[Update: see Part 2 of the 2017 pipeline update]
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.
The first four projects, about which I’ve already written, include TopChem, which received its air permits in December (500,000 mtpy, Pollock, LA); Grannus, which announced its EPC contract and technology licensors (80,000 mtpy, Kern County, CA); Midwest Fertilizer / Fatima, which is trying to renegotiate its EPC contract following last year’s scandal at TKIS (800,000 mtpy, Mt Vernon, IN); and AM Agrigen, which may import an old, smaller plant instead of building a new world-scale one (400,000 mtpy down from 800,000 mtpy, Killona, LA).
Edgard, LA – EuroChem
EuroChem is also talking about starting construction in 2017. They recently submitted a full, revised air permit application (14 months after submitting their initial, incomplete application), for a vast nitrogen complex including two world-scale ammonia plants. EuroChem hopes to begin building Plant I this year, for completion in 2019, and then begin building Plant II, for completion in 2022. Each plant will have a capacity of 2,700 mtpd according to the permit documents. That’s roughly 800,000 tons per year each, for a total site capacity of over 3.5 million tons of nitrogen fertilizer, at a total capex of over $3.5 billion.
Following EuroChem’s discussions of global strategy and its recent acquisition of Bentrei, an established US distributor, it’s no surprise that the proposed production plant also features significant storage, handling, and loading operations for “Imported Fertilizer” and “Imported Ag Products,” with throughput of 2 million tons per year. This isn’t just an ammonia greenfield, it’s an international trading hub. I’m glad to note that it’s also preserving the nesting habitat of the resident bald eagles, as well it should.
EuroChem hasn’t announced a final investment decision on its Louisiana plant yet, but the evolution of its global strategy continues with today’s press release announcing a management change to support “EuroChem’s significant global expansion.” While awaiting its Louisiana air permit, EuroChem is busy building a world-scale ammonia plant in Russia as well as vast new operations in the other nutrients. While we await the investment decision, everything I know about the project is in my Research Note for Edgard, LA.
Tuscola, IL – Cronus
Cronus Chemicals also hopes to break ground in 2017, though they’ve hoped to break ground each year since 2014. Recent news includes extending their agreement with the local sanitation district for a guaranteed water supply, to reduce project risk “while they attempt to finalize their funding for the project.” Apparently they have “hope of securing financing in the next fews months.”
Almost a year ago, KBR and Tecnimont announced a joint venture to work as the EPC contractor on the $1.9 billion plant, which would produce 800,000 mtpy ammonia and 1,400,000 mtpy urea. The partnership was designed to “leverage strategic synergies between their respective areas of expertise,” namely ammonia and urea.
According to local press this month, Cronus is “still making progress … It’s taking longer than they expected, but … they hope to start this summer [2017] and be up and running three years later [2020].” For more, see my Research Note for Tuscola, IL.
Grand Forks, ND – Northern Plains Nitrogen
The farmers’ co-ops are still developing this project, which could cost $2.5 billion for a multitude of end products produced from 800,000 mtpy ammonia. A few weeks ago, local news quoted the CEO:
The project is so good, and it is so necessary in the area, in the market that we plan to serve, that we are just bound and determined to pursue the financing until it’s successful … we have a strong board in place, and we continue to work diligently …
The fertilizer business is very volatile and very cyclical … Though we’ve had the permitting in place for more than a year — maybe a couple of years — the price of fertilizer over the past couple of years has dropped rather significantly.
Don Pottinger, CEO Northern Plains Nitrogen, 01/27/2017
For once, this is a company that doesn’t claim to be able to break ground imminently. As far as I’m aware, NPN still needs to complete its FEED study, which may take until late 2017, and award an EPC contract. It also needs to secure financing. Progress may be slow but they’re not giving up yet. See more in the Research Note for Grand Forks, ND.
Belle Plaine, SK – FNA (ProjectN)
I’ve previously described ProjectN as my “favorite sleeper project,” by which I mean that it might look implausible on the surface but, by certain metrics, is very attractive. These Canadians aren’t even trying to build an ammonia plant: they’re building a distribution business first. The $2.2 billion ammonia-urea-UAN plant is Phase 3 of their three-phase plan.
Phase 1, for which FNA recently reached financial close, involves building a fertilizer “supercentre” at Belle Plaine, adjacent to Yara’s plant (Saskferco) and the site of its future production complex. FNA hopes to begin construction on that as soon as the weather allows, and to build more supercentres across Manitoba and Alberta “as soon as possible.”
While it may take FNA some time to prepare its business for an ammonia production plant, it is going about it in a methodical and steadfast manner. Everything I know about FNA’s greenfield is in the Research Note for Belle Plaine, SK (ProjectN).