Technical study underway for Minbos Resources green ammonia project in Angola

HOUSTON (ICIS)–Australian fertilizer developer Minbos Resources announced that the technical study is underway for the proposed Capanda Green Ammonia project and that it is evaluating the potential for further renewable energy feedstock to be paired with existing hydroelectric power.

The producer said the technical study being undertaken by Stamicarbon and is expected to take six months and will include plant design, capital and operating cost evaluation. The results will form the basis for a scoping study to start immediately once the technical study is delivered.

Minbos said it has recently set the expected output of the project’s green ammonia volumes at 300,000 tonnes/year, which will be upgraded to an equal ratio of calcium ammonium nitrate (CAN) and ammonium nitrate (AN) although this balance is set to be flexible.

Due to receiving significant interest in potentially supplying explosive-grade AN across the African continent, the company said it is currently evaluating the potential for further renewable energy feedstock, including wind and solar energy.

According to mapping studies completed by the nation’s Ministry of Energy and Water, Angola holds great potential for renewable energy production.

Minbos noted that nearly all of the 183m tonnes of ammonia currently produced globally is generated from fossil fuels with 72% from natural gas and 22% from coal. It also highlighted that gas input costs at current levels are now several times the ammonia price.

As such it feels cost-competitive green ammonia presents the only real alternative to carbon emitting fossil-fuel created ammonia.

The producer, who is primarily advancing the Cabinda Phosphate project plant in northeast Angola, also announced that there is going to be a delay in receiving the final engineering report from the International Development Fertilizer Centre.

Minbos said it considers this to be a minor delay, which may impact the delivery of the project definitive feasibility study (DFS) by approximately two weeks.

It further announced that the company has been presented with a new opportunity for the location of the phosphate granulation plant. The alternative site is located in Zee Subantando, a suburb situated along the main highway between Cacata and Cabinda City.

The DFS is currently based on the plant being located at Futila while the alternative site is investigated further.

Minbos said it is likely that the alternative site will be the preferred location because of logistic advantages including less distance for product delivery from the plant to the Port of Cabinda and reduced costs to hold and maintain site.