Ammonia
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Ammonia is a key building block for fertilizers and other manufactured chemicals. Capitalise on market opportunities with supply chain data and expert analytics that help you keep track of vast volumes of data. Stay ahead of market movements and interdependencies not only for ammonia, but also for other crop nutrients and related chemicals, with trusted market intelligence and accurate forecasting.
Increasingly, ammonia is being valued as a potential contributor to the energy transition. As a carbon-free, easily dispatchable hydrogen carrier, it enables the cost-effective storage and distribution of large amounts of renewable energy. As such, ammonia is the key to facilitating a secure supply of renewable hydrogen.
To meet this broad spectrum of needs, we engage closely with producers, buyers and traders throughout the supply chain and across several continents. Working independently, we collate and constantly update a comprehensive view of ammonia price movements and supply and demand drivers. Inform your decision-making, with timely insights and accurate data.
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Carbon cost-adjusted ammonia price
(Northwest Europe)
The Carbon Border Adjustment Mechanism (CBAM) takes full effect in the European Union in 2026 and is expected to impact all aspects of the ammonia market. Manage costs and stay ahead of this evolving market with the ICIS carbon cost-adjusted ammonia price.
Our formula is based on the weekly CFR Northwest Europe Duty Unpaid spot/contract ammonia price, the weekly average carbon spot price from EEX EUA, carbon emission per tonne of NH3 (ammonia) production and free CO2 allocation per tonne of ammonia.
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Ammonia news
LyondellBasell may make 2026 FID on US chemical recycling plant
HOUSTON (ICIS)–LyondellBasell could make a final investment decision (FID) in 2026 on a second chemical recycling plant, which it may build in the US at its refinery site in Houston, the CEO said on Friday. "FID, for the final step, I would expect that to happen in 2026," said Peter Vanacker, LyondellBasell CEO. He made his comments during an earnings conference call. The chemical recycling plant would feature LyondellBasell's MoReTec process technology. The plant could produce 100,000 tonnes/year of cracker feedstock. If LyondellBasell moves ahead with the MoReTec plant, it could be part of a larger project that would convert the Houston refinery into a sustainability hub. The refinery's existing hydrotreaters would be retrofitted so they could upgrade the output from the MoReTec unit as well as from third-party recycling plants. Once upgraded, the feedstock could be shipped by pipeline to LyondellBasell's cracker operations in nearby Channelview, where it will be converted into olefins. Those olefins would be polymerized to produce circular polyolefins, which LyondellBasell would market under its CirculenRevive brand. LyondellBasell could also retrofit other units at the refinery that would convert renewable material into distillates and feedstock that the company could process in its crackers. LyondellBasell could market the resulting polymers under its CirculenRenew brand. LyondellBasell did not provide details about the source of these renewable feedstocks. However, one source could be a storage and logistics hub in Harvey, Louisiana, that is being developed by Kinder Morgan and Finnish refiner Neste. The hub collects used cooking oil and other renewable feedstock, and it could be expanded at Neste's option. Neste pioneered the production of naphtha from renewable feedstock, and the Houston refinery is a short distance by sea from Harvey. In the future, the hydrogen that LyondellBasell would need for upgrading recycled and renewable feedstock could come from nearby blue and green hydrogen projects. LyondellBasell, Air Liquide, Chevron and Uniper are part of a consortium that is evaluating sites for a hydrogen and ammonia project on the Gulf Coast. The Houston refinery is the top choice for the site. More hydrogen could come from the proposed Houston HyVelocity Hub. It is among the hubs participating in the Department of Energy's Regional Clean Hydrogen Hubs program. SHUTDOWN OF HOUSTON REFINERY IN Q1In January, LyondellBasell will start shutting down the first crude distillation unit and coker train at the refinery. In February, the company will begin shutting down the second crude distillation unit and coker train, the fluid catalytic cracking (FCC) unit and other ancillary units. The refinery does not have a catalytic reformer. CONSTRUCTION STARTS AT GERMAN RECYCLNG PLANTIn September, LyondellBasell started construction at its MoReTec 1 plant in Wesseling, Germany, which will have a capacity of 50,000 tonnes/year and which should start up in 2026. Vanacker said the plant has a plastic-to-plastic yield of more than 80%. It can use 100% renewable power. Thumbnail photo: Plastic which can be recycled. (By Allison Dinner/EPA-EFE/Shutterstock)
01-Nov-2024
CF Industries said global nitrogen pricing supported by many factors including natgas shortages
