Haifa—Based on a decision made March 1 by Israel’s Environmental Protection Minister Gilad Erdan and Industry and Trade Minister Shalom Simhon, the Haifa Chemicals ammonia storage facility will be moved. The directors general of the two ministries will decide on an alternative location in the coming months, apparently in the Negev region in southern Israel. Haifa Chemicals has a plant in Mishor Rotem. No timetable for closing the existing facility or opening a new one was announced. “The two ministries will find an acceptable solution that meets the industrial needs of the local industry on the one hand but also takes into account environmental and security needs of the country,” said Simhon. Ammonia is currently imported via the port of Haifa for the use of Haifa Chemicals. A team of experts recommended that the new facility produce the ammonia locally using abundant natural gas that has been discovered off Israel’s Mediterranean coast in recent years. Late last year Ratio Oil Exploration said it was considering building an ammonia plant in the northern Negev region to utilize natural gas from the Leviathan offshore field, which was discovered in December 2010 and has estimated reserves of 16 trillion cubic feet. The plant, with a cost estimate of $500 million, would be able to meet all domestic needs and export as well. The current facility, which stores 12,000 metric tons, has met with strong opposition from environmental groups and the Haifa Municipality due to its location in a metropolitan area. A commission appointed following the 2006 war in Lebanon recommended improved protection of the facility and the banning of the entry of vessels transporting ammonia into Haifa port during war time. In 2010 a team of experts from government ministries and private consulting firms studied various alternatives and found that the facility was well protected by international standards, but was located closer to population centers than is customary. The team recommended that an ammonia production plant be set up to supply the needs of the local fertilizer and other industries. Officials at the Environmental Protection and Industry and Trade Ministries said that the determining factor was the fear of missile attacks in the Haifa region, and that was the main reason for the decision to shut the facility down and find an alternative location.
Traverse City, Mich.—A Michigan man who had claimed that he had more than 4,000 pounds of ammonium nitrate and fuel oil in his possession for use in his construction, sand, and gravel and rock quarry business has opted for a guilty plea and faces up to 10 years in prison. John Francis Lechner, 64, reached a deal last month with prosecutors in U.S. District Court in Marquette, according to Assistant U.S. Attorney Maarten Vermaat. Vermaat told Green Markets that Lechner, who faced a multi-count indictment, pleaded guilty to possession of explosives while under indictment and probably will be sentenced in May or June. Lechner was arrested in September after an informant told Chippewa County sheriff’s officials that Lechner had requested help moving a large quantity of ammonium nitrate and fuel oil. Authorities did not accuse Lechner of plotting to detonate the mixture, but said he violated a law prohibiting anyone under indictment from having explosives. He had been charged a month earlier with several unrelated offenses, mostly stemming from his pending divorce, his attorney said. “He had no intention of using them for any nefarious purposes,” Lechner’s lawyer, Charles Malette, told the local press. “He had no intention of hurting anybody, destroying anything. He would have used them eventually for business.” Lechner, who reportedly has 83 fifty-pound bags plus 2,000 feet of detonating cord, had been scheduled for trial March 5.
Davis, Calif., & Clewiston, Fla.—Agriculture technology developer Arcadia Biosciences Inc. and the U.S. Sugar Corp. have signed an agreement to develop nitrogen use efficient (NUE) and water efficient (WE) sugarcane. Under the terms of the agreement, U.S. Sugar – one of the nation’s largest sugarcane and refined cane sugar producers, with 8 percent of all U.S. production – receives exclusive rights to the use of Arcadia’s NUE and WE technologies. According to Arcadia, the technology enables crops to maintain high yields while requiring significantly reduced levels of nitrogen. A fairly water-intensive crop, sugarcane will also benefit from WE technology, which protects yields and reduces water resource requirements. Projections are that with U.S. Sugar’s integrated breeding, production, and processing, the result could be a high-yielding sugarcane that could require about half the amount of nitrogen as conventional sugarcane. Efficient use of nitrogen will also significantly contribute to higher yields whereas at present in some areas sugarcane can be among the most nitrogen-intensive crops grown.
Dallas, Tex.—DyneGroup Inc., a Dallas-based energy technology products and services company, is joining with NH3 Canada, a Canadian-based advanced technology group, to form NH3 United to produce turnkey systems designed to deliver cost effective production anhydrous ammonia for use as fertilizer and in alternative fuels. The joint venture also will focus on electrical power from renewable sources such as wind, solar, and tidal. “We’ve been working at this since 2008 and have studied every aspect of NH3 production knowing that only the most market-disruptive process would eventually succeed. Now, with this new venture, we have it!” said John Bickel, President/CEO of DyneGroup. “The two groups are completely in sync and very much look forward to working together.” “We sincerely believe that we can make a difference,” says NH3 Canada CEO Allison Leil Jr. “Our distinctly Canadian technology has proven to be world class, and now we have the international partners to make that dream come true.”
