Dry Fertilizer Barge Rates
| 10/6/2023 | Last Week | |
| Memphis | 18.50-19.00 | 18.50-19.00 |
| St. Louis | 20.00 | 20.00 |
| Peoria | 27.00-28.50 | 27.00-28.50 |
| Cincinnati | 30.00 | 30.00 |
| St. Paul | 33.00 | 33.00 |
| Catoosa/Inola | 36.00 | 36.00 |
All Posts from October 6, 2023
LSB, Partners Announce Low-Carbon Ammonia Project
LSB Industries Inc., Tokyo-based INPEX Corp., Paris-based Air Liquide Group, and Vopak Moda Houston LLC announced on Oct. 3 that they have agreed to collaborate on the pre-FEED (Front End Engineering Design) study for the development of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.
If the plan proceeds, the project’s first phase is targeted to produce more than 1.1 million mt/y of low-carbon ammonia by the end of 2027, with options for future expansions.
“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” said Mark Behrman, LSB President and CEO. “As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction, and operation of the ammonia loop,” Behrman said.
“We are excited to be part of this consortium, comprised of best-in-class energy-related companies, and look forward to working with them as we make the vision of this world scale clean ammonia facility a reality,” Behrman added.
Other LSB low-carbon initiatives have been announced for the company’s El Dorado, Ark., and Pryor, Okla., facilities (GM April 29, 2022; May 27, 2022). In addition, LSB is partnering with Amogy Inc. to promote the adoption of low carbon ammonia as a marine fuel, initially for the US inland waterways transportation sector (GM May 26, p. 29).
LSB would collaborate with INPEX, Japan’s largest exploration and production company, in both producing and marketing the ammonia at the new Texas site. The majority of the product is expected to be used for power generation in Asia, with some volumes going to Europe and the US.
The companies said numerous parties have expressed interest and could also join as partners. INPEX, which has stakes in both hydrogen and ammonia production, will likely be the largest investor in the overall project across the entire value chain, from production to export.
The parties said they completed a feasibility study on the project earlier this year and the preferred facility’s location on the Houston Ship Channel, the second largest petrochemical corridor in the world, leverages existing infrastructure assets.
Vopak Moda has invested in storage and handling infrastructure for bulk liquid products and currently operates an ammonia terminal that includes storage tanks and a newly built dock with multiple deepwater berths. The company plans to build additional storage capacity as required to handle the facility’s production. The project also has access to utilities and is near multiple pipelines that could supply raw materials like natural gas and water.
Air Liquide and INPEX would collaborate on low-carbon hydrogen production, with Air Liquide supplying its AutoThermal Reforming (ATR) technology for production, along with its proprietary carbon capture technology.
The partners said this combination would capture at least 95% of direct CO2 emissions from hydrogen production, with at least 1.6 million mt/y CO2 captured and permanently sequestered from this project. Air Liquide would be responsible for onsite nitrogen and oxygen production, using its proprietary Air Separation Unit (ASU) technology.
CF-Koch JV Announces New Trinidad Gas Deal
Point Lisas Nitrogen Ltd. (PLNL), an ammonia producer co-owned by CF Industries Holdings Inc. and Koch Fertilizer LLC, reached a new natural gas sales agreement with the National Gas Co. (NGC) of Trinidad and Tobago, according to an Oct. 4 statement on NGC’s website.
“PLNL welcomes the timely execution of this Gas Sales Contract, which represents a new chapter in the life of the company,” said Fitzroy Harewood, PLNL President. “As a downstream operator with a long-standing presence on the Point Lisas Industrial Estate, this opportunity to continue operations is a testament to the hard work and dedicated efforts of PLNL’s employees over the years.”
“On behalf of PLNL, I extend thanks to the team at NGC for their professionalism and flexibility throughout these negotiations and we look forward to continuing this collaboration in the years ahead,” Harewood said.
“NGC is keenly aware of its responsibilities in the domestic energy landscape, both as gas supplier to the downstream sector and as the state entity charged with creating value for country from our natural gas resources,” said NGC President Mark Loquan.
“Achieving the right balance and ensuring we can satisfy the demands of all our stakeholders requires open discussion, flexibility, and a constant focus on the big picture,” Loquan continued. “I wish to thank the teams at PLNL and NGC for their equal dedication to the process and the achievement of a favorable outcome. We look forward to nurturing this relationship for a sustainable domestic energy sector future.”
Five Dead in Illinois Ammonia Accident
Five people were killed, including two children, when a tanker truck carrying anhydrous ammonia wrecked and ruptured near Teutopolis, Ill., some 200 miles south of Chicago, around 8:42 p.m. on Sept. 29. All are believed to have died from ammonia inhalation.
At least five others, including the driver of the tanker truck, were airlifted to hospitals. Others were taken by ambulance.