HOUSTON (ICIS)–CF Industries said in its latest nitrogen fertilizer market outlook global pricing was supported in the third quarter of 2024 by strong global demand, lower supply availability due to natural gas shortages, China’s absence in urea exports and planned maintenance activities in the Middle East. The US fertilizer producer said that in the near-term their management expects the global supply-demand balance to remain constructive, as inventories globally are believed to be below average and energy spreads continue to be significant between North America and high-cost production in Europe. CF said for North America that while grains prices are under pressure from expected high crop production it is their belief that the fall ammonia application season for the US and Canada will be positive if weather is favorable. US crop returns for 2025 are forecast at similar levels to 2024, which is expected to support stable planted corn acres year on year. The producer said over the medium-term, significant energy cost differentials between North American producers and high-cost producers in Europe and Asia are expected to persist. As a result, CF believes the global nitrogen cost structure will remain supportive of strong margin opportunities for low-cost North American producers. Looking at Brazil the producer said through September 2024 that urea imports to the country were 5.4 million tonnes, 13% higher than through the same period in 2023. CF said Brazil is expected to import 2.0-2.5 million tonnes of urea in the fourth quarter due to forecast higher planted corn acres and nominal domestic production. For India the company feels there is significant urea import requirements remaining through March 2025 due to favorable weather for rice, wheat and other crop production as well as lower-than-targeted domestic urea production driving greater import need. Regarding Europe CF said there is approximately 20% of ammonia and urea capacity which was reported in shutdown or curtailment modes as of September 2024. The company said management believes that ammonia operating rates and overall domestic nitrogen product output in Europe will remain below historical averages over the long-term given the region’s status as the global marginal producer. For China the producer noted that the ongoing urea export controls by the government continues to limit urea export availability from the country. Through September 2024, China has exported 254,000 tonnes of urea, 91% lower than the same period in 2023. In Russia the company said the urea exports have increased by 5% this year due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase Russian fertilizer, including Brazil and the US. Exports of ammonia are expected to rise with the completion of the country’s Taman port ammonia terminal though CF noted that annual ammonia export volumes are projected to remain below pre-war levels. Looking at the longer-term view of nitrogen the producer is expecting the global supply-demand balance to tighten as global capacity growth over the next four years is not projected to keep pace with expected global lift in demand of approximately 1.5% per year. As far as global production CF said it is expected to remain constrained by continued challenges related to cost and availability of natural gas.
30-Oct-2024
US LSB Industries completes Oklahoma facility turnaround, expects uptick in UAN output
HOUSTON (ICIS)–US LSB Industries said it was able to complete a successful turnaround of their Pryor, Oklahoma, fertilizer facility. The company said in a third quarter update that the investments at Pryor were focused not only on improving its reliability and daily ammonia production volume, but also included the debottlenecking of the facility's urea plant. LSB expects this effort will result in an incremental of 75,000 short tons annually of UAN output. At the El Dorado, Arkansas, facility the producer said it completed the construction of an additional 5,000 short tons of nitric acid storage which is providing the ability to capitalize on incremental sales opportunities not previously available. A turnaround at the Cherokee, Alabama, facility will take place this November and a turnaround at El Dorado is scheduled for the third quarter of 2025, with the primary goal being increased volumes. LSB said it continues to make progress on its two energy transition projects and is expecting to start producing low carbon products at El Dorado beginning in 2026 pending regulatory approval. Regarding the Houston Ship Channel project, the company said it has completed the pre-front end engineering design and is working through the results as well as engaging with potential customers and preparing to select an engineering contractor for the final study. It expects to start that effort during the first half of 2025 with completion by mid-2026. Looking at fertilizer market conditions the producer said the ammonia market is healthy, and pricing has been strong driven by many factors including tight US supply dynamics along with geopolitical concerns and extended turnarounds and outages reducing global inventories LSB also cited the delayed start-up of new production capacity in the US Gulf and an export terminal in Russia For UAN the producer said pricing remains solid due to low inventories in the distribution channel following both spring applications and summer fill program with there being historically low imports and strong exports As it looks ahead it feels there is potential pent-up demand at the retailer and producer level which could lead to favorable order volumes and pricing in the first half of 2025.
