Tag: Fortigen

Small-scale ammonia production is the next big thing

Over the last few years, world-scale ammonia plants have been built, restarted, and relocated across the US. The last of these mega-projects began operations at Freeport in Texas last month. No more new ammonia plants are currently under construction in the US, and the received industry wisdom is that no more will begin construction.

However, project developers and ammonia start-ups did not get this memo. With low natural gas prices persisting, they have not stopped announcing plans to build new plants. The difference is that the next tranche of new ammonia plants breaking ground will not be world-scale but regional-scale, with production capacities of perhaps only one tenth the industry standard. Despite using fossil feedstocks, these plants will set new efficiency and emissions standards for small-scale ammonia plants, and demonstrate novel business models that will profoundly alter the future industry landscape for sustainable ammonia technologies.

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The capital intensity of small-scale ammonia plants

The list of investment drivers for building new ammonia plants in the US over the last few years was short, beginning and ending with cheap natural gas. Markets change, however, and the investment drivers for the next generation of new ammonia plants might include low cost electrolyzers, low cost renewable power, carbon taxes, and global demand for ammonia as a carbon-free energy vector.

For this to make sense, however, ammonia needs to be produced without fossil fuel inputs. This is perfectly possible using Haber-Bosch technology with electrolyzers, but today's wind and solar power plants exist on a smaller scale than could support a standard (very big) Haber-Bosch plant. So, to produce renewable ammonia, small-scale ammonia production is essential.

This time series chart shows the capital intensity of today’s ammonia plants. Together, the data illustrate competitive advantages of alternative investment strategies, and demonstrate a shift away from the prior trend toward (and received wisdom of) monolithic mega-plants that rely on a natural gas feedstock.

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Fortigen in pre-commissioning phase; ammonia tank setback

THIS UPDATE IS ONLY AVAILABLE TO SITE MEMBERS

Construction is almost complete on Fortigen's new ammonia plant in Nebraska, and "the pre-commissioning stage is now underway,” according to local press. Unfortunately, there was a significant setback on the site at the end of May, when the ammonia storage tank was damaged, which will probably delay full operations by at least a month.

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Geneva, NE – Fortigen

UPDATED: 01/09/2018 — see Change Log

OWNER: Fortigen Geneva LLC (Tetrad Corporation)
PROJECT: Greenfield ammonia plant

SUMMARY STATUS: Commissioning Phase
Fortigen is currently commissioning the small ammonia plant it built outside Geneva, NE, to supply fertilizer to local farmers. The project broke ground in March 2016 and was expected to start-up by Fall 2017, but the schedule became delayed over the summer, when the storage tank was damaged during testing, due to "human error." There is already talk of expanding the site, to add urea and DEF production.

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