Grannus awards EPC contract

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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.

Grannus announced that its new EPC partner will be Plant Process Equipment, Inc (PPE).

PPE is designing the plant in modules that will be fabricated offsite and delivered as easily transportable skids ready for final assembly at the plant location. The modular design will greatly decrease the cost and time required for construction.
Grannus press release, 12/06/2016

This modular design is not simply a cost-saving engineering choice, but a central part of the Grannus business model. Over the long-term, their intent isn’t to make and sell ammonia, but to license their ammonia plant design to others, across the globe.

The California plant isn’t just a demonstration of the new ammonia production process, but also of the modular design package: if this plant can be shipped on skids and assembled in Kern County, it can be shipped and assembled anywhere.

If the capital and operating costs are low enough, Grannus could discover a significant market for regional ammonia plants, cost-competitive with world-scale fertilizer plants and their efficiencies of scale, but significantly more fundable.

“It’s our intent to replicate the California plant design throughout the world to further reduce capital costs and to streamline lead times for delivery,” said Matthew Cox, CEO of Grannus.

Ken Reynaud, PPE’s senior vice president, said, “The Grannus project is right in our wheelhouse, serving Grannus’ desire for a modular design that can be fabricated offsite and delivered anywhere in the world on a very cost-effective basis. The benefit will be ammonia plants that can deliver product on a regional basis at costs competitive with those of world-scale facilities.”
Grannus press release, 12/06/2016

More information about the Grannus ammonia plant is in my Research Note for Kern County, CA, including details on the previous engineering partner, AMEC Foster Wheeler, and the new technology licensors, Air Liquide and Haldor-Topsoe.

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