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China eyes green ammonia exports by late 2024

  • : Fertilizers, Hydrogen
  • 23/03/30

While new clean ammonia projects are being regularly confirmed in Australia, Europe, the Americas, India and the Middle East, news on green ammonia projects in China has been noticeably absent until recently. But the country's technological prominence, the large land mass it has available to develop renewable power on, and its reputation for constructing projects quickly, may see China becoming a leading exporter of green ammonia, starting as early as the fourth quarter of 2024.

According to information obtained by Argus, Chinese merchant clean ammonia capacity is due to increase sharply within a matter of months, with 40 green ammonia projects reported to be in the development and pre-approval stages. The country is seemingly leapfrogging the blue ammonia approach being favoured by some other nations in Europe and the Middle East, and investing instead in large-scale green ammonia research and construction projects. One plant in the north of China, owned by Envision Energy, has a 20,000 t/yr green ammonia plant currently under construction, which will be followed by a ramp-up to 300,000 t/yr. Industry sources said that the plant, which will run on wind power and is located in Inner Mongolia, could be ready to start exporting green ammonia by late 2024. The Inner Mongolia region has increasingly become the focus for hydrogen and ammonia facilities run on renewable energy over recent months.

In the past month alone, several large-scale renewable green ammonia plants have been announced in China. State-owned China State Shipbuilding (CSSC) and Inner Mongolia's Tong Liao city government signed an agreement to produce green hydrogen and ammonia using 500MW of wind power. And last week, state-owned energy firm China Energy Engineering outlined plans for a $1.5bn renewable hydrogen, ammonia and methanol plant in northeast China.

Tsinghua Straits Research Institute is conducting feasibility studies into renewable hydrogen and its feed products, including green methanol, green ammonia and biomass fuels, it told Argus.

Investment is also being directed into port infrastructures to support a potential expansion of ammonia exports. Fujian Yongrong is constructing a 20,000m³ ammonia tank in Yuexiu Port, Fujian province, while Shanghai ICT Developer Energy Technology is constructing five ammonia tanks with a total capacity of 300,000m³ in Yancheng Port, Jiangsu province. Meanwhile in China's biggest ammonia port, Zhanjiang MIC Chemenergy plans to expand its ammonia storage capacity in Zhanjiang Port from 600,000 t/yr at present, to 1mn t/yr in 2025 and 1.5mn t/yr in 2030.

But the higher price of renewable ammonia compared with grey ammonia leaves questions about potential export demand in the short term. At prevailing electricity prices of around 0.3 yuan/kWh, green ammonia production costs are Yn2,829/t ($410/t) according to estimates given by State Power Investment (Spic) at a recent industry conference. Transportation costs to ports and trader margins could add a further $100/t to this cost, bringing realistic export prices for green ammonia from China to above $500/t. While conventional grey ammonia cfr prices in the east Asia region have been sharply above $500/t for much of 2022 and early 2023, the region's import prices have been dropping rapidly this month and are now trading in a $355-385/t cfr range on a spot basis. The commitment to these green projects could be tested over the coming months as a result.


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24/08/30

South Korea to require use of SAF for flights from 2027

South Korea to require use of SAF for flights from 2027

Singapore, 30 August (Argus) — South Korea said it plans to require all international flights departing from its airports to use a mix of 1pc sustainable aviation fuel (SAF) from 2027. This comes as more countries are adopting SAF mandates in accordance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Singapore earlier this year announced a 1pc SAF blending mandate from 2026 , with plans to increase to 3-5pc by 2030, subject to global developments and wider SAF availability and adoption. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy' on 30 August, which includes a target for South Korea to capture 30pc of the global blended SAF export market. While not explicitly stated in the statement, some South Korean refineries expect co-processed SAF to be allowed to meet the country's mandate, sources said. This is important as the country already produces small quantities of SAF via co-processing at existing refining facilities, with three of South Korea's four domestic refineries planning to produce SAF through co-processing by the end of this year . Key strategies The ministries outlined three key strategies to achieve the SAF consumption target — gradual expansion of domestic SAF demand, ensuring a stable domestic supply capacity, and establishing a SAF-friendly legal and institutional environment. Airlines can already refuel with SAF at Korean airports, making South Korea the 20th country to do so as part of their plan to increase domestic SAF demand. The country had tested six flights using 2-4pc imported blended SAF between South Korea and Los Angeles since August 2023. An incentive system is being developed to encourage public and private adoption of SAF, with benefits such as preferential allocation of transport rights, reduced airport facility usage fees and the introduction of airline carbon mileage system for passengers and other benefits. A mid- to long-term roadmap for the gradual expansion of domestic SAF demand will be prepared in early 2025, the ministries said. The country's strategy to secure stable domestic supply capabilities includes considering investment support for domestic SAF production such as tax credits. South Korea's four domestic refineries already plan to invest 4 trillion won ($3bn) in renewable fuels, including SAF by 2030, the ministries said. The government estimates a Hydrotreated Esters and Fatty Acids (HEFA) SAF plant with a production capacity of up to 250,000 t/yr will require an investment of approximately W1 trillion. The supply-side strategy also aims to ease regulations on waste recycling to increase the availability of domestic feedstocks for SAF production. Another strategy is to diversify feedstock and SAF production technology options, with pre-testing expected later this year. The government plans to explore alternative feedstock like microalgae and production pathways such as e-SAF, with a view to developing supply chains. South Korea plans to establish a national standard, certification and testing method for SAF with preparation planned for December 2024. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Ethiopia’s EABC seeks DAP in tender


