All Posts from February 3, 2023

Canada Invests C$100 M in BHP Project

Australia, Featured, News, Potash, Saskatchewan

Canada’s Minister of Innovation, Science, and Industry François-Philippe Champagne on Jan. 30 announced an investment of $100 million through the Strategic Innovation Fund to support BHP’s C$7.5 billion project to develop its world-leading low-emissions potash mine. The mine, located in Jansen, Sask., is expected to generate the lowest direct emissions of any potash mine in the world.

The Ministry said the mine will ensure that Canada remains a global leader in both potash production and sustainable mining. In addition to critical environmental benefits, it said it would provide long-term benefits for the people of Saskatchewan by creating and maintaining 600 highly-skilled jobs and over 100 co-op terms for students, supporting Indigenous communities through employment and economic opportunities, and cementing Canada’s leadership position in potash production. BHP has signed opportunities agreements with six First Nations.

“This investment shows that our government is committed to the hard-working people of Saskatchewan as well as to Canada’s mining and agricultural sectors,” said Minister Champagne. “Potash is a critical and strategic resource in the global agricultural industry, and we are pleased to partner with BHP on this project to bring strong economic benefits to Saskatchewan. This project will lead to the creation of hundreds of well-paying jobs for Canadians while also encouraging green initiatives in the mining industry.”

“The demand for potash will continue to grow due to a need to increase crop yields to feed a growing population,” said Ragnar Udd, President Minerals Americas, BHP. “Canada has some of the best potash deposits in the world, along with a great skill base and strength in resource development. We know that being successful is not just about what you mine, but also about how you mine, and we take this responsibility seriously.

“Jansen Stage 1 is setting a new standard for potash – not just for Canada, but around the globe. BHP is honored to partner with the government, Indigenous peoples, and the people of Saskatchewan to create a mine that will use the latest technology to deliver a productive, efficient, and sustainable operation that will bring widespread benefits to the region, the people of Saskatchewan, and BHP shareholders for decades to come,” he added.

BHP anticipates the mine to be operational by 2026, with an initial production capacity of 4.3-4.5 million mt/y, increasing Canada’s production by nearly 22% and making it one of the top producers in the world. Jansen has the potential for the addition of three subsequent expansion phases to take the mine to an envisioned eventual production capacity of between 16-17 million mt/y. BHP already has accelerated the Jansen Stage 2 study, which could add another 4 million mt/y (GM Oct. 21, 2022).

Fertiberia Joins Barents Blue Ammonia Project; Equinor and Vår Energi Exit

Blue Ammonia, News, News Briefs, Norway, Spain

Horisont Energi, Sandnes, Norway, on Feb. 1 announced a cooperation agreement with Spanish-based fertilizer producer Fertiberia, Madrid, to join the Barents Blue ammonia project (GM Sept. 17, 2021) located in Finnmark, in northern Norway.

The parties said Barents Blue will produce 1 million mt/y of blue ammonia and it will be the most energy efficient blue ammonia plant in the world, with a best-in-class carbon footprint and well aligned with the EU taxonomy.

“We are proud to announce the cooperation agreement with Fertiberia providing significant experience and competence in developing green ammonia projects on [an] industrial scale,” said Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.

“Fertiberia and Horisont Energi share the ambition of accelerating the transition to carbon neutrality through pioneering projects,” he added. “Equinor and Vår Energi have been instrumental in maturing the project in the development phase ending Jan. 31. We look forward to work with Fertiberia to realize the project, and hence contribute to the decarbonization of European industry and transportation.”

Horisont Energi and Fertiberia aim to conclude a full partnership agreement by April 1, 2023. Equinor and Vår Energi are discontinuing their participating interests in the project. However, the partnership change will take effect as of Jan. 31, and Fertiberia and Horisont Energi will hold 50% and 50%, respectively.

“Our integration in this project is highly synergetic: we bring our experience as a European leader in sustainable crop nutrition to Barents Blue, with more than five decades of cumulated knowhow in the design, maintenance and operation of ammonia plants and with valuable expertise in the management of ammonia supply chains,” said Javier Goñi, CEO of Grupo Fertiberia.

