Titanium dioxide (TiO2)

SINGAPORE (ICIS)–Denmark's AP Moller Holding, the parent company of shipping company Maersk, plans to invest €1.5 billion to build a “fossil-free” plastics production plant in Antwerp, Belgium, via a new venture called Vioneo. “The Antwerp plant will benefit from the region’s expertise in the chemicals industry, strong export facilities and access to renewable energy,” AP Moller said in a statement on 30 September. The Vioneo plant is expected to use green methanol as feedstock to produce polypropylene (PP) and polyethylene (PE), with commercial operations slated to begin in 2028, the investment company said. “Fully operational, the plant will be able to produce … 300,000 tonnes of fossil-free plastics annually, corresponding to a reduction of 1.5 million tons of CO2 [carbon dioxide] emissions,” it said. The plant will be located within the Antwerp energy park of Dutch logistics firm Vopak, with support from Vopak Belgium and the Port of Antwerp-Bruges. Project plans will take place in phases, with front-end engineering design (FEED) to begin in Q4 2024, and with the final investment decision (FID) expected in 2025. In a separate statement, the Port of Antwerp-Bruges said that the project is expected to generate "significant job opportunities” during the construction phase and around 250 permanent positions when the plant is fully operational. ($1 = €0.90)

01-Oct-2024

HOUSTON (ICIS)–More than 4 million outages were reported in the southeastern US on Friday after Hurricane Helene made landfall as a powerful Category 4 storm in northwestern Florida. The southeastern US does not have a lot of chemical production. But such widespread power outages, in addition to disruptions caused by flooding, will lower demand for plastics and chemicals more broadly. The power outages are concentrated in the US states of South Carolina, Georgia, Florida and North Carolina, according to the website poweroutage.us. Among the few chemical plants near Helene's landfall site are a crude sulphate turpentine refinery and a crude tall oil (CTO) refinery that Kraton owns in Panama City, Florida. Tall oil is a feedstock fatty acids, renewable diesel and sustainable aviation fuel (SAF). Kraton has not returned requests for comment in regard to its preparations for Helene. Since Helene made landfall, it has weakened into a tropical storm, with maximum sustained wind speeds of 45 miles/hour (75 km/hour), according to the National Hurricane Center. The following map shows its projected path. Source: National Hurricane Center PORT CLOSURESInbound and outbound traffic at Port Tampa Bay ceased ahead of the storm, and the port's shipping channels were closed. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Other port closures include Panama City, St Joe, St Petersburg, Manatee and Key West on Florida's west coast, as well as Fernandina, Jacksonville and Canaveral on Florida's east coast. ENERGY DISRUPTIONS The following table shows the disruptions to US Gulf production that were caused by Helene, according to the Bureau of Safety and Environmental Enforcement (BSEE). Total % of US Gulf Oil, bbl/day 441,923 25.25% Gas, million cubic feet/day 363.39 19.81% Source: BSEE Total % of US Gulf Platforms evacuated 27 7.28% Rigs evacuated 1 20% Source: BSEE The Gulf of Mexico accounts for 14% of US production of crude oil and 5% of total dry gas production, according to the Energy Information Administration (EIA). RAIL DISRUPTIONS Railroad company CSX planned to close its TRANSFLO terminals in Tampa and Tampa Port on Thursday. Railroad company Norfolk Southern said that customers with shipments moving through the southeast and mid-Atlantic should prepare for delays. RECONSTRUCTION AND CHEM DEMANDHurricane Helene's current path could put $5.64 billion worth of housing at risk to storm surge flooding, an insurance data company said on Wednesday. Nearly 25,000 residential properties in the Tallahassee and Homosassa Springs metropolitan areas are at risk, said CoreLogic. “Helene has the potential to become a once-in-a-generation storm,” said Jon Porter, chief meteorologist for the meteorology firm AccuWeather. It estimates that most of Florida and much of the southeastern US will be exposed to winds reaching 40-60 miles/hour. AccuWeather expects that most of Florida and all of the states of Georgia, South Carolina and North Carolina are at risk for tornados. For hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows Helene before it made landfall. Image by National Hurricane Center.

