retail division of Growmark Inc. with headquarters in Guelph, Ont., celebrated the official grand opening of a new high-efficiency, large capacity fertilizer plant at its agronomy and grain marketing site in Ayr, Ont., on March 23.

The state-of-the-art, 36,000 sq. ft. facility has 15,000 mt of storage capacity and is equipped with eight bulk bins that allow for a variety of blending capabilities, mixing up to 2,000 mt of crop nutrients per day, more than doubling the old capacity of 800 mt/day. FS said it is the first plant in Ontario to utilize an HIM high-performance mixer, cutting production times significantly.

“We are very pleased with how the project took shape and was completed, as planned, on time for spring,” said Frank Barron, FS Partners Division Manager. “Construction began in October 2017 and involved expertise from more than a dozen skilled trades, nearly 200 outside workers, and our extraordinary team of employees to bring it to fruition.”

More than 300 local residents, FS Partners employees, directors, and industry leaders were on hand for the grand opening and facility tour. The new plant operates as a shared asset between Growmark and FS Partners, and has the ability to receive products by both truck and rail, thanks to a 20-car rail siding located on the property.

“We saw the need for Growmark to invest the $7.2 million into this facility to provide greater efficiencies in distribution for FS Partners’ locations and for other FS area cooperatives,” said Brent Ericson, Growmark Vice President of Member Business.

FS Partners offers agronomy, energy, and grain marketing products and services from 16 branch locations in southwestern and central Ontario.

“The FS Partners board sees this as an excellent investment for our farmer-owners, our customers, and for retailers in the province,” said Bert Perriman FS Partners Board President. “It provides increased capabilities in all aspects, from faster turn-around production times to greater flexibility in product offerings.”

TFI Joins Phytobiomes Research Alliance

The International Alliance for Phytobiomes Research (IAPR), an international, nonprofit consortium of industry, academic, and governmental partners created in 2016 and headquartered in St. Paul, Minn., announced on March 28 that The Fertilizer Institute (TFI) has joined the organization as a sponsoring partner.

The IAPR facilitates and coordinates international efforts toward expanding phytobiomes research to accelerate the sustainable production of food, feed, and fiber for food security. IAPR said the term “phytobiome” refers to a plant growing within a specific environment, or biome, and includes the plant itself and all micro- and macro-organisms living in, on, or around the plant – such as microbes, animals, insects, and other plants – as well as the environment, which includes soil, air, water, weather, and climate.

“The Fertilizer Institute brings another dimension to the Alliance and our efforts to move agricultural science towards a holistic, systems-based, phytobiomes approach,” said Kellye Eversole, IAPR Executive Director. “Their expertise and efforts aimed at helping growers manage nutrient applications more effectively and sustainably will help us advance knowledge of the critical interactions between nutrients, soil, crops/crop varieties, and microbes, thereby enabling sustainable and profitable crop production.”

Sally Flis, TFI Director of Agronomy, will represent TFI in the Alliance Coordinating Committee, which identifies research, resource, and technology gaps, establishes priorities, and develops strategic plans to achieve Alliance goals.

“Properly managed fertilizers support cropping systems that provide economic, social, and environmental benefits. On the other hand, poorly managed nutrient applications can decrease profitability and increase nutrient losses, potentially degrading water and air,” said Flis. “Understanding how fertilizers behave in the phytobiome is a component of making the right fertilizer source, rate, timing, and placement decisions in each field.”

 

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