Yara to expand Sluiskil urea capacity by 45 percent

Oslo-Yara International ASA said Oct. 19 that it plans to strengthen its production base by investing in a new urea unit at its Sluiskil plant in the Netherlands. The investment increases urea production by roughly 45 percent, to 3,500 mt/d from 2011, creating a world-scale facility at an investment cost of approximately EUR 300 million. Construction is planned to start in 2008. “Increased natural gas prices in so-called ‘stranded gas’ regions like the Middle East, are improving the relative competitiveness of European ammonia plants,” said Yara CFO and Head of Strategy Sven Ombudstvedt. “Efficient European ammonia plants now represent a more attractive case for upgrading investments. This investment takes advantage of urea upgrading margins on excess ammonia capacity in Sluiskil and improves our finished product portfolio. Moreover the replacement of existing capacity reduces maintenance costs and improves energy efficiency at the plant.” The new urea unit will be integrated into the existing facilities at Yara Sluiskil. Currently, approximately 70 percent of ammonia production onsite is consumed in the production of finished fertilizer products, with the balance transported to other Yara production sites or sold to third parties. With more ammonia upgraded to urea, liquid fertilizer, AdBlue, and other finished products onsite, Yara’s exposure to the international ammonia market will be reduced. Onsite integration will also further improve energy efficiency and reduce maintenance and operating costs. Yara Sluiskil produces ammonia, nitric acid, nitrates, urea, liquid fertilizer, liquefied CO2 for the food industry, and environmental products. The plant ranks among the largest and most efficient European fertilizer facilities, said Yara.