27-Sep-2024

HOUSTON (ICIS)–A quarter of US oil production in the Gulf of Mexico remains shut in as Helene becomes close to becoming a major hurricane. The following table shows the disruptions to US Gulf production that were caused by Helene, according to the Bureau of Safety and Environmental Enforcement (BSEE). Total % of US Gulf Oil, bbl/day 441,923 25.25% Gas, million cubic feet/day 363.39 19.81% Source: BSEE Total % of US Gulf Platforms evacuated 27 7.28% Rigs evacuated 1 20% Source: BSEE Hurricane Helene has maximum sustained wind speeds of nearly 110 miles/hour (175 km/hour), which is 1 mile/hour below becoming a major hurricane. It is on track to make landfall in the Big Bend, a sparsely populated region of northwestern Florida. The following map shows the forecasted path of Helene. Source: National Hurricane Center FLORIDA CHEMS AT RISKHelene could threaten Panama City, Florida, where Kraton operates a crude sulphate turpentine refinery and a crude tall oil (CTO) refinery. Tall oil is a feedstock for the production of fatty acids, renewable diesel and sustainable aviation fuel (SAF). Helene's path is too far east to threaten Pensacola, which is home to some nylon and thermoset resin plants. Helene is moving on the opposite side of Texas and Louisiana in the Gulf of Mexico. Those two states are home to most of the refineries, petrochemical plants and LNG capacity of the US. Operations at those plants will not be threatened by Helene. Helene will not make landfall near Tampa Bay, an important hub for the US fertilizer industry. Tampa hosts corporate offices, trading, product storage, shipping and other logistical operations. Nonetheless, Helene will disrupt operations at the port of Tampa Bay. PORTS CLOSED TO TRAFFIC ALONG EASTERN GULF COASTInbound and outbound traffic has ceased among numerous ports along Florida's Gulf Coast, including Port Tampa Bay, an important entrepot. Tampa is in the region that could see a peak storm surge of 5-8 feet (1.5-2.4 meters), as shown in the following map. Source: National Hurricane Center The following table shows some of the other ports in Florida that are closed. Panama City, Florida Port St Joe, Florida St Petersburg, Florida Manatee, Florida Source: US Coast Guard The following ports are open with restrictions. Pensacola, Florida Mobile, Alabama Source: US Coast Guard RAIL DISRUPTIONS Railroad company CSX plans to close its TRANSFLO terminals in Tampa and Tampa Port on Thursday. Railroad company Norfolk Southern said that customers with shipments moving through the southeast and mid-Atlantic should prepare for delays. RECONSTRUCTION AND CHEM DEMANDHurricane Helene's current path could put $5.64 billion worth of housing at risk to storm surge flooding, an insurance data company said on Wednesday. Nearly 25,000 residential properties in the Tallahassee and Homosassa Springs metropolitan areas are at risk, said CoreLogic. “Helene has the potential to become a once-in-a-generation storm,” said Jon Porter, chief meteorologist for the meteorology firm AccuWeather. It estimates that most of Florida and much of the southeastern US will be exposed to winds reaching 40-60 miles/hour. AccuWeather expects that most of Florida and all of the states of Georgia, South Carolina and North Carolina are at risk for tornados. For hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail photo: Helene. (By the National Hurricane Center) (adds missing world "Gulf" in headline)

26-Sep-2024

HOUSTON (ICIS)–Australian global miner Rio Tinto has announced it will develop Pongamia seed farms in Australia as part of a new biofuels pilot and explore the potential of Pongamia seed oil as a feedstock for renewable diesel, a cleaner alternative to traditional fossil fuels. The company also wants to determine if it can contribute to Rio Tinto's renewable diesel needs while potentially contributing to the growth of a new biofuel sector in Australia. Pongamia is a legume tree native to Australia which is fast-growing, resilient and produces oil-rich seeds that can be processed into renewable diesel with the seed able to be harvested annually, leaving the trees and soil intact to store carbon dioxide. ​ Rio Tinto said it is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields. It has partnered with Midway Limited, to oversee the planting and management of the Pongamia seed farms and who will also engage with nurseries, agricultural experts and research organizations throughout the pilot. As part of its ongoing efforts to achieve net-zero Scope 1 and 2 carbon emissions by 2050, Rio Tinto is actively exploring the potential of biofuels in the low-carbon energy mix. The company said it sees biofuels as an avenue to reduce reliance on fossil diesel, while fleet electrification technologies mature. It is also investigating how biofuels could be used in scenarios where electrification may face practical limitations. “Diesel accounts for around 10 percent of our emissions footprint in Australia. While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the mid-term,” said Jonathon McCarthy, Rio Tinto Chief Decarbonisation Officer. “Australia does not yet have a biofuel feedstock industry sufficient to meet domestic demand. A sustainable biofuels industry here could enhance the region’s fuel security, create local economic opportunities and contribute to emissions reductions targets.” The company said this pilot follows a smaller-scale trial at Rio Tinto Gove operations in the Northern Territory where Pongamia saplings were planted to learn more about their response to low soil quality, heat and other climatic conditions in northern Australia.​

