Trends in Nitrogen Fertilizer Industries from a Contractor's View
Trends in Nitrogen Fertilizer Industries from a Contractor's View
Trends in Nitrogen Fertilizer Industries from a Contractor's View
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April 11-13, 2011<br />
Cairo Marriott Hotel, Egypt<br />
<strong>Trends</strong> <strong>in</strong> <strong>Nitrogen</strong> <strong>Fertilizer</strong> <strong>Industries</strong><br />
<strong>from</strong> a Contractor‘s <strong>View</strong><br />
Dr. Richard Saure<br />
Dep. Head and VP Sales of Ammonia and Urea Division<br />
Uhde<br />
Germany
<strong>Trends</strong> <strong>in</strong> <strong>Nitrogen</strong> <strong>Fertilizer</strong> <strong>Industries</strong><br />
<strong>from</strong> a Contractor‘s view<br />
Dr. Richard Saure<br />
Dep. Head and VP Sales of Ammonia and Urea Division<br />
Topics<br />
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Introduction<br />
Size of Ammonia Units<br />
Efficiency<br />
Alternate Feedstock<br />
Upgrad<strong>in</strong>g<br />
ID101<br />
ID103<br />
1
Uhde: Facts and figures<br />
History<br />
1921 Friedrich Uhde eng<strong>in</strong>eer<strong>in</strong>g firm, Dortmund<br />
1952 Friedrich Uhde GmbH becomes a subsidiary of Hoechst AG<br />
1996 Acquisition of Uhde GmbH by Fried. Krupp AG Hoesch-Krupp<br />
1997 Uhde and Krupp Koppers merge to form Krupp Uhde GmbH<br />
1999 Krupp and Thyssen merge to form ThyssenKrupp AG<br />
2002 Name changes back to Uhde GmbH<br />
Bus<strong>in</strong>ess year 2009/2010 (Uhde group)<br />
Order <strong>in</strong>take €1,496.9m<br />
Net sales €1,449.7m *<br />
Equity capital €554.8m *<br />
Workforce<br />
Uhde group (total) ~4,500<br />
- of which Uhde GmbH ~1,570<br />
Eng<strong>in</strong>eer<strong>in</strong>g approx. 6.1 million<br />
capacity eng<strong>in</strong>eer<strong>in</strong>g hours/year<br />
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Overview of our Product divisions<br />
World<br />
Europe<br />
2,500<br />
GGermany 22,000 000<br />
4,500<br />
* acc. to IFRS<br />
Ammonia & Urea Hydrogen & Nitrates Electrolysis<br />
Ref<strong>in</strong><strong>in</strong>g Technologies<br />
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Gas Technologies<br />
Org. Chemicals/Polymers<br />
Coke Plant Technologies Contract<strong>in</strong>g<br />
Polyester<br />
ID144<br />
2
Uhde’s Market Share and Location of Uhde Ammonia and Urea Plants<br />
Basis Market share: EPC / EP contracts received for new plants <strong>in</strong> the last 10 years, weighted by plant capacity, Status Mid 2010<br />
Basis Map: Plants built by Uhde <strong>in</strong> the last 30 years<br />
Ammonia<br />
Ch<strong>in</strong>ese<br />
others<br />
Contractors<br />
(L<strong>in</strong>de,<br />
outside Ch<strong>in</strong>a 4%<br />
Technip,<br />
Laval<strong>in</strong>,<br />
Casale)<br />
10%<br />
Uhde 26%<br />
Ch<strong>in</strong>ese<br />
Contractors<br />
1) <strong>in</strong> Ch<strong>in</strong>a 15%<br />
KBR /<br />
Ferrostaal /<br />
Kawasaki /<br />
Iranian Contractors <strong>in</strong> Iran 5%<br />
Chiyoda / Toyo<br />
18%<br />
Saipem / MHI 22%<br />
1) Market volume <strong>in</strong> Ch<strong>in</strong>a may be <strong>in</strong>complete<br />
only actual EP or EPC contracts, no awards<br />
of LOI or PDP<br />
Urea<br />
others (Technip, Casale,<br />
Chemoprojekt) 5%<br />
Ferrostaal, Toyo 10%<br />
Ch<strong>in</strong>ese Contractors outside<br />
Ch<strong>in</strong>a 6%<br />
1) Market volume <strong>in</strong> Ch<strong>in</strong>a may be <strong>in</strong>complete<br />
