I'm calling it quits for one of the major nitrogen greenfields in the US.
Local newspapers reported two pieces of very interesting news at the end of last week, regarding the pipeline of proposed ammonia plants in the US.
While we wait for the current slate of new ammonia plants to start up this year, here's a reminder of the projects that are still in development across North America.
More than a dozen major ammonia plants are in various stages of planning or financing. None of these have started construction yet. Some have been stuck in limbo for years, while others keep making progress. The project pipeline represents a potential investment of over $20 billion and additional ammonia capacity of more than 9 million tons per year.
Obviously, not every project will move ahead - in fact, conventional wisdom says none will - but new trends are emerging that may influence their success or failure.
A list of the biggest projects follows below, summarizing their evolving costs, pushed-back schedules, and changing EPC contractors.
ConAgra's appeal against Magnida's air permit was denied last week - the hearing officer described it as "speculative ... based upon what appears to be little more than suspicion."
Magnida responds that it's "quite happy with the outcome."
Idaho DEQ issued the air permit to Magnida yesterday, for its greenfield plant in American Falls, ID.
They estimate total costs of $1.5 billion (although they’re still awaiting bids from KBR and Bechtel), with a capital structure of one third equity to two thirds debt. They say they already have the $500 million equity … Read more
The more I learn about Magnida, the more likely the American Falls greenfield seems. The team has been doing community relations in American Falls:
“We have $500 million in equity which gives us a great head start the previous project owners did not have,” said Magnida Chairman Ric Sorbo on Wednesday, Jan. 22 … Read more
The American Falls greenfield is dead. Long live the American Falls greenfield.
The old Southeast Idaho Energy ammonia project – a clean coal, ~600,000 ton per year greenfield – bit the dust a while back. The new Magnida ammonia project – a natural gas, 828,000 ton per year greenfield – revives the project. New business plan, new corporate entity, same people. Read more