30-Oct-2024
Canadian AmmPower collaborating with FuelCell Energy to improve clean ammonia production
HOUSTON (ICIS)–Canadian ammonia production technologies firm AmmPower announced it has entered a strategic collaboration with FuelCell Energy to participate in pilots of distributed ammonia production. The company said the partnership will result in the integration of AmmPower’s modular ammonia production units with FuelCell Energy’s highly efficient solid oxide electrolyzer systems, improving clean ammonia production efficiencies and opening new commercial avenues. AmmPower’s Independent Ammonia Making Machine (IAMM) is designed to produce up to four tonnes of carbon-free ammonia daily using renewable electricity. By coupling this technology with FuelCell Energy’s solid oxide electrolyzer the joint effort is expected to reduce energy consumption by over 25% compared to traditional processes. The company said that the FuelCell Energy’s Solid Oxide Electrolyzer Cell produces hydrogen at nearly 90% electrical efficiency without excess heat and can reach 100% efficiency when using excess heat. Further it noted that hydrogen produced from electrolysis can be stored long term and transported, allowing energy from wind, solar and nuclear to be available on demand. “As we look forward, our focus is on applying these advanced technologies to meet the critical needs of agriculture and industrial sectors, where ammonia plays a key role,” said AmmPower CEO Gary Benninger. “This partnership is about more than just technological innovation, it’s about providing practical solutions that enhance productivity and sustainability in vital industries.”
24-Oct-2024
Idemitsu Kosan, Mitsubishi Corporation announce joint study on low-carbon ammonia
HOUSTON (ICIS)–Idemitsu Kosan and Mitsubishi Corporation announced they have agreed to jointly study the efficient operation of clean ammonia carriers and transshipment terminals. The companies said in a statement this effort will look at ExxonMobil’s planned low-carbon hydrogen and low-carbon ammonia production project in Baytown, Texas, as well as the offtake of ammonia. Further through this combined effort, Idemitsu and Mitsubishi Corporation intend on accelerating their study on structuring a supply chain for low-carbon ammonia which is procured from overseas. Idemitsu, which has established an ammonia import and receiving terminal at its Tokuyama Complex, said it aims to jointly introduce over 1 million short tons of ammonia as fuel and raw materials by 2030 in cooperation with other companies. For its part Mitsubishi Corporation said it is assessing the partial conversion of its Namikata terminal into an ammonia terminal. It is also preparing to build a hub terminal that will supply approximately 1 million short tons of ammonia annually to various industrial applications such as electricity, transportation and chemicals by 2030. Idemitsu and Mitsubishi Corporation said they both plan to supply the low-carbon ammonia volumes produced by this project to Japan through their receiving terminals.
23-Oct-2024
A practical approach to energy could support EU competitiveness – GIE
EU energy policy must be less ideological in next five years, GIE conference hears Lowering high energy prices, which harm industry, a key goal for incoming Commission Commissioner confirmation hearings to take place 4-12 November MUNICH (ICIS)–The incoming European Commission must move away from ideological energy policy if it hopes to stabilize prices and keep industry competitive, delegates heard at the Gas Infrastructure Europe (GIE) conference in Munich on 17-18 October. However, despite an announced focus on a ‘clean industrial deal’, doubts remain that Europe can apply the lessons learned from the energy crisis. Speaking to ICIS on the sidelines, Tsvetelina Penkova, vice-chair of the European Parliament’s energy and industry committee said the thought the upcoming commissioner hearings would be “dynamic”, though she hoped the meetings would be constructive rather than unpleasant. Nominated commissioners must be confirmed by the European Parliament before they can take up their roles. Hearings are scheduled for 4-12 November. “The problem is quite a lot of topics are overlapping [in commissioners’ portfolios], so it’s very difficult to distinguish exactly the area of expertise,” she said, citing concerns over who would ultimately be responsible for decisions and the time involved if multiple people sign off policies. Penkova told delegates that fluctuations in energy prices between different regions harmed competitiveness and energy security. The discrepancy “really depends on the energy source that’s being used at the moment,” she said, as a lack of proper grid interconnections created bottlenecks, and without fixing this Europe’s energy landscape would remain dominated by local, regional or national solutions. The topic of surging heatwave-driven power prices experienced in central and southeastern Europe also dominated a meeting of EU energy ministers in Luxembourg on 15 