20-Sep-2024

SAO PAULO (ICIS)–The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials. Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET). See bottom list for details. Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year. The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur. The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals. The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar. Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share. Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex. “[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS. “We will continue to fight to ensure that these unreasonable measures are reversed.” Product Current Tax Rate Proposed Tax Rate Plaintiff Phosphoric acid with iron content less than 750 ppm 9% 17.5% Abiquim Sodium hydrogen carbonate (bicarbonate) 9% 20%* Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Elekeiroz Inc. Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Abiquim Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Rhodia Brasil SA Butanone (methyl ethyl ketone) 10.80% 20% Abiquim Ethyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Rhodia Brasil SA Other saturated acyclic monoalcohol acetates, c atom <= 8 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Unigel Holdings Inc. Adipic acid 9% 20% Abiquim Adipic acid 9% 20% Rhodia Brasil SA Maleic anhydride 10.80% 20% Abiquim Maleic anhydride 10.80% 20% Elekeiroz Inc. Fumaric acid, its salts and esters 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Elekeiroz Inc. Dinonyl or didecyl orthophthalates 10.80% 20% Abiquim Hexamethylenediamine and its salts 10.80% 20% Abiquim Monoethanolamine and its salts 12.60% 20% Abiquim Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, with filler 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, without filler 12.60% 20% Abiquim Other unfilled polyethylenes, density >= 0.94, in primary forms 12.60% 20% Abiquim Other copolymers of ethylene and vinyl acetate, in primary forms 12.60% 20% Abiquim Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94 12.60% 20% Abiquim Unfilled polypropylene in primary form 12.60% 20% Abiquim Propylene copolymers, in primary forms 12.60% 20% Abiquim Expandable polystyrene, unfilled, in primary form 12.60% 18% Abiquim Other styrene polymers, in primary forms 12.60% 20% Abiquim Other styrene polymers, in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by suspension process 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Alpek Polyester Pernambuco SA Other unsaturated polyethers, in primary forms 12.60% 20% Abiquim Ex – Surfactant polymer class preparation, silicone free 12.60% 12.60% Abiquim Ex – Solvent-free modified polyester class preparation 12.60% 12.60% Abiquim White mineral oils (vaseline or paraffin oils) 3.60% 35% Abiquim Silicon dioxide obtained by chemical precipitation 9% 18% Abiquim Silicon dioxide obtained by chemical precipitation 9% 17% Rhodia Brasil SA Other silicon dioxides 0% 18% Abiquim Commercial ammonium carbonates and other ammonium carbonates 9% 18% Abiquim Styrene 9% 18% Abiquim Styrene 9% 18% Unigel Holdings Inc. Butan-1-ol (n-butyl alcohol) 10.80% 20% Abiquim Butan-1-ol (n-butyl alcohol) 10.80% 20% Elekeiroz Inc. Propylene glycol (propane-1, 2-diol) 10.80% 20% Abiquim Dipropylene glycol 12.60% 20% Abiquim Triacetin 10.80% 20% Abiquim Triacetin 10.80% 20% Denver Specialty Chemicals 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Abiquim 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Elekeiroz Inc. Salts and esters of adipic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Elekeiroz Inc. Phthalic anhydride 10.80% 20% Abiquim Phthalic anhydride 10.80% 20% Petrom Petrochemicals Mogi das Cruzes S/A Ammonium nitrate, even in aqueous solution 0% 15% Abiquim Pigments and preparations based on these pigments 12.60% 20% Abiquim Linear alkylbenzene sulfonic acids and their salts 12.60% 23% Abiquim Organic surface-active agents, non-ionic 12.60% 23% Abiquim Alkylbenzene mixtures 10.80% 20% Abiquim Stearic acid (industrial monocarboxylic fatty acid) 5.40% 35% Abiquim Stearic alcohol (industrial fatty alcohol) 12.60% 20% Abiquim Sodium methylate in methanol 12.60% 20% Abiquim Other ethylene polymers, in primary forms 12.60% 20% Abiquim Filled polypropylene, in primary form 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by emulsion process 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Unigel Holdings Inc. Other polyether polyols, in primary forms 12.60% 20% Abiquim Other polyesters in liquids and pastes 12.60% 20% Abiquim Other polyurethanes in liquids and pastes 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Denver Specialty Chemicals Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms 10.80% 22% Abiquim Acrylonitrile-butadiene rubber in sheets, plates, etc. 10.80% 35% Abiquim Latex of other synthetic or artificial rubbers 10.80% 35% Abiquim  