24/08/29
24/08/29

Ethiopia’s EABC seeks DAP in tender

London, 29 August (Argus) — Ethiopian Agricultural Businesses (EABC) has likely issued a tender to buy 360,000t of DAP, closing on 9 September. Sources expect EABC to issue further tenders to bring the total volume of phosphate-containing fertilizers sought to 800,000-1.36mn t for delivery in 2024-25. But it is uncertain if additional tenders will also be for DAP or for NPS/NPSB. Typically, the corporation seeks large amounts of NPS and NPSB in its annual large-scale tender, and Moroccan major fertilizer producer OCP is awarded the full volume. In its 2023 tender — issued in August — EABC requested a little over 1.02mn t of NPSB and 332,300t of NPS, as well as 980,000t of urea. But reports emerged earlier this week that EABC was preparing to seek DAP instead. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Qatar's Muntajat raises September sulphur price


24/08/29
24/08/29

Qatar's Muntajat raises September sulphur price

London, 29 August (Argus) — Qatar's state-owned sulphur producer and marketer Muntajat/Qatar Energy has raised the Qatar Sulphur Price (QSP) for September to $125/t fob Ras Laffan/Mesaieed. This is up by $19/t on its August QSP set at $106/t fob after spot prices rose. The latest spot tenders from Qatar and Kuwait have attracted several bids at $120s/t fob from trading firms. This follows a substantial rise of $25/t from July to August, when the latest round of price increases in the spot market started to filter through, as phosphate fertilizer prices firmed and some supply curbs limited output from the usual producers. The latest adjustment for September implies delivered pricing to China of $151-157/t cfr at current freight rates, which were last assessed on 22 August at $26-28/t to south China and at $30-32/t to Chinese river ports for a shipment of 30,000-35,000t. But with China cfr assessments at $134-139/t cfr on 22 August, delivered prices were below the implied range in the previous round of business, as buyers opted to wait and see what was the outlook for fertilizer exports prior to booking more raw material imports. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's NFL closes tender to buy urea, offers in


24/08/29
24/08/29

India's NFL closes tender to buy urea, offers in

Amsterdam, 29 August (Argus) — Indian fertilizer importer NFL has closed its tender to buy urea today, with initial unconfirmed feedback pointing to lowest offers at around or slightly below $340/t cfr west coast. NFL will evaluate and open technical offers on 30 August, with an expectation that prices will be officially revealed early next week. NFL has requested a shipment window from load ports up to 31 October. The lowest offer price, if confirmed, would reflect netbacks of around low-mid $320s/t fob Middle East and $280/t fob Baltic, accounting for freight rates and other costs. Indian appetite for fresh urea imports is strong, despite considerable inventories, driven by a strong monsoon. Participants expect that NFL could purchase at least 1mn t of urea under this tender. Rainfall rose by 7pc from the long-term mean since the start of June, which has buoyed domestic offtake. Urea sales to consumer could hit as high as 5mn t this month, up from 4.68mn t in August last year. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CMOC issues buy tender for sulphur to Brazil


24/08/28
24/08/28

CMOC issues buy tender for sulphur to Brazil

London, 28 August (Argus) — The Brazilian operation of Chinese metals producer and sulphur consumer CMOC issued a tender to buy 40,000 metric tonnes (t) of sulphur for late October delivery at the Santos port's Tiplam terminal. The tender closes for offers on 3 September. The buyer last awarded a tender closed on 10 July for 40,000t of sulphur to arrive in September at Santos' Termag terminal priced at $119/t cfr. Other buyers have since bought spot tonnes in a higher spot market during August for September-October arrival priced between high $130s/t and low $140s/t cfr. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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