Only actual EP/EPC, no LOI / PDP / BE<br />
contracts<br />
Iranian Contractors <strong>in</strong> Iran 6%<br />
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Ch<strong>in</strong>ese<br />
1)<br />
Contractors<br />
<strong>in</strong> Ch<strong>in</strong>a 9%<br />
Saipem / MHI 26%<br />
<strong>Fertilizer</strong> Demand<br />
Global <strong>Trends</strong><br />
Uhde 29%<br />
KBR /<br />
Kawasaki /<br />
Chiyoda<br />
9%<br />
Increas<strong>in</strong>g Population -> <strong>in</strong>creas<strong>in</strong>g Food<br />
Production req,<br />
Increas<strong>in</strong>g Wealth -> <strong>in</strong>creas<strong>in</strong>g Meat<br />
Consumption<br />
Production of 1 kg Meat requires<br />
7-16 kg Gra<strong>in</strong> or Soy<br />
Loss of Arable Land<br />
R. Saure Jul 2010<br />
RSaureJul2010<br />
World Population<br />
[Billion]<br />
10<br />
8<br />
6<br />
4<br />
2<br />
2008: 6,7 Bn<br />
2050: ~ 9,2 Bn<br />
0<br />
1900 1950 2000 2050<br />
Source:United Nations, World Population Prospects<br />
Soil Erosion World Meat Production<br />
Agricultural Land With Strong Man-Made Erosion<br />
Other Land With Strong Man-Made Erosion<br />
Other Agricultural Land<br />
[Bilion toon]<br />
500<br />
400<br />
300<br />
0<br />
1950 60 70 80 90 00 2050<br />
Source:Food and Agriculture Organization of the United Nations Source:Food and Agriculture Organization of the United<br />
Nations<br />
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200<br />
100<br />
3
USD per mt FOB<br />
Urea Price <strong>in</strong> the last 10 Years<br />
500<br />
450<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
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mtpd<br />
Prilled Black Sea<br />
Granuled Arab Gulf<br />
Granuled Egypt<br />
Status Mar 2011<br />
Sep-00 Sep-02 Sep-04 Sep-06 Sep-08 Sep-10<br />
<strong>Trends</strong> <strong>in</strong> <strong>Nitrogen</strong> Industry: Ris<strong>in</strong>g Ammonia Plant Capacity<br />
(s<strong>in</strong>gle tra<strong>in</strong>)<br />
3500<br />
3000<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020<br />
Year of Commission<strong>in</strong>g<br />
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Interest <strong>in</strong><br />
+ 4000 tpd<br />
plants<br />
Data Source:<br />
<strong>Fertilizer</strong> Week<br />
4
Safco 4<br />
Customer: Saudi Basic Industres Corp. (Sabic)<br />
Location: Al Jubail, Saudi Arabia<br />
Nameplate Capacity: 3,300 mtpd Ammonia, 3,250 mtpd granuled Urea<br />
Process: Uhde (Ammonia), Stamicarbon (Urea), Uhde <strong>Fertilizer</strong> Technology<br />
(Granulation)<br />
Uhde Scope: Turn key<br />
Completion: 2006<br />
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Ma‘aden<br />
Customer: Samsung for Maaden Phosphate Company<br />
Location: Ras As Zwar, Saudi Arabia<br />
Nameplate Capacity: 3,300 mtpd<br />
Process: Uhde (Ammonia), BASF (aMDEA)<br />
Uhde Scope: Basic Eng<strong>in</strong>eer<strong>in</strong>g and Key Equipment<br />
Completion: 2011<br />
Image taken May 2010 © Uhde GmbH<br />
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5
USD / 1000 cuuft<br />
Development of Natural Gas Price<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
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U.S. Natural Gas Wellhead Price<br />
Source: EIA<br />
0<br />
1975 1980 1985 1990 1995 2000 2005 2010<br />
Natural gas and production cost<br />
Example: plant <strong>from</strong> 1980s, after energetic improvement:<br />
7.56 Gcal = 30 mBtu = 1 ton Ammonia<br />
At 1 mBTU = 4 USD,<br />
