Ammonia
Overview
The ammonia market is undergoing a period of rapid and dramatic change. Conventional or ‘grey’ ammonia is traditionally produced almost exclusively for its nitrogen content. However, the urgent need to decarbonise the global economy and meet ambitious zero-carbon goals has opened up exciting new opportunities.
Ammonia has the potential to be the most cost-effective and practical ‘zero-carbon’ energy carrier in the form of hydrogen to the energy and fuels sectors. This has led to rapid growth of interest in clean ammonia and a flurry of new ‘green’ and ‘blue’ ammonia projects.
Argus has many decades of experience covering the ammonia market. We incorporate our multi-commodity market expertise in energy, marine fuels, the transition to net zero and hydrogen to provide existing market participants and new entrants with the full market narrative.
Our industry-leading price assessments, powerful data, vital analysis and robust outlooks will support you through:
- Ammonia price assessments (daily and weekly), some of which are basis for Argus ammonia futures contracts, Ammonia forward curve data and clean ammonia cost assessments and modelled weekly prices
- Short and medium to long-term forecasting, modelling and analysis of conventional and clean ammonia prices, supply, demand, trade and projects
- Bespoke consulting project support
Latest ammonia news
Browse the latest market moving news on the global ammonia industry.
Nutrien lowers 2024 nitrogen sales guidance
Nutrien lowers 2024 nitrogen sales guidance
Houston, 7 November (Argus) — Major fertilizer producer Nutrien lowered its 2024 nitrogen sales guidance following extended turnarounds and unplanned outages in the third quarter. Nutrien reduced its expected sales of nitrogen products in 2024 by 200,000 metric tonnes (t) to 10.6mn t, the company said in its third quarter earnings report. Nutrien's Port Saskatchewan facility in Alberta suffered from a power outage during the period causing unexpected downtime, Nutrien said. The producer's Augusta, Georgia , and Geismar, Louisiana , plants experienced brief outages following hurricanes in the US Gulf coast in September. Nutrien's Trinidad nitrogen facility wrapped up a turnaround in the third quarter, Nutrien said. And the producer's Lima, Ohio, plant also underwent a turnaround from August into September, according to sources. Third quarter nitrogen sales increased by 2.8pc from a year ago to 2.45mn t despite outages at its plants. But Nutrien estimated US nitrogen inventories to be "well-below average levels" at the end of the third quarter, which the company expects to support demand in the coming months. Nitrogen markets have been supported by tightness in global supplies, with the company pointing towards supply disruptions, delays of new capacity, and rising European natural gas prices. China's restrictions on urea exports and production challenges elsewhere have firmed nitrogen markets as well, Nutrien said. On the demand side, urea consumption in China has grown 14pc annually, bringing consumption there to 60mn t as the government focuses on domestic agricultural production, Nutrien said. In the US, crop margins have declined compared to recent years on lower crop prices and higher costs, but below-normal grain stocks globally should support US agricultural markets, Nutrien said. The company said it expects strong fall nitrogen demand following significant nutrient depletion and an early harvest. By Calder Jett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
European firms get ‘Moroccan Offer’ for green NH3
European firms get ‘Moroccan Offer’ for green NH3
London, 29 October (Argus) — A group of three European companies has been selected for the first land allocation under the "Moroccan Offer" and intends to produce 200,000 t/yr of renewable ammonia for the European market in a first stage. France's TE H2, a joint venture between TotalEnergies and renewables developer Eren, has joined forces with Danish firms Copenhagen Infrastructure Partners (CIP) and A P Moller to develop the so-called Chbika project in the Guelmim-Oued Noun region on Morocco's Atlantic coast. They are planning to use 1GW of combined solar photovoltaic and wind power in the first phase for electrolysis of desalinated seawater to make hydrogen that will then be converted into ammonia. Production of 200,000 t/yr of ammonia could require some 35,000 t/yr of hydrogen. CIP and TE H2 will oversee development of power generation assets, hydrogen and ammonia plants, and A P Moller will develop a port in the area and associated logistics infrastructure. "This project will constitute the first phase of a development program aimed at creating a world-scale green hydrogen production hub," CIP said, suggesting that the companies could scale up operations at a later stage. The