October. Penkova called for energy resilience as well as a diversity of sources, including renewables, hydrogen, ammonia and other carriers, alongside storage and flexibility solutions. “We must understand that dependency only on one single sector or energy source is naive. That’s definitely not going to work,” she said. GIE president-elect Arno Bux stressed to delegates that gas infrastructure would remain vital for decades to come, citing nascent hydrogen, biomethane and carbon dioxide markets. “We all know pipelines … are by far the most efficient way to transport and store energy,” he said. But the industry was hindered by 1990s-era regulation, Bux said, which failed to foresee the need to maintain and expand infrastructure under uncertain conditions or the costs involved. NUCLEAR SCEPTICISM? Penkova dismissed concerns over nuclear skepticism previously voiced by the nominees for energy commissioner, Denmark’s Dan Jorgensen, and executive vice-president Teresa Ribera from Spain, tasked with delivering the ‘clean, just and competitive transition’. Noting that the parliament considered nuclear generation as strategic and sustainable technology, Penkova told ICIS she didn’t foresee any change in Europe’s policy, but instead hoped for better integration. “When we’re speaking of nuclear waste, we shouldn’t be looking only [at] the countries that are producing nuclear energy, but also at countries that are consuming [it], because we are all part of the waste creation,” she said. CLEAN AND INDUSTRIAL Ilaria Conti, gas expert and coordinator for strategy and development at the Florence School of Regulation, told delegates it was important the EU had not watered down its commitment to decarbonize, instead aiming to use industry as the “engine” of the transition. The shift followed the results of European parliamentary elections in June, which saw a perceived backlash against green policies. "The election results forced people to realise that achieving climate neutrality targets on time but losing the economy and the electorate along the way was unhelpful, " said Niko Bosnjak, head of policy and communication at the German grid operator OGE. Bosnjak said he worried that there was less urgency for policymakers to act since the pressure had eased, despite net-zero goals rapidly approaching. “I’m afraid we’re getting into the regular slump that we’ve been in before. I’m not saying I’m all for crises, ok? I think no one wants that, but we need to do better a better job in translating the learnings,” he said. For example, Bosnjak wondered why there was not middle ground between the 9-month construction of an LNG-import pipeline during the crisis and the return to an average of 6-8 years to build infrastructure. Conti said she thought plans to make the Commission more interdependent was “actually in my opinion a very smart move by Ursula von der Leyen.” The overlapping briefs would hopefully force incoming commissioners to cooperate, Conti said, breaking down past silos where each commissioner focused only on their own portfolio.
22-Oct-2024
Ohmium International to develop solutions for offshore green hydrogen, ammonia project
HOUSTON (ICIS)–Green hydrogen company Ohmium International announced it has signed a term sheet with renewable energy joint venture SwitcH2 BV to develop electrolyzer solutions for an offshore floating green hydrogen and ammonia synthesis project. Ohmium designs and manufactures scalable proton exchange membrane (PEM) electrolyzers, which it touts as enabling cost-competitive green hydrogen production, and under this agreement they will develop PEM electrolyzer solutions for the offshore project to be led by SwitcH2. Ohmium's PEM electrolyzers will utilise nearshore solar and wind power, along with treated seawater, to produce green hydrogen. The hydrogen will be fed into an on-deck ammonia synthesis unit, and the resulting product will eventually be offloaded onto an ammonia carrier for transport. The project will be located off southern Europe and create an industrial scale floating green hydrogen and ammonia production facility with an estimated an annual production capacity of up to 55,000 tonnes of green hydrogen and almost 300,000 short tons of green ammonia. Officials said the project is anticipated to have green ammonia production by 2029. “We are pleased to have Ohmium join us in making this pioneering project possible,” said Bob Rietveldt, SwitcH2’s director and co-founder. “Their product delivers high efficiency, and the comprehensive, standardized design enables flexible and rapid installation, at scale.” Ohmium CEO Arne Ballantine said the company was thrilled to be part of what it called a transformative project and that they appreciate the expertise that SwitcH2 brings to offshore floating production. “The market for green ammonia is poised to grow exponentially in the coming decades, especially as a source of clean fuel for the global shipping industry, and Ohmium is looking forward to collaborating with SwitcH2 in helping address that need,” said Ballantine.