“Fertiberia was the first large company in the crop nutrition sector to manufacture CO2-free ammonia and crop nutrition solutions on an industrial scale in Europe. Being part of the Barents Blue project is a new opportunity for Fertiberia to accelerate our transformation and growth process in the production of clean ammonia, extend its uses to new areas such as transport and energy and become the first company in our sector to achieve carbon neutrality by 2035,” Goñi continued.

Barents Blue’s 3,000 mt/d blue ammonia project will use natural gas from the Barents Sea. Carbon will be captured and transported by ship to the Polaris reservoir for storage, with an estimated capacity in excess of 100 million mt below the seabed offshore Finnmark. Horizont said the amount is twice Norway’s annual greenhouse gas emissions. The carbon capture rate is expected to exceed 99%.

The Barents Blue project is supported by a grant of NOK 482 million under the EU IPCEI hydrogen program, which is not affected by the changes in the partner consortium. Equinor remains positive toward explore gas supply solutions to the Barents Blue project from Melkøya following the changes in the partner consortium. Horisont Energi will invite new partners into the Polaris CO2 storage license, including a qualified operator. A new license group will bring the project forward to a submission of plan for development.

Omnia, PNE Eye Green Ammonia for South Africa; New Solar Plant Launched

Germany, Green Ammonia, News, News Briefs, South Africa

South Africa’s Omnia Group Pty Ltd., Johannesburg, and WKN Windcurrent SA Pty, Cape Town, a unit of Germany’s PNE AG, Cuxhaven, on Feb. 1 announced they have signed a Memorandum of Understanding (MOU) to evaluate the onsite production of green hydrogen and ammonia in South Africa.

The objective is to produce competitively priced green ammonia in the range of up to 100,000 mt/y, which would result in a saving of 180,000 mt/y per annum of CO2 emissions. This production will be powered by renewable energy from hybrid sources. The PNE subsidiary is to develop the necessary equipment to combine energy generation from wind and solar with the production of the ammonia.

“As a diversified chemicals group that supplies chemicals and specialized solutions for the agriculture and mining industries, we are continually looking for ways to add value to our customers throughout our supply chain,” said Seelan Gobalsamy, Omnia CEO. “Being innovative and using green technology is at the heart of our approach. The fact is that onsite production of green ammonia will significantly reduce our CO2 emissions, embed sustainability into our products, and support the country’s green energy journey.”

In the meantime, Omnia announced on Jan. 30 that it has launched Phase 1 of its 5-Megawatt (MW) Sasolburg Solar Plant. At the same time, the company broke ground on Phase 2. Both phases of the solar project aim to augment the electricity supply at the Sasolburg plant and reduce the group’s dependency on coal-fired power sources and the national grid.

Omnia expects to generate close to 10 500 MWh a year from phase 1, saving at least R12 million per annum in energy costs. Together with Omnia’s ability to produce electricity from excess process steam from their nitric acid plants (co-generation), this will supplement between 25%-35% of the group’s electricity requirements at the Sasolburg operations.

Omnia said the management, procurement, and engineering of both Phase 1 and 2 projects have been carried out in-house. Some 90 externally contracted staff managed the installation process over a seven-month period for Phase 1 development, with a similar outlook expected for Phase 2.

Bion Environmental Technologies Inc. – Management Brief

Management Briefs, Specialty

Bion Environmental Technologies Inc., a developer of advanced livestock waste treatment technology and sustainable beef, announced on Jan. 30 that Bill Rupp will join Bion’s Board of Directors, effective Feb. 15.

The company said he brings 37 years of experience, including 18 years in senior leadership roles with Cargill and JBS, two of the world’s largest meat packers. Bion said Rupp will work directly with Bion CEO Bill O’Neill to build a team and strategy to commercialize Bion’s technology and product line.

Millennial Potash Corp. – Management Brief

Africa, Management Briefs, Potash, Vancouver

Millennial Potash Corp. (MLP), Vancouver, (formerly Black Mountain Gold USA Corp.) (GM Jan. 27, p. 26) on Jan. 31announced that it has engaged Jason Wilkinson as its new CEO to lead the company’s efforts at its newly acquired Banio Potash Project in Gabon, effective Feb. 1.

Current CEO Graham Harris will remain with MLP as Director and Senior Vice President-Capital Markets. Wilkinson has a M.Sc. in Mineral Exploration from the Royal School of Mines and over 25 years in mining and exploration.