19-Sep-2024

SINGAPORE (ICIS)–Thai conglomerate Siam Cement Group (SCG) plans to use ethane imported from the US as feedstock for its Long Son Petrochemical (LSP) complex in Vietnam to boost the project’s long-term competitiveness. Storage, supporting facilities for ethane to be built on site Ethane targeted as major feedstock for LSP cracker; C2 market “turbulence” expected LSP commercial operations start October SCG is in talks with a contractor for the new ethane storage project, with construction of the facilities expected to take about three years to complete, the company said in roadshow presentation on 16 September. “The site is equipped with a central utility system, ready for the installation of ethane gas storage tanks and pipelines,” the company said in a separate statement on 16 September. SCG has yet to finalize the capital expenditure for the project, and the prospective US ethane supplier for LSP was not disclosed. The $5.4bn LSP project in Ba Ria-Vung Tao province is Vietnam’s first integrated petrochemical complex and is 100%-owned by Thai conglomerate SCG. The mixed-feed cracker at the site currently uses propane and naphtha feedstocks imported from Qatar under a long-term supply deal. The cracker can produce 950,000 tonnes/year of ethylene; 400,000 tonnes/year of propylene; and 100,000 tonnes/year of butadiene (BD). SCG said that LSP is already operating flexible gas cracker which can use a variety of feedstocks, including ethane, propane, and naphtha. Ethane imported from the US is currently cheaper by $200-400/tonne than existing feedstock, SCG said, noting that the average price of ethane has been around 40% lower than that of naphtha and propane over the past three years. The feedstock derived from shale gas also provides greater price stability as it is linked to US natural gas prices, unlike naphtha, which is influenced by oil price fluctuations. FEEDSTOCK DIVERSIFICATION The enhancement to LSP's feedstock flexibility is part of SCG's efforts to bolster its chemicals business in the face of global oversupply, low demand and oil price volatility, SCG said. For ethylene (C2), the company expects "future turbulence" in the market, especially in 2027-2028 amid a wave of new global cracker additions, especially in China. Global ethylene supply is projected by SCG to grow at a slower average rate of around 3-4% in 2025-2030, compared with 5% in 2019-2024. China will comprise around 53% of new ethylene supply additions in 2025-2030, it noted. SCG expects an "extended chemicals trough with low margin" in 2025-2030 amid continued naphtha price volatility. “The current global situation and the future outlook over the next 2-5 years will be marked by increased volatility,” SCG CEO and president Thammasak Sethaudom said on 16 September. “All SCG businesses are moving forward with strategies that align with these dynamics while also reducing carbon dioxide emissions…to ensure long-term competitiveness.” LSP COMMERCIAL OPERATIONS START OCTOBER The LSP complex has completed performance test runs in September and is on track to start commercial operations next month, according to SCG. Its utilization rate following start-up will be "determined by global demand dynamics", it said. LSP’s downstream plants include a 500,000 tonne/year high density polyethylene (HDPE) unit; a linear low density PE (LLDPE) unit of the same capacity; and a 400,000 tonne/year polypropylene (PP) unit. The cracker had an outage in February due to a technical issue and resumed normal operations in August. It had declared a force majeure in February due to issues at the cracker that also shut its downstream PE and PP units. Credit ratings agency Fitch Ratings in a note on 17 September said that it expects LSP to ramp up its utilization rate to 70-80% in 2025, “supported by its cost competitiveness versus imports and the flexibility to use both propane and naphtha as feedstock”. Imports currently fulfil nearly all of Vietnam's petrochemical requirements. Focus article by Nurluqman Suratman Thumbnail photo: Aerial view of SCG's Long Son Petrochemical Complex in Vietnam (Source: SCG)

19-Sep-2024

HOUSTON (ICIS)–Mineral development company First Phosphate announced it has the results of its initial mineral resource estimate for its Begin-Lamarche project, located in the Saguenay-Lac-St-Jean Region, Quebec. The MRE was undertaken by P&E Mining Consultants and it showed favorable results with there being an inferred pit-constrained mineral resource of 214 million tonnes at a phosphate grade of 6.01%, with an indicated pit-constrained mineral resource of 41.5 million tonnes with a grade of 6.49%. First Phosphate said the Begin-Lamarche deposit also presents the potential for recovering two additional primary mineral products which are a magnetite concentrate, iron and an ilmenite concentrate, titanium. It added that it contains very low levels of potentially deleterious elements. “We have demonstrated that the company benefits from a substantial strategic phosphate deposit located at only 70 km from the deep-sea port of Saguenay and Canadian Air Forces NATO Base Bagotville,” said John Passalacqua, First Phosphate CEO. “Our goal will be to bring this mineral resource into preliminary economic assessment later this year to then be able to evaluate the commencement of a feasibility study.”