Raw Material for 1 ton ammonia cost 120 USD<br />
Revenue for 1 ton ammonia Ammonia exW is 300 USD<br />
Efficiency c e cy is s ccrucial uc a for o eco economical o ca pproduction oduct o<br />
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6
Energy Consumption of Ammonia Production<br />
Stoichiometric m<strong>in</strong>imum energy consumption: = 5 Gcal/tNH3<br />
(based on Methane as feedstock)<br />
“Perfect” plant could not work <strong>in</strong> transient conditions nor partial load<br />
Waste Heat available at low temperature can not be recovered, Cool<strong>in</strong>g System to be<br />
applied<br />
Limitations <strong>from</strong> Material of Construction<br />
(e.g. Metal Dust<strong>in</strong>g; Dew po<strong>in</strong>t <strong>in</strong> flue gas)<br />
Extra energy <strong>in</strong> product (pressure / refrigeration)<br />
Incremental <strong>in</strong>vestment <strong>in</strong> further efficiency to be balanced aga<strong>in</strong>st sav<strong>in</strong>gs <strong>in</strong> energy<br />
cost<br />
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Energy Consumption of Ammonia Production<br />
M<strong>in</strong>imum Energy Consumption<br />
<strong>Nitrogen</strong> fixation (i.e. NH3 synthesis) is most energy-<strong>in</strong>tensive process step for production of<br />
nitrogenous fertilizers such as Urea and Ammonium Nitrate<br />
Energy Consumption<br />
[Gcal/tNH3]<br />
10<br />
9<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
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EFMA (2000) – Best Available<br />
Technologies<br />
0<br />
1960 1970 1980 1990 2000 2010 2020<br />
Year of Plant Commission<strong>in</strong>g<br />
<strong>from</strong> literature<br />
plants <strong>in</strong> operation<br />
plants under construction<br />
actual energy consumption ≥ 6.7 Gcal/tNH3 gap due to<br />
- limited convertibility of rejected heat<br />
(2 nd law of thermodynamics)<br />
- extra energy <strong>in</strong> product (pressure / refrigeration)<br />
- optimization for plant economics<br />
m<strong>in</strong>imum energy consumption <strong>from</strong><br />
stoichiometric po<strong>in</strong>t of view = 5 Gcal/tNH3 (based on Methane as feedstock)<br />
LHV of Ammonia = 4.44 Gcal/t NH3<br />
7
Energy consumption of nitrogen fertilizer production<br />
Rema<strong>in</strong><strong>in</strong>g options for further reduc<strong>in</strong>g energy consumption<br />
Examples for m<strong>in</strong>or improvements:<br />
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variable speed drives where part part-load load operation is normal case<br />
m<strong>in</strong>imization of direct heat losses (stack, cool<strong>in</strong>g water) as far as<br />
possible<br />
application of most efficient mach<strong>in</strong>ery<br />
expected sav<strong>in</strong>gs: < 0.1 Gcal/t NH3<br />
start<strong>in</strong>g <strong>from</strong> built low-energy plants<br />
Energy consumption of nitrogen fertilizer production<br />
Rema<strong>in</strong><strong>in</strong>g options for further reduc<strong>in</strong>g energy consumption<br />
Most efficient energy supply:<br />
High-efficiency co-gen plant for supply of electrical power and steam or<br />
mechanical energy<br />
But: only possible if additional steam consumers are present and steam export is<br />
credited or steam reformer is replaced by non-fired reformer types<br />
Normal efficiency of steam cycle process: 30%<br />
Efficiency of comb<strong>in</strong>ed cycle: up to 60%<br />
(i.e. gas turb<strong>in</strong>e & HRSG ):<br />