“We are very pleased to have Jason Wilkinson join MLP as we focus on the exploration and development of our new potash project in Gabon,” said MLP Director Farhad Abasov. “Jason has been in the potash business for almost 15 years, most recently with South Harz Potash in their potash projects in Germany.

“From 2009-2015 Jason was the Project Manager and Chief Operating Officer (COO) of Allana Potash’s subsidiary in Ethiopia, guiding their project in the Danakhil Depression from exploration to completion of a Feasibility Study, pilot solution mining test work, and then acquisition by Israel Chemicals Ltd,” Abasov continued.

“Jason has done a superb job in all the positions he has held, and we are very happy to have [him] lead our potash operations at Millennial. With his track record of success in multiple jurisdictions and under difficult conditions, Jason will be instrumental in expediting Millennial’s development program in the next few months,” he added.

MLP said the engagement of Wilkinson marks the initiation of MLP’s pivot to the potash space and the establishment of a seasoned potash development team. Initially, Wilkinson will spend significant time at the project building the company’s local team to expedite the upcoming drilling program. The company said additional appointments to augment the corporate team with experienced potash professionals will be undertaken over the coming months.

In other news, MLP has entered into a one-year communications agreement with SRC Swiss Resource Capital AG, Herisau, Switzerland, to provide investor relations services.

Baker Hughes, Fortescue Collaborate on Green Hydrogen, Ammonia, Geothermal

Australia, Green Ammonia, Green Hydrogen, Houston, TX, News, News Briefs

Energy technology provider Baker Hughes, Houston, on Jan. 30 announced a Memorandum of Understanding (MOU) with Fortescue Future Industries (FFI), Perth, Australia, to jointly explore potential opportunities for the scale up and adoption of novel technology solutions for green hydrogen, green ammonia, and geothermal projects.

“FFI and Baker Hughes share ambitions for transforming and accelerating the energy transition,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes. “Our portfolio of technologies can help place both companies at the forefront of tackling climate change with practical and implementable solutions. We are excited to support FFI in its ambitions for a more sustainable future.”

“There is enormous demand for green hydrogen and green energy, and engineering solutions such as those pioneered by Baker Hughes are vital to increasing supply,” said Mark Hutchinson, FFI CEO. “We look forward to working with Baker Hughes on a variety of projects that will help to enable industries and the world to move beyond fossil fuels.”

They plan to leverage Baker Hughes’ technology related to liquefaction and compression, turboexpanders, and hydrogen-fueled turbines, as well as geothermal subsurface analysis, geothermal well services, emissions measurement, monitoring and carbon reinjection, digital solutions for asset performance management, and process optimization.

The companies aspire to bring early-stage technologies to commercial scale faster than what would otherwise be possible. They said these technologies will potentially benefit the reduction of greenhouse gas emissions in both energy production and hard-to-abate industrial sectors, including mining, steel, and cement.

Sumitomo, Colbún Study Chilean Green NH3

Chile, Green Ammonia, Green Hydrogen, Japan, News, News Briefs

Japan’s Sumitomo Corp. Group, Osaka, and the energy generation and solutions company Colbún, Santiago, on Jan. 30 announced the signing of a Memorandum of Understanding to form an alliance to study the feasibility of developing green hydrogen projects to produce green ammonia in the regions of Antofagasta and Magallanes.

In Antofagasta, for the production of green hydrogen, the parties will evaluate the feasibility of providing part of the renewable energy supply from Colbún’s Inti Pacha photovoltaic solar project (486 MW, María Elena commune), which has already received environmental approval. Inti Pacha, together with other photovoltaic initiatives by Colbún, would supply the energy for the project.

As for the export of green ammonia, the parties will look at the feasibility of using the logistics and port facilities of Interacid, Sumitomo’s port subsidiary located in Mejillones that currently is mainly dedicated to the import of sulfuric acid and fuels for mining.

In Magallanes, the agreement points to a 1 million mt/y green ammonia project and includes feasibility studies for port facilities, renewable energy generation, and the development of infrastructure to produce hydrogen and other products.