partners have signed a "preliminary contract for land reservation" with the government, CIP said, adding that this is "the first green hydrogen project" selected under the framework of the Moroccan Offer through which Rabat seeks to allocate land rights to project developers and to offer streamlined permitting procedures. The companies have not outlined a timeline for their project, but under the Moroccan Offer's framework they would have around two years to complete front-end engineering design (FEED) studies, before then signing a long-term land agreement. Through this first phase of the Moroccan Offer, Rabat is planning to make 300,000 hectares (ha) of government land available to 10-30 projects. As of early this month, the Moroccan Agency for Solar Energy (Masen), which is leading the process, had received some 40 applications for review. Masen was initially due to announce the first selections by the end of the third quarter. TotalEnergies previously already announced plans for renewable hydrogen production in Morocco, but it was not immediately clear if this joint project with CIP and A P Moller is related to these earlier ventures. Many large renewable hydrogen and ammonia projects are planned across Morocco as developers are hoping to capitalise on favourable renewable power conditions, but all are still in early planning stages. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IRM, Atlas reach green nitrogen offtake agreement
IRM, Atlas reach green nitrogen offtake agreement
Houston, 23 October (Argus) — Green nitrogen fertilizer startup Atlas Agro secured an offtake agreement from its plant in Richland, Washington, with major fertilizer distributor International Raw Materials (IRM) IRM will distribute green nitrogen fertilizer from the Pacific Green Fertilizer (PGF) plant in Richland to farmers across the Pacific Northwest. Which nitrogen products and the volumes agreed to were not specified by Atlas, but the company will produce several fertilizer products with its green ammonia, including calcium ammonium nitrate and ammonium nitrate. The Richland plant finished its front-end engineering design (FEED) and is expected to complete its final investment decision in early 2025. PGF is anticipated to produce 700,000 tons of green nitrogen fertilizer for farmers in the Pacific Northwest. Distributing green nitrogen fertilizer aligns with IRM's "agricultural sustainability" plan, and increasing demand from consumers to reduce Scope 3 emissions across the food supply chain, said IRM president Tip O'Neill. PGF is also involved with the Pacific Northwest Hydrogen Hub program which is funded by the US Department of Energy. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Origin to exit Hunter Valley Hydrogen Hub
Australia’s Origin to exit Hunter Valley Hydrogen Hub
Sydney, 3 October (Argus) — Australian utility and upstream firm Origin Energy has decided not to proceed with its planned hydrogen development project, the Hunter Valley Hydrogen Hub (HVHH), in Australia's New South Wales. The decision to withdraw from the proposed 55MW HVHH and halt all hydrogen opportunities was made because of continuing uncertainty about the pace and timing of hydrogen market development, Origin said. The firm said the capital-intensive project, intended to progressively replace gas as a feedstock in a nearby ammonia manufacturing plant, carried substantial risks. Origin Energy had an initial agreement with Australian chemicals and explosives company Orica to take 80pc of the green hydrogen produced from the hub for Orica's 360,000 t/yr ammonia facility on Kooragang Island, near the city of Newcastle. Origin Energy and Orica in 2022 said they will study plans to develop the HHVH in Hunter Valley region of NSW, which is Australia's largest thermal coal-producing area. "It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome. The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," said chief executive Frank Calabria on 3 October. Origin had planned to make a final investment decision on the project by late 2024. The hub, which was estimated to cost A$207.6mn ($143mn), had been allocated A$115mn in state and federal funding and was shortlisted for production credits under Canberra's Hydrogen Headstart programme. In July, Origin described the pace of development in the hydrogen industry as "slower than it had anticipated 12 months ago", said. The company expressed hopes that improved electrolysis efficiency would reduce the rising costs of production. The decision is a significant setback for Australia's green hydrogen ambitions, following the July decision by Australian miner and energy company Fortescue to postpone its target of 15mn t/yr green hydrogen output by 2030. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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