A large plume of ammonia was released and some 500 local residents were evacuated and not allowed to return to their homes until 8:00 p.m. on Sept. 30. Some of those that were evacuated or were away from home reported the deaths of pets and livestock.
The accident occurred on US Highway 40, which had to be closed between Effingham, Ill., and Montrose, Ill., until the crash scene could be cleaned up. The tanker was carrying 7,500 gallons, with an estimated 4,000 gallons leaking at the crash site. Responders were unable to immediately stop the leak but were successful the next day and the remaining ammonia was offloaded.
The crash scene was reported to be large, with multiple vehicles involved. Traffic was reported to be heavy on the road as the tanker truck and other vehicles were being rerouted onto the road due to another truck wreck on Interstate 70.
The Illinois State Police (ISP) Division of Criminal Investigation reported on Oct. 5 that it was able to identify the vehicle and individual believed to be involved in the accident, using information provided by the community, including surveillance video. ISP did not identify the individual and said no additional information was available at this time, but said the investigation continues.
ISP said the initial investigation indicated a dark colored vehicle was potentially involved in the incident as it attempted to pass the truck. The truck reportedly moved to the right as the vehicle attempted to pass, but then jackknifed and rolled over, hitting a utility trailer that was parked off the road. The utility trailer’s hitch reportedly puncturing the ammonia tank.
The dead included three of members of a local family – Kenneth Bryan, 34, of Teutopolis, and Walker Bryan, 10, and Rosie Bryan, 7, both of Beecher City. They were reportedly overcome by a cloud of ammonia while in front of Kenneth Bryan’s home. The two other victims were out-of- state residents – Vasile Cricovan, 31, of Twinsburg, Ohio, and Danny Smith, 67, of New Haven, Mo.
Nutrien Ltd. confirmed that the anhydrous ammonia originated from one of its plants and was on its way to one of the company’s retail locations.
“We were deeply saddened to learn that five people died as a result of the multi-vehicle collision and release of ammonia from a third-party ammonia transport operated by Prairieland Transport on Sept. 29, outside Teutopolis, Ill.,” a Nutrien spokesperson told Green Markets. “While no Nutrien employees or equipment were involved in the incident, the tanker was en route to deliver the ammonia to a Nutrien retail location in Warrensburg, Ill., from our Lima, Ohio Nitrogen facility.”
“We understand that there were also five additional people injured and hospitalized,” the Nutrien spokesperson added. “Our deepest sympathy goes out to the families and friends of those who died in the incident, those injured, and all those inconvenienced by the evacuations implemented by the local authorities.”
Nutrien shares closed on the New York Stock Exchange at $61.76 on Sept. 29 but had dropped by 7.4% to close at $57.21 on Oct. 3. However, shares were working their way back up on Oct. 4-5.
Canada, India Tensions Continue to Simmer
The Canada-India skirmish over the killing of a Sikh leader in Canada in June (GM Sept. 29, p. 1; Sept. 22, p. 1) continued to simmer this week, with India saying on Oct. 5 that it wants parity with Canada on diplomatic presence, according to a Bloomberg report. India wants Canada to cut its number of diplomats in India by 66%, or by 41 from the existing 62, according to the Financial Times. The countries are reported to still be in discussions on the issue.
“We have sought parity in diplomatic presence,” Arindam Bagchi, a spokesperson for India’s Ministry of External Affairs, told reporters in New Delhi. “Canadian diplomatic presence is very much higher. We would assume that there would be a reduction.”
The development follows comments on Oct. 3 from Canadian Foreign Minister Melanie Joly, who underlined the need for a strong diplomatic footprint in India during times of conflict. Joly said Canada is in “constant cooperation and dialogue with India” to address the issue.
Canadian Prime Minister Justin Trudeau this week reiterated that Canada hopes to maintain ties with India as the murder investigation develops. “We’re not looking to escalate,” he said. “We’re going to be doing the work that matters in continuing to have constructive relations with India during this extremely difficult time.”
Both countries expelled senior diplomats soon after Trudeau linked Indian agents with the assassination. India also suspended visa services for Canadians and issued an advisory warning its residents against traveling to Canada. Joly confirmed that Canada expelled an Indian diplomat who she identified as the Head of India’s Research and Analysis Wing (RAW), India’s main spy agency, in the country.
The diplomatic spat has put the US in an awkward position. Washington spent years courting Indian Prime Minister Narendra Modi as part of an Indo-Pacific strategy to halt China’s economic and military expansion. But the US also shares close ties with Canada, a Group of Seven country and a member of the Five Eyes (US, Canada, UK, Australia, and New Zealand) intelligence-sharing alliance.
The US is also part of the “Quad” intelligence-sharing arrangement that includes India, Japan, and Australia. The US has separate and overlapping agreements with other Asian countries, including South Korea, the Philippines, and Vietnam.