expected sav<strong>in</strong>gs <strong>in</strong> Ammonia plant: some 0.25 Gcal/t NH3<br />
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8
Alternate Feedstocks:<br />
Gasification-Based Ammonia / Urea Plant<br />
Coal Petcoke Biomass<br />
Tail Gas<br />
Acid Gas<br />
Gasification CO-Shift<br />
Removal<br />
PSA<br />
Oxygen<br />
Air<br />
ASU<br />
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Gasif<br />
gasif fication feedstock Feedstock price USD / USD / D/GJ MMBTU M<br />
N 2<br />
Compression<br />
Note: Alternatively, NWU <strong>in</strong>stead of PSA<br />
7<br />
6<br />
Sulfur<br />
PRENFLO PSG PRENFLO PDQ<br />
Syngas<br />
Compression<br />
Urea Synth. +<br />
Granulation<br />
Ammonia<br />
Ammonia<br />
Synthesis<br />
CO 2<br />
Tail Gas<br />
Sulfur<br />
Recovery Refrigeration<br />
Impact of feedstock cost for natural gas vs gasification<br />
based ammonia plant<br />
5<br />
4<br />
3<br />
2<br />
1<br />
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steam reform<strong>in</strong>g more economical<br />
gasification more economical<br />
0<br />
0 2 4 6 8 10 12<br />
Nat natural Gas gas USD price / MMBTU / USD/GJ<br />
Urea<br />
Conditions:<br />
• 10 years payback time<br />
• <strong>in</strong>terest rate: 8 %pa % p.a.<br />
• 3300 mtpd ammonia<br />
Example 1:<br />
gas: 7 USD/MMBTU;<br />
coal: 2.5 USD/MMBTU:<br />
gasification favourable<br />
Example 2:<br />
Parity y at:<br />
gas: 4 USD/MMBTU;<br />
coal: 2 USD/MMBTU<br />
9
Impact of Transportation Cost<br />
Previous cost comparison assumes that both plants (steam reform<strong>in</strong>g and<br />
gasification) are located at the same location<br />
Some coal reserves are closer to the consumers than gas reserves with low<br />
production cost different transport costs<br />
-> Improvement of the model<br />
Coal available<br />
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Gasific<br />
gasi cation ification Feedstock feedstock USD price / MMBTU M/<br />
USD/GJ<br />
7<br />
6<br />
Fertiliser Consumers<br />
Impact of Feedstock Cost Includ<strong>in</strong>g Transportation<br />
5<br />
4<br />
3<br />
2<br />
1<br />
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PRENFLO PSG PRENFLO PDQ<br />
steam reform<strong>in</strong>g + transport<br />
of product more economical<br />
gasification more economical<br />
0<br />
0 2 4 6 8 10 12<br />
Nat natural Gas gas USD price / MMBTU / USD/GJ<br />
Natural gas<br />
available<br />
Conditions:<br />
• 10 years payback time<br />
• <strong>in</strong>terest rate: 8 % p.a.<br />
• 3300 mtpd ammonia,<br />
fully converted to 5800<br />
mtpd urea<br />
• Transport cost of 20<br />
USD / t urea added to<br />
natural-gas based plant<br />
Example: Parity now at:<br />
gas: 4 USD/MMBTU;<br />
coal: 2.5 USD/MMBTU<br />
10
Built Gasification Plants<br />
Koppers-Totzek gasification plant<br />
Ramagundam, India, 1986<br />
900 t/d of ammonia<br />
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Properties and Advantages of UAN solutions<br />
Properties<br />
State: liquid, q colourless<br />
N-content: 28% to 32%<br />
Composition: 45 : 35 : 20 (32%N)<br />
(AN:U:H2O) 40 : 30 : 30 (28%N)<br />
Salt out: - 2 °C (32%N)<br />
- 18°C (28%N)<br />
pH: 7 - 7.5<br />
Safety status: very safe<br />
Application: very easy<br />
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Koppers-Totzek gasification plant<br />
Modderfonte<strong>in</strong>, South Africa, 1975<br />
1,000 t/d of ammonia<br />
nitrate N<br />
(25% of total)<br />
ammoniacal N<br />
(25% of total)<br />
amid N<br />
