US Fertilzer Expected to Continue on Strong Demand

Despite the recent global economic turmoil, US fertilizer industry is looking bright as corn futures prices for December 2009 delivery indicate that the upcoming seasons should be picking up demand. The corn industry is one of the largest consumer for the fertilizer industry and this will boost demand for as farmers are expected to plant corn instead of soybeans which will boost fertilizer demand.

Analysts are predicting that the fundamentals that's driving fertilizer demand remains strong coming from world growing population in developing nations.

MOPCO Took Over Agrium Fertilizer Project

After months of delay, Egypt’s MISR Oil Processing Company (MOPCO) has agreed to acquire EAgrium joint-venture fertilizer project making EAgrium a subsidiary of MOPCO. Under the new deal, Agrium would own 26% of the combined project, including MOPCO’s recently completed 675,000 tonne/year urea plant as the acquisition is based on share swapping.

The Egypt Fertlizer project worth $1.2 billion was delayed on 21 April due to local resistance with Egyptian government was rumoured to take over the whole project.

New Fertilizer JV by Ecuador-Venezuela

Ecuador and Venezuela is signing an official agreement between both energy ministers for a new fertilizer project joint-venture. This will make both coutries as the major producer of fertilizers in the region. The agreement involves a construction of 300,000 bpd refinery which is to be completed by 2013. The stakeholders are known to be Petroecuador of Ecuador 51% stake and Venezuela's PDVSA owning 49%.

Agropolychim Switching to DAP and MAP Chemical Plants

A Bulgarian fertilizer producer, Agropolychim is switching to diammonium phosphate (DAP) and monoammonium phosphate (MAP) at its Devnya plant which has a capacity of 850 tonnes/day of DAP/MAP. The chemical plants has flexibility to swing either DAP/MAP or triple superphosphate (TSP). Agropolychim produces around 25,000-27,000 tonnes/month of TSP mostly for export market.

Yara Formed Joint-Venture with NOC Fertiliser

Norway’s Yara has signed major agreements with National Oil Corp (NOC) and the Libyan Investment Authority (LIA) to form a joint venture for the production and marketing of mineral fertilizers

The JV comprise of 50% stake by Yara and remaining owned by LIA and NOC. The JV was setup to upgrade existing ammonia and urea production plants with capacity of approximately 700,000 tonnes/year of ammonia and 900,000 tonnes/year of urea located at Marsa el-Brega and additional new fertilizer plants.

Technology to Convert Waste to Fertilizer

Two Illinois companies have been awarded a $1m from United States federal grant to look into ways to produce nitrogen fertilizer from wastes.

US Department of Agriculture (USDA), is funding the research on a process derived from N-Ovation and Fluidic MicroControls, which in theory can derive nitrogen from a gas created by cooking crop residue. The gas comes from cooking farm waste, which then turned into nitric acid by introducing a spark of electricity.

The protoype is already existing and the companies are looking at efficient way and to create a machine that capable of supplying 1000 acre of farm fertilizer. This will revolutionize the way fertilizers are made which currently extensively from petrochemical plants.

Environmental Concern Grows at Egyptian Fertilizer Plant

Canada-based fertilizer producer, Agrium who owns a $1.2bn Agrium joint-venture nitrogen fertilizer plant in Egypt, is working to address concerns on the environmental impact of the chemical plant towards the nearby community at port of Damietta.

The fertilizer chemical plant is scheduled for completion in 2010 with capacity of two 1,200 tonne/day ammonia plants and two urea plants of production capacities of 1,925 tonnes/day.

Another $570 Million Investment by Russia Eurochem

200 will mark another Eurochem, a Russian fertilizer producer plan to invest $570 million to upgrade its existing production facilities and building new units including a new 50,000 tonnes/year melamine facility at Azot, Nevinnomyssk.

The chemical plant which costs $277m using Germany's Lurgi process technology, is due on-stream in 2011. Overall, Eurochem is expecting an increase in its Azot, Novomoskovsk urea capacity by 25% to 2,000 tonnes/day as part of Eurochem's vision to conquer the Russian market.

Oman and India Collaborating on Urea/Ammonia Plant

Despite their differences, India and Oman are planning to build a fertilizer plant comprising urea and ammonia plants at Sur in northeast Oman. The capacity of the facility will be able to produce 1.65m tonnes/year of urea and 248,000 tonnes/year of ammonia with total cost of the project amounting at $1bn.

Analysts puts the deal as "opportunity give-away" since the abundance of feedstock in Oman.

New Fertilizer Plant in Inner Mongolia, China

China is planning another new fertilizer plant in central Mongolia by Yunnan Yuntianhua company of China. The fertilizer facility is expected to produce 500 ktpa ammonia and 800 ktpa urea capacity with total investment cost of $480 million. The project will utilize rich coal reserves as feedstock for the plant.

The company will be a join venture between Hong Kong's Jinxin Group and Yuntianhua 51% stake. The fertilizer complex capacity will eventually be increased into 2 mil tonnes per year of ammonia and 3.2 mil tonnes of urea.