Ammonia

Optimising profitability in this fast-moving market

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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.

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

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

Fertilizer producer Nutrien restarting Augusta facility in Georgia

HOUSTON (ICIS)–Canadian fertilizer major Nutrien confirmed it is in the process of restarting its Augusta, Georgia, facility. The operation which produces several products including ammonia and urea was shut down after Hurricane Helene made landfall under safety protocols during storm induced power failures. “I can confirm that Augusta is in start-up and expected to be back online later in the week,” said a Nutrien spokesperson. The plant’s annual production capacity is listed at 765,000 tonnes of ammonia, 415,000 of ammonia nitrate, 400,000 tonnes of UAN and 260,000 tonnes of urea. The producer had said on 30 September all their colleagues were safe at their locations but that in many areas, the roads had remained closed due to downed power lines and flooding. Further Nutrien did expect that it could take several days before their full post storm assessment was completed.

01-Oct-2024

PODCAST: Melamine upstream focus – key factors to watch out for in gas, ammonia and urea markets during Q4

LONDON (ICIS)–European Melamine Editor Melissa Hurley interviews Energy Market Reporter Lars Hoeylo Kjoellesdal, Senior Editor Sylvia Traganida, Deputy Managing Editor Deepika Thapliyal and Market Reporter Joy Foo. Ammonia, urea and gas market factors to consider for Q4 include: Volatile gas prices illustrate a finely balanced market Tight ammonia availability; some scheduled maintenances expected Unexpected gas-related shutdowns in Egypt short-lived; India urea tenders boost sentiment Certain factors support global urea market despite thin demand in Europe Demand in China showing signs of recovery before National Day holiday (1-7 October) China's average melamine operating rates hovering around 60%; market to track urea costs European melamine production cost pressure versus slow demand recovery Additional reporting from Energy Market Reporter Lars Hoeylo Kjoellesdal, Senior Editor Sylvia Traganida, Deputy Managing Editor Deepika Thapliyal and Market Reporter Joy Foo. Click here to listen in a separate window.

24-Sep-2024

RWE and AM Green Ammonia sign deal for long-term supply from India

HOUSTON (ICIS)–RWE Supply & Trading announced it has signed a memorandum of understanding (MoU) with AM Green Ammonia (AMG) for the long-term supply of green ammonia from its plants based in India. The terms outline the supply of up to 250,000 tonnes/year of green ammonia to be sourced from AMG's production sites in Kakinada and Tuticorin, India. Deliveries from AMG’s sites are expected to start by 2027 with a subsequent offtake agreement between RWE and AMG forthcoming which will detail the contractual provisions. The plan is that initially there will be 50,000 tonnes coming from the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility. AMG's ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind, and hydroelectric power and the produced ammonia will meet standards for Renewable Fuels of Non-Biological Origin (RFNBO). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway. “RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage,” said Costas Papamantellos, RWE Supply & Trading Head of International Hydrogen Investments.

18-Sep-2024

TFI tells Surface Transportation Board railroads need more focus on service and growth

HOUSTON (ICIS)–The Fertilizer Institute (TFI) told the US Surface Transportation Board (STB) in testimony on Tuesday that there is an ongoing need for the freight rail industry to shift its focus toward customer service and growth. The industry group said the fertilizer segment has long relied on rail service for the efficient and safe transport of its products, but it has struggled with declining service quality, increasing rates and a lack of attention to customer needs. “The fertilizer industry is heavily reliant on rail and cannot afford to see continued stagnation in freight rail service,” said Ryan Bowley, TFI vice president of government affairs. “Unfortunately, we have seen freight volumes plateau, services decline and rates skyrocket.” TFI said that their testimony comes at a pivotal time for the Class I railroads as the STB’s inquiry into the rail industry’s growth potential highlights a disturbing trend, which is that freight rail carloads have been in decline since 2008. Trucking and other transportation sectors have consistently expanded their capacity. At the same time that rail employment has dropped, and carloads have declined, rail rates have surged. TFI said between 2005 and 2017, rates for transporting critical farm inputs like anhydrous ammonia increased by over 200%. It noted that such price hikes, combined with inconsistent service, have made it difficult for fertilizer companies to meet the just-in-time delivery demands of farmers across the country. “These rising costs and service failures are particularly troubling for industries like ours, which depend on rail to move bulk products safely,” Bowley said. “Our members regularly face delays, held shipments and escalating rates, often without any recourse. It is clear that a new approach is needed.” TFI highlighted the need for the rail industry to pivot toward a customer-focused, growth-driven model that balances profitability with service quality as the industry’s adoption of Precision Scheduled Railroading has led to deep cuts in staff and equipment and adding to service issues. The group did praise recent moves by the STB to increase oversight of rail service and pricing, including the implementation of faster emergency service orders. It did stress the importance of additional reforms such as expanding access to reciprocal switching, a policy that would allow shippers to switch between competing rail carriers more easily. “The rail industry should be actively competing for freight, not relying on captive customers to drive revenue. We need a system where railroads are not just collecting more revenue from a shrinking base but are growing their business by serving more customers with better service,” Bowley said.

17-Sep-2024

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