(50% of total)<br />
fast<br />
Time for<br />
conversion <strong>in</strong><br />
the soil and<br />
crop reception<br />
slow<br />
Secondary nutrients (e.g. sulphur) and micro-nutrients (e.g. boron) can be added.<br />
11
Environmental advantages of UAN solution<br />
no dust at production site<br />
no dust <strong>in</strong> application<br />
safe storage and transport (though conta<strong>in</strong><strong>in</strong>g ammonium nitrate)<br />
Application with irrigation systems possible<br />
High Specific Nutrient Content<br />
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<strong>Nitrogen</strong> density: ~ 420 kg N / m³ (for UAN-32)<br />
Bulk urea: ~ 350 kg N / m³<br />
<strong>Trends</strong> <strong>in</strong> <strong>Nitrogen</strong> Industry: Liquid <strong>Fertilizer</strong> UAN<br />
AUM Tr<strong>in</strong>idad<br />
Customer: Ferrostaal for MHTL / Proman<br />
Location: Po<strong>in</strong>t Lisas, Tr<strong>in</strong>idad<br />
Capacity: 4,300 mtpd UAN-32<br />
Process: Uhde (Nitric Acid, Ammonium Nitrate, UAN Mix<strong>in</strong>g)<br />
Feed: Urea, Ammonia (new plants by others)<br />
Uhde Scope: Basic Eng<strong>in</strong>eer<strong>in</strong>g and Key Equipment<br />
Completion: 2010<br />
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12
UAN Complex Block Diagram<br />
(<strong>in</strong>dependent process Units)<br />
Natural<br />
Gas<br />
Water<br />
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NH 3<br />
NH 3<br />
CO 2<br />
NH 3<br />
NH 3<br />
UREA<br />
HNO 3 AN UAN<br />
UAN Complex Block Diagram<br />
(partly <strong>in</strong>tegrated Units)<br />
Natural<br />
Gas<br />
Water<br />
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NH 3<br />
NH 3<br />
CO 2<br />
NH 3<br />
UREA<br />
Offgas<br />
with NH 3<br />
HNO 3 AN UAN<br />
Urea+<br />
Water<br />
Urea+<br />
Water<br />
CO 2<br />
UAN<br />
Product<br />
CO 2<br />
UAN<br />
Product<br />
13
NH 3<br />
CO 2<br />
Air<br />
Pool reactor<br />
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NH 3<br />
CO 2<br />
Air<br />
To granulation<br />
Pool reactor<br />
H 2 Removal<br />
Steam<br />
WR<br />
S<br />
C<br />
WS<br />
Stripper<br />
Atmospheric<br />
absorber<br />
LP<br />
absorber<br />
S<br />
C<br />
Urea<br />
solution<br />
tank<br />
Condensate<br />
LP carbamate<br />
condenser<br />
WC WC<br />
NH 3 -water<br />
tank<br />
S<br />
C<br />
Rectify<strong>in</strong>g<br />
column<br />
Reflux<br />
condenser<br />
WC WC<br />
Flash<br />
tank<br />
Desorber 1+2<br />
Preevaporator<br />
Urea: Stamicarbon 2000plus TM Pool Reactor<br />
H 2 Removal<br />
S<br />
C<br />
Evaporator<br />
S<br />
C<br />
Stripper<br />
S<br />
C<br />
S<br />
C<br />
LP steam 2<br />
Clean process condensate<br />
S<br />
C<br />
LP Dissociation<br />
Heater / Separator<br />
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1<br />
Offgas to<br />
AN unit<br />
Urea to UAN<br />
mix<strong>in</strong>g<br />
Hydrolizer<br />
heat<br />
exchanger<br />
Flash tank<br />
condenser<br />
WS WR<br />
Hydroliser<br />
MP<br />
steam<br />
14
Summary: <strong>Trends</strong> <strong>in</strong> <strong>Nitrogen</strong> <strong>Fertilizer</strong> <strong>Industries</strong><br />
Larger Plants<br />
More efficient plants<br />
Alternate Feedstocks<br />
Upgrad<strong>in</strong>g technologies<br />
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Dr. Richard Saure<br />
Richard.Saure@Thyssenkrupp.com<br />
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Thank You<br />
15
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