The Biden administration has deepened intelligence cooperation in Asia as it looks to counter China’s spying apparatus and cyber-attacks. Late last year, India was able to repel a Chinese military incursion in the Himalayas thanks to strengthened intelligence-sharing with the US military, according to the US News & World Report.
“We take these allegations very seriously, and we continue to not just work closely with our Canadian partners, but have, as I said, publicly and privately urged the Indian government to cooperate with Canada,” US State Department Spokesperson Vedant Patel told reporters on Oct 3.
Agrimin Pulls Out of Deal for SOP Producer Kalium Lakes
Australian sulfate of potash (SOP) project developer Agrimin Ltd. has pulled out of the share sale agreement reached last month for Kalium Lakes Ltd.’s assets, which included the Beyondie SOP project in Western Australia (GM Sept. 22, p. 29).
“Agrimin on Oct. 3 gave notice of termination of the Share sale Agreement due to non-satisfaction of a condition precedent, and thereby terminating the contract in accordance with its terms,” said restructuring firm McGrathNicol, Kalium Lakes’ receiver and administrator, in an Oct. 4 ASX announcement.
A key condition, among several, was a capital raise by Agrimin to fund the transaction. Following the notice of termination from Agrimin, McGrathNicol said the receivers are now pursuing a number of alternatives for Kalium Lakes.
At the time of the announcement of the share sales agreement, McGrathNicol noted that Agrimin was intending to initially transition the Beyondie project, located some 160 kilometers southeast of Newman in Western Australia, to a period of “care and maintenance” in order to undertake an assessment of the ongoing requirements of the project.
The Nedlands-based SOP developer’s plan then was to target a restart of the brine field and pond operations in mid-2024, with the intention of a plant restart in the first half of 2025 and subsequent expansion.
Kalium collapsed into receivership in early August (GM Aug. 18, p. 1) after it failed to find further financial support for the continued development of Beyondie. The project produced its first batch of SOP in October 2021, making Kalium Australia’s first SOP producer (GM Oct. 8, 2021).
Since then, the company had been producing SOP in small batches. As recently as this past June, Kalium was targeting an SOP production rate of 55,000 mt/y in FY2024 (GM June 16, p. 29).
Grupa Azoty Reports 2Q/1H Results
Polish fertilizers and chemicals group Grupa Azoty SA reported final financial results for the second quarter and first half of 2023 in line with preliminary estimates released last month (GM Sept. 22, p. 25).
The group posted a Pln543 million (approximately $123 million at current exchange rates) net loss for the second quarter versus a year-ago net profit of Pln799.6 million. EBITDA was a negative Pln608 million against a positive Pln.1.24 billion in last year’s second quarter, while revenue fell 46% year-over year, to Pln3.49 billion from Pln6.41 billion.
Azoty cited low demand for its products in areas of key importance, primarily blaming the influx of products into the European market from “Eastern and Asian sources, produced using lower-cost raw materials and without the burden of expenses associated with the European climate policy.”
Azoty reported a 24% decline in total fertilizer sales volumes in the second quarter. The company’s second-quarter loss would have been even greater had it not been partially offset by a Pln289 million contribution from the sale of CO2 emission allowances purchased on the market in the previous reporting periods.
For the six months to June 30, 2023, as per preliminary estimates, Azoty reported an EBITDA loss of Pln1.009 billion and consolidated revenue of Pln7.39 billion.
Azoty reported “a pronounced uptick” in third-quarter demand in its largest business segment, Agro/Fertilizers, however. It said group companies produced an estimated 251,000 mt of nitrogen fertilizers in August, a 79% increase from 140,000 mt in May.
Novaphos – Management Brief
Junior phosphate technology company Novaphos, Fort Meade, Fla., announced on Oct. 4 that Evgeny Fedoseev has been named as Chief Operating Officer. In this role, Fedoseev will lead the commercialization of the company’s proprietary technological advances for the production of sustainable phosphoric acid. Fedoseev will report to Novaphos CEO Timothy Cotton.
Fedoseev previously served as Chief Operating Officer for the fertilizer division at EuroChem Group and has more than 20 years of experience in the chemical industry, Novaphos said. He and his family recently finalized a two-year journey to immigrate from Russia, which began after the 2022 Russian invasion of Ukraine. He holds a Master of Science, a Ph.D. in Chemical Engineering, and an EMBA degree.
“Over the last ten years, Novaphos has invested in and developed a new, modern, low-waste, low-cost process to produce high-quality phosphoric acid,” Cotton said. “Evgeny’s years of institutional experience and knowledge will be crucial to Novaphos as we scale our unique systems and processing to serve a variety of crucial phosphate-specific industries. His decision to leave Russia is truly inspiring, and we are thrilled he and his family were willing to move to Florida to lead our operations.”
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All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
For additional details visit our Terms of Use.