Category: Capacity Expansion Updates

US Nitrogen finally at full capacity

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.

Read more

OCI announces merger with OCI

I wrote last week about Iowa Fertilizer Company's greenfield plant at Wever, IA, and mentioned that OCI NV had begun hinting about mergers and acquisitions activity in recent disclosures.

This "phase of consolidation" has now begun for the Dutch owner of both the world-scale plant under construction at Wever, IA, and the ammonia-methanol plant operating at Beaumont, TX.

Read more

Grannus awards EPC contract

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.

Read more

AM Agrigen: new strategy for Louisiana ammonia plant

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.

Read more

OCI Wever update: rising costs, mergers and acquisitions, bond refinancing, no start-up yet

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.

Read more

Grannus awards engineering and licensing contracts (again)

In the last two weeks, Grannus LLC has awarded two contracts for process design and technology licensing: the first for hydrogen production, and the second for the ammonia loop.

These replace the engineering contract announced earlier this year, and bring the "zero-emission" ammonia plant closer to reality - albeit with a revised start-up schedule.

Read more

Midwest Fertilizer’s EPC contractor, TKIS: kickbacks, gifts, lawsuits, and resignations

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.

Read more

AdvanSix updates at Hopewell

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.

Read more

The Water Intensity of Ammonia

Agrium continues to plan for the potential restart of its ammonia-urea plant in Kenai, Alaska: its draft water permit is now entering a 30-day public comment period.

However, the fact sheet for the draft permit contains one particularly interesting chart, which follows below, to illustrate the water flows throughout the ammonia-urea plant. In an industry that holds its data close, this is a refreshingly detailed flow chart.

Read more

POT+AGU merger is on

The merger of equals between PotashCorp and Agrium was confirmed to be moving ahead this morning, in a press release announcing their boards' unanimous approval of the plan "to Create a World-Class Integrated Global Supplier of Crop Inputs."

"A new parent company will be formed to own both companies. PotashCorp shareholders will receive 0.400 common shares of the new company for each common share of PotashCorp they own, and Agrium shareholders will receive 2.230 common shares of the new company for each common share of Agrium they own."

Read more

US Nitrogen shut down “under federal and state investigation”

The grand SNAFU named US Nitrogen appears to have come to a temporary pause.

Despite starting up all the units over the last few months - nitric acid, ammonium nitrate, ammonia - the regulatory teams at state and federal levels overseeing US Nitrogen now appear to have come in and closed the site down, until they can enforce environmental and safety standards.

Read more