“We are honored to be able to jointly develop these large-scale green ammonia projects with Sumitomo,” said José Ignacio Escobar, Colbún CEO. “It is a tremendously important step, which will allow us to consolidate our growth strategy based on new technologies – among which green hydrogen is located, and its different forms of conversion – and in turn advance in transforming our country into a power of green hydrogen and its derivatives both for Chile and for the world.”

“Colbún is a company with a lot of experience in the development of green energy in Chile and has an important know-how in how to develop projects, even in extreme areas,” said Taizo Hayakawa, President, Sumitomo Corp. Chile. “Together with Colbún we can develop very competitive and feasible projects to supply green ammonia to Chile, Japan, and the whole world.”

“Our green hydrogen strategy has two focuses,” added Juan Pablo Fiedler, who heads up Colbún’s Green Hydrogen Management segment. “One, linked to the domestic market, where we see that it can be a relevant option for the decarbonization of our customers, or potential customers, in Chile or Peru. And the second focus aims to contribute to Chile positioning itself as a relevant player in this industry worldwide.”

Colbún hasnearly 1,000 workers and an installed capacity of close to 4,000 MW through 27 generation plants, with operations in Chile and Peru.

ICL Moves on AgriFood Front

Austria, Israel, News, News Briefs

ICL announced that its AgriFood innovation and investment platform, ICL Planet Startup Hub, has invested €2.75 million in Arkeon GmbH, Vienna.

The investment will support Arkeon’s sustainable one-step fermentation bioprocess, which creates customizable protein ingredients by capturing the greenhouse gas carbon dioxide and converting it into the 20 proteinogenic amino acids necessary for human nutrition. The resulting alternative proteins are carbon negative and clean-label functional ingredients.

Bayer, Kimitec Partner on Biologicals

Germany, News, News Briefs, Spain, Specialty

Bayer, Monheim, Germany, and Kimitec, Almeria, Spain, on Feb. 2 announced a new strategic partnership focused on accelerating the development and commercialization of biological crop protection solutions and biostimulants.

Both companies will become key partners to advance and establish biological solutions derived from natural sources: crop protection products that address pests, diseases, and weeds, as well as biostimulants to promote plant growth.

Kimitec operates the MAAVi Innovation Center, Europe’s largest biotechnological innovation hub, with 15 years of experience in the research and discovery of natural molecules and compounds for agriculture and food sectors.

By leveraging Bayer’s product development expertise with Kimitec’s discovery capabilities, the parties said biological product development will be accelerated to build integrated crop management solutions that can scale and develop through Bayer’s global infrastructure backbone. This includes field testing, product support, and commercialization.

Supermarket Chain Rolls-Out Alternative Ferts

News, News Briefs, Specialty, United Kingdom

UK supermarket chain Tesco on Jan. 27 announced that it is partnering with five of its largest field vegetable suppliers to launch the UK’s largest ever commercial roll-out of low-carbon fertilizer, which it said will boost UK’s food security while also reducing greenhouse gas emissions in its supply chain. It expects the roll-out to reduce GHG emissions by up to 20% in the first year alone, at no extra cost to farmers.

Tesco said eight promising fertilizer alternatives will be used across 1,300 hectares in the 2023 growing season, with plans to scale up to a minimum of 4,000 hectares in 2024 across Tesco’s field vegetable suppliers. Tesco said the first year of the roll-out should result in up to 70,000 mt of fresh produce and will include lettuces, carrots, onions, brassicas, and potatoes. The 2024 tonnage is expected to grow to 200,000 mt.

Tesco also plans to introduce low carbon alternatives to other produce areas, including wheat and barley, as well as grasslands in the beef, dairy, and lamb supply chains.

Six of the eight fertilizer producers manufacture their product in the UK, from material including food waste, chicken litter, fire extinguisher waste, and algae. Tesco said the UK currently imports around 60% of the fertilizer it needs, while UK production has recently been hit by the closure of CF Industries Holdings Inc.’s Ince nitrogen plant near Chester (GM June 10, 2022). Tesco said that closure represented 30% of the UK’s fertilizer capacity.

The fertilizers being used in the trial are Bio-F Solutions, algae-based products; CCm, food waste and AD digestate; JSE Systems, chicken litter; Phos Cycle, fire extinguisher waste; Poly 4, mined material; R-Leaf, chemical composite; Veolia, food waste and AD digestate; and Yara Crop Nutrition, renewables.

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