Toronto—Chemtrade Logistics Income Fund reported net earnings of C$60.3 million ($1.48 per unit) on revenues of $880.6 million for the year ending Dec. 31, 2011, up from 2010’s $28.1 million ($.92 per share) on revenues of $558.1 million. EBITDA more than doubled, to $144.8 million from 2010’s $71.3 million. Fourth-quarter earnings were off at $3.6 million ($.09 per unit) on sales of $247.2 million, while EBITDA was up at $32.6 million. This compares to the year-ago $7.9 million, $151.3 million, and $14.1 million, respectively. The fourth-quarter revenue increase was due to higher sulfuric acid and sulfur prices, and higher volumes of sulfuric acid versus the year-ago levels. The results of the quarter and year include the contribution of Marsulex Inc., which was acquired June 24, 2011.
Toronto—Sherritt International Corp. reported a 29 percent increase in fertilizer revenues for the year ending Dec. 31, 2011, and a 16 percent drop in volumes. Sherritt attributed the revenue uptick to higher fertilizer prices. Revenues were C$82.5 million versus 2010’s $63.8 million, while volumes dropped to 165,208 mt from 196,090 mt. Cost of sales moved up 10 percent to $59.5 million from 2010’s $54.2 million, indicating an increased operating profit in 2011. 2011 sulfur and sulfuric acid prices were US$238/mt and US$190/mt, up from 2010’s $141.80/mt and $135.97/mt, respectively. Potash royalties for 2011 were up 48 percent to $18.9 million from 2010’s $12.8 million, reflecting stronger prices and production. However, in the fourth quarter they fell 15 percent, or $700,000, reflecting lower prices and production volumes. Fourth-quarter fertilizer volumes were up at 61,808 mt from the year-ago 58,332 mt. Sulfur and sulfuric acid prices were up at US$252.11/mt and $196.65/mt, compared to the year-ago $146.82/mt and $144.38/mt, respectively. Company-wide, Sherritt reported net earnings were C$197.3 million ($.67 per diluted share) on sales of $1.98 billion for 2011, compared to 2010’s $144.8 million ($.49 per share) and sales of $1.67 billion. The fourth quarter saw a drop in net earnings, to $28.1 million ($.09 per share) on sales of $536.8 million from the year-ago $42.7 million ($.14 per share) and sales of $485.2 million.
Quebec City—La Coop fédérée reported record earnings for the year ending Oct. 29, 2011, posting earnings before patronage dividends and income tax of C$79 million on sales of $4.55 billion, up 119 percent from the prior year $36.1 million on sales of $3.95 billion. Dividends to members rose 217 percent in 2011, to $36.5 million from the prior year $11.5 million. La Coop noted recent acquisitions in the agricultural inputs, grain marketing, and propane storage businesses. These contributed to the company-wide 15 percent increase in sales. Among them was La Coop’s 2011 acquisition of Agrico Canada Ltd./Lte., which closed Aug. 31, 2011 (GM Sept. 12, 2011).
Sittard, The Netherlands—Stamicarbon, the Licensing and IP Center of Maire Tecnimont S.p.A., has signed License and Process Design and Services agreements with China Chengda Engineering Co. (CHENGDA) and China National Plant Import & Export Corp. (COMPLANT) for a urea melt and urea granulation plant for the Shahjalal Fertilizer Project (SFP) in Bangladesh. The project has been planned for more than 10 years, but only recently the Bangladesh government decided to engage in the project with the support of the Chinese government. The plant will be operated by BCIC as a representative from the Bangladeshi government, but will mainly be financed by the Chinese government. It will be located adjacent to the existing Natural Gas Fertilizer Factory Ltd. (NGFF) at Fenchuganj, Sylhet, Bangladesh. The urea plant synthesis and granulation will have a capacity of 1760 mt/d. The urea plant will use Stamicarbon’s Urea2000Plus™ Technology, while the granulation plant will use Stamicarbon’s Fluid Bed Granulation technology. The start-up is planned in 2015. Stamicarbon will deliver the Process Design Package, the training, (pre)-commissioning, and start-up services. CHENGDA is responsible for the basic and detailed engineering, plus procurement. COMPLANT is responsible for the construction and commissioning, although partly executed by CHENGDA. This will be the third urea plant in Bangladesh using Stamicarbon’s technologies. Earlier plants were built for Karnaphuli Fertilizers (KAFCO) and Ashunganj Fertilizer & Chemical Co.
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