"IFC was ready to make it official. The company was at 100 percent operation. It was time for the ribbon cutting."
Well, yes and no.
Yes, Iowa Fertilizer Company held a ribbon-cutting ceremony to celebrate its greenfield at Wever. No, Wever is hardly 100% complete: the ammonia plant is operational, but the downstream plants may be months away.
Agrium announced yesterday that it has "successfully commissioned" its new urea plant at Borger, TX, "with its first run of urea production." The plant had been mechanically complete at the end of 2016.
The Lithuanian investors behind a proposed ammonia plant in Louisiana have put the project "on hold indefinitely," according to local economic development officials quoted in the local press this week.
Dyno Nobel's new plant at Waggaman, LA, is producing ammonia above its daily rated capacity. Conversely, total production in 2017 is expected to be closer to 80% of annual capacity, because it is likely to be taken offstream regularly this year while it ramps up.
This article discusses the early performance of the Waggaman ammonia plant, and the cost overruns it saw during construction.
EuroChem's CEO confirmed in the Russian press yesterday that the company still intends to build its massive greenfield nitrogen plant in Louisiana. This article introduces some of the changing market conditions that will impact, for better or for worse, EuroChem's final investment decision.
2016 was a transformative year for the North American ammonia industry but, in 2017, the bigger impact will be on the urea industry.
Here's an update on four urea expansions expected on-stream this year and next, which will add almost two million tons of new urea capacity. In the process, they'll reduce the amount of ammonia that's available for sale by more than one million tons.
And, as a bonus, I have news on an embattled "clean coal" project that, in what might be a last gasp attempt at a viable business model, could potentially add another 1.5 million tons of urea in Texas.
I've published recent updates on four greenfield nitrogen plants that hope to break ground in 2017, potentially adding 1.8 million tons of ammonia capacity in the US.
The project pipeline is long, however, and others are making progress too. This article provides updates on another four projects that, together, could add more than 4 million tons to North American ammonia capacity through 2022.
Midwest Fertilizer Company continues to juggle progress and setbacks on its $3 billion greenfield nitrogen plant in Indiana, following the December 2016 termination of its EPC contract with ThyssenKrupp. In the last few weeks, we've seen updates on the EPC contract, air permits, debt financing in Pakistan, and the $1.259 billion tax-exempt bond issue in the US.
Five years after breaking ground, and almost three years behind schedule, US Nitrogen's ammonium nitrate plant in Tennessee has finally reached "full production capacity."
This project has been so fraught with problems - permitting, compliance, engineering design, construction, community acceptance, health and safety - that it wasn't always obvious whether the plant would ever be fully operational. Even now, a raft of legal challenges remain unresolved.
Grannus awarded two contracts for design and technology licensing in November, and it has started December with a third announcement, naming its new EPC partner.
Yesterday's announcement, which sees the previous engineering partner entirely replaced, focuses on the company's business model, which is not to be an ammonia producer, but to be a global licensor of regional-scale ammonia plant technology.
AM Agrigen has had its air permit extended for another year (unlike one other proposed greenfield) but, in its application, disclosed a completely different plan for the project.
For over a year, I've been commenting on the creativity that ammonia project developers have been forced to display, in order to demonstrate a viable business model.
The remaining pipeline of potential new ammonia plants has shifted away from brand-new, multi-billion dollar, world-scale plants producing multiple end products; these demonstrated good efficiencies of scale but became - evidently - almost unfundable.
Now the focus is on developing smaller ammonia plants, using diverse feedstocks, and avoiding as much new machinery as possible.
Over the last few weeks, Iowa Fertilizer Company and its parent, OCI NV, have been busy with the commissioning phase of their major greenfield at Wever, IA. However, they've also been restructuring bond payments, which was necessary "to ensure the successful completion of construction and first year of operations."
In the process, we've seen the bond rating downgraded, the IRS launch an examination, disclosures of project costs rising further, and hints at future mergers & acquisitions.
OCI has successfully refinanced the project. They hope to start producing ammonia soon but, if history is any guide, defining "soon" may be difficult.
The US Geological Survey (USGS) has just published the 2014 edition of its Mineral Yearbook: Nitrogen, which is, in my opinion, the best source of basic statistics for the national and global ammonia industry.
I've incorporated this new data in an update to my Salient Ammonia Statistics, which is an excel spreadsheet, available to download.
In case you wondered why the CEO of ThyssenKrupp Industrial Services resigned last week in Germany, it's all because of Midwest Fertilizer Company's greenfield plant in Indiana - and the (alleged) shenanigans involved in securing the Midwest EPC contract from Fatima Fertilizer Company in Pakistan.
Now that Honeywell has spun off its Resins and Chemicals division into the standalone AdvanSix Inc, we finally have some corporate transparency about plant operations.
In its first independent announcements over the last two weeks, notably including an operational update and its Q3 2016 earnings report, AdvanSix has provided lots of details of its financial and operational performance, and specified - for the first time - the plant's ammonia capacity.
Also, we learned that the planned turnaround in the fourth quarter was extended by two weeks of unplanned maintenance, which will hit Q4 2016 earnings to the tune of $20-25 million.