18-Sep-2024

HOUSTON (ICIS)–The US Department of Energy (DOE) has announced a conditional commitment for up to $1.559 billion to Wabash Valley Resources to help finance a commercial-scale waste-to-ammonia production facility using carbon capture and sequestration (CCS) technology. The government funding would be part of a total investment of $2.4 billion that Wabash Valley Resources would secure for the project through private investment. Located in West Terre Haute, Indiana, the project is being planned to produce 500,000 tonnes of anhydrous ammonia annually and permanently sequestering 1.6 million tonnes of carbon dioxide annually. Officials said it will have the potential to be the world’s first, carbon-negative ammonia production facility and that the company would be repurposing an industrial gasifier to utilize petroleum coke. This will be the US’ first efforts to utilize petroleum coke to produce ammonia and store the associated emissions via permanent geologic sequestration. Wabash Valley Resources said it is their intention to demonstrate a commercially and environmentally viable end-use alternative for petroleum coke, which is a waste product generated during the oil refining process. Officials said this project would play a critical role in securing domestic fertilizer supply for the region commonly known as the Corn Belt, contributing to both food security and climate goals. This low-carbon ammonia would be cost-competitive compared to existing ammonia imports, helping to drive down costs for local businesses and consumers. It was noted that while ammonia fertilizer is a crucial element of the US agricultural system, its production is a significant contributor to climate change. Globally, the manufacturing of the nutrient accounts for 1% to 2% of all carbon dioxide emissions. Through this project, Wabash Valley Resources is striving to reduce the agricultural industry’s emissions. In addition to its environmental benefits, the project is expected to create 500 construction jobs and 125 operations jobs.

17-Sep-2024

HOUSTON (ICIS)–Fertilizer developer Genesis Fertilizers announced it has partnered with technology provider CARBONCO and has agreed to negotiate formal licensing and process design package services for a carbon capture and storage (CCS) project. Genesis said this collaboration marks a significant step toward the potential production of sustainable, low-carbon ammonia and urea nitrogen fertilizer for their farming partners and the broader fertilizer industry in North America. Under the terms CARBONCO would be responsible for implementing a solution capable of capturing approximately 1 million tonnes of carbon dioxide annually, which would then be transported directly to a sequestration hub. If implemented, the CCS project would be built at the proposed Genesis Fertilizers production complex to be constructed in Belle Plaine, Saskatchewan, Canada. The company said both parties are confident that this first-of-its-kind CCS project would play a pivotal role in supplying exceptionally clean grain to the market. “In line with our ultimate low carbon intensity fertilizer goal, Genesis Fertilizers has been working with CARBONCO and is pleased to welcome them as our technology provider to explore an exciting opportunity to implement their carbon capture solution,” said Jason Mann, Genesis Fertilizers CEO. “We believe that CARBONCO is the most suitable partner for our project, offering a robust solution that meets our technical and commercial needs.” The front-end engineering design (FEED) phase for Genesis Fertilizers project is expected to begin within the next few months. The company said the final investment decision will be made based on the results of the FEED work and other critical steps, but it is aiming to commence commercial operations by 2029. As proposed there would eventually be both ammonia and urea production with plans to have 75% of output locked into farmer commitments with the balance sold on the open market. Genesis has previously said the goal of this development is to help farmers have access to a vertically integrate fertilizer supply and enable the production of low carbon grain.

13-Sep-2024

HOUSTON (ICIS)–Industrial gas firm Messer announced it has entered into a long-term renewal of a carbon dioxide (CO2) purchase and sale agreement with US fertilizer producer LSB Industries. As part of the agreement, Messer said it will subsequently commit more than $9 million into the liquid CO2 plant at LSB’s Cherokee, Alabama, facility with a focus of this investment on the continued safe and reliable operations at the site. The plant manufactures fertilizers including ammonia, urea and urea ammonium nitrate (UAN) and it also makes industrial and mining offerings including ammonium nitrate (AN) solutions and diesel exhaust fluid (DEF). Messer said this deal will help increase security of its CO2 supply and provide continuity to customers for decades to come. “The efficiency upgrades for the plant modernization effort will add more molecules to our network and reduce CO2 emissions at the site in-line with our sustainability goals,” said Chris Ebeling, Messer executive vice president, sales & marketing, North America.

09-Sep-2024