18-Oct-2024
US fertilizers measuring Milton damages but appear limited with only short production delay
HOUSTON (ICIS)–The fertilizer industry, like the rest of the Tampa, Florida, community, was still feeling the effects from Hurricane Milton even days after the storm as producers continue to assess damages and determine the impact this might have on their production. With electrical power steadily being restored, the cleaning up efforts are also making progress with flooding appearing to have had the most far-reaching consequences as the incredible powerful hurricane is estimated to have unleashed 3.4 trillion gallons of water upon Florida. As a key hub for fertilizers in the US, with both production and logistics as well as storage and corporate offices, there had been concerns over how much destruction could have been experienced if it had not weakened some before landfall or had made a direct strike into Tampa. Industry sources within the area said some normality to everyday life was returning with market activity likely needing several more days to recover. As a participant said it is “all good here, got power everywhere now. No damage to the office or homes.” For producers, the review of the consequences of Milton were still at hand but considering the magnitude of the event it looks like the industry’s assets held up fairly well and that output of phosphates will only see a very short delay. With their White Springs phosphate facility located within Florida, Canadian fertilizer producer Nutrien had previously said it was not impacted by Hurricane Milton, but it was by the earlier strike of Hurricane Helene, with those affects still underway. “The timeline for re-starting our White Springs phosphate facility continues to be assessed. We are working with our customers on any potential impacts to supply,” said a Nutrien spokesperson. Having not completely escaped the wrath of Milton, Mosaic had confirmed on 14 October that there was limited damage to their facilities and warehouse product. The producer is expecting to resume full production in the coming days, and also said there was no significant environmental impacts that occurred due to the storm. It is understood that producer Yara did not suffer any damages or lost time at its ammonia plants from the hurricane.
15-Oct-2024
Woodside Energy confirms there was a fatality at Beaumont Clean Ammonia project
HOUSTON (ICIS)–Woodside Energy has confirmed that it experienced an incident on 3 October at the Beaumont Clean Ammonia site in Texas, which resulted in the death of an employee of one of fertilizer producer OCI’s construction contractors. In a statement, Woodside said that the incident occurred at approximately 8:30 am US central time at the Texas facility it recently acquired with construction efforts being managed by OCI. The company did not provide further details of the event other than to say the incident occurred during work activity being carried out at the site. It added that no one else was harmed. Woodside said that senior management was headed to the ammonia site and that a full investigation will be initiated. Currently a stand down of all work at the site is now in place. “This is a very sad day, and I offer my deepest sympathy to our colleague’s family, friends and workmates. The safety of our workforce is always our top priority, and we are providing full support to OCI and its contracting company,” said Meg O’Neill Woodside Energy CEO. “We are taking steps to understand the circumstances around this tragic event and are working closely with relevant authorities and regulators, OCI and the contractor company.” For its part, OCI responded by saying: “This is an incredibly sad time for OCI, and we extend our deepest condolences to our colleague’s family, friends, and co-workers. "The safety and well-being of our employees and contractor employees are of paramount importance to us. Both Woodside and OCI remain committed to providing a safe working environment and will take all necessary measures to prevent such tragedies in the future. We are fully cooperating with local authorities to investigate the circumstances surrounding this incident.” (recasts, amending OCI quote in final paragraph)
04-Oct-2024
US CF Industries has fatal accident at Donaldsonville fertilizer complex in Louisiana
HOUSTON (ICIS)–US fertilizer producer CF Industries confirmed it had an accident on 2 October at their nitrogen fertilizer complex in Donaldsonville, Louisiana, which resulted in an employee being transferred to a local hospital where they later passed away. The company said through a spokesperson that the incident occurred at approximately 13:45 and that the medical personnel onsite did quickly respond and assessed the injuries, with the individual then transported to a nearby hospital. CF is not identifying the worker or providing any additional details surrounding the circumstances of the accident but said it is focused on supporting this individual’s family and fellow employees at the fertilizer complex. “We are deeply saddened to confirm that a CF Industries employee at the Donaldsonville Complex passed away in a local hospital following an accident onsite earlier today. Our thoughts and prayers are with their family at this difficult time. We are committed to supporting the family as well as providing assistance to the Donaldsonville team,” said a CF Industries spokesperson. The producer did add that this was an isolated incident with no related operational issues or offsite impacts. Located on the Mississippi River in Ascension Parish, the Donaldsonville site is the largest production complex in the world producing anhydrous ammonia, urea, and urea ammonium nitrate (UAN) and nitric acid.
03-Oct-2024
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