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April 11-13, 2011 Cairo Marriott Hotel, Egypt

Trends in Nitrogen Fertilizer Industries from a Contractor‘s View

Dr. Richard Saure Dep. Head and VP Sales of Ammonia and Urea Division Uhde

Germany


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Trends in Nitrogen Fertilizer Industries from a Contractor‘s view Dr. Richard Saure Dep. Head and VP Sales of Ammonia and Urea Division

ID103

Topics

Introduction Size of Ammonia Units Efficiency Alternate Feedstock Upgrading

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

1


Uhde: Facts and figures History 1921 1952 1996 1997 1999 2002

Friedrich Uhde engineering firm, Dortmund Friedrich Uhde GmbH becomes a subsidiary of Hoechst AG Acquisition of Uhde GmbH by Fried. Krupp AG Hoesch-Krupp Uhde and Krupp Koppers merge to form Krupp Uhde GmbH Krupp and Thyssen merge to form ThyssenKrupp AG Name changes back to Uhde GmbH

Business year 2009/2010 (Uhde group) 

€1,496.9m €1,449.7m *

Order intake Net sales

Equity capital

Workforce

Europe

Uhde group (total) ~4,500 - of which Uhde GmbH ~1,570

G Germany

Engineering capacity

4,500

World

€554.8m *

approx. 6.1 million engineering hours/year

2,500 2 000 2,000

* acc. to IFRS

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

ID144

Overview of our Product divisions Ammonia & Urea

Hydrogen & Nitrates

Gas Technologies

Electrolysis

Org. Chemicals/Polymers

Coke Plant Technologies

Refining Technologies

Polyester

Contracting

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Uhde’s Market Share and Location of Uhde Ammonia and Urea Plants Basis Market share: EPC / EP contracts received for new plants in the last 10 years, weighted by plant capacity, Status Mid 2010 Basis Map: Plants built by Uhde in the last 30 years

AmmoniaChinese

others (Linde, Technip, Lavalin, Casale) 10%

Contractors outside China 4%

Chinese Contractors in China1) 15%

Iranian Contractors in Iran 5% Saipem / MHI 22%

Uhde 26%

KBR / Ferrostaal / Kawasaki / Chiyoda / Toyo 18%

1) Market volume in China may be incomplete

only actual EP or EPC contracts, no awards of LOI or PDP

R. Saure Jul 2010

others (Technip, Casale, Chemoprojekt) 5%

Urea Ferrostaal, Toyo 10%

Chinese Contractors outside China 6%

Uhde 29%

Chinese 1) Contractors in China 9% 1) Market volume in China may be incomplete

Iranian Contractors in Iran 6%

Saipem / MHI 26%

KBR / Kawasaki / Chiyoda 9%

Only actual EP/EPC, no LOI / PDP / BE contracts

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

R Saure Jul 2010

Fertilizer Demand Global Trends

World Population

Increasing Population -> increasing Food Production req,

10

[Billion]

Increasing Wealth -> increasing Meat Consumption Production of 1 kg Meat requires 7-16 kg Grain or Soy 

2050: ~ 9,2 Bn

8

2008: 6,7 Bn

6 4 2

Loss of Arable Land

0 1900

1950

2000

2050

Source:United Nations, World Population Prospects

Soil Erosion

World Meat Production

Agricultural Land With Strong Man-Made Erosion

500

Other Land With Strong Man-Made Erosion

400 [Bilion to on]

Other Agricultural Land

300 200 100 0 1950

Source:Food and Agriculture Organization of the United Nations

60

70

80

90

00

2050

Source:Food and Agriculture Organization of the United Nations

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

3


Urea Price in the last 10 Years 500 450

Prilled Black Sea Granuled Arab Gulf Granuled Egypt

USD per m t FO B

400 350 300 250 200 150

Data Source: Fertilizer Week

100 Status Mar 2011

50 0 Sep-00

Sep-02

Sep-04

Sep-06

Sep-08

Sep-10

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Trends in Nitrogen Industry: Rising Ammonia Plant Capacity (single train) 3500

Interest in + 4000 tpd plants

3000

mtpd

2500 2000 1500 1000 500 0 1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

Year of Commissioning AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Safco 4 Customer: Saudi Basic Industres Corp. (Sabic) Location: Al Jubail, Saudi Arabia Nameplate Capacity: 3,300 mtpd Ammonia, 3,250 mtpd granuled Urea Process: Uhde (Ammonia), Stamicarbon (Urea), Uhde Fertilizer Technology (Granulation) Uhde Scope: Turn key Completion: 2006

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Ma‘aden Customer: Location: Nameplate Capacity: Process: Uhde Scope: Completion:

Samsung for Maaden Phosphate Company Ras As Zwar, Saudi Arabia 3,300 mtpd Uhde (Ammonia), BASF (aMDEA) Basic Engineering and Key Equipment 2011

Image taken May 2010 © Uhde GmbH AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Development of Natural Gas Price 12 U.S. Natural Gas Wellhead Price

USD / 1000 cu uft

10 8 6 4 2 Source: EIA

0 1975

1980

1985

1990

1995

2000

2005

2010

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Natural gas and production cost

Example: plant from 1980s, after energetic improvement: 7.56 Gcal = 30 mBtu = 1 ton Ammonia At 1 mBTU = 4 USD, Raw Material for 1 ton ammonia cost 120 USD Revenue for 1 ton ammonia Ammonia exW is 300 USD c e cy is s ccrucial uc a for o eco economical o ca p production oduct o Efficiency

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Energy Consumption of Ammonia Production Stoichiometric minimum energy consumption: = 5 Gcal/tNH3 (based on Methane as feedstock) “Perfect” plant could not work in transient conditions nor partial load Waste Heat available at low temperature can not be recovered, Cooling System to be applied Limitations from Material of Construction (e.g. Metal Dusting; Dew point in flue gas) Extra energy in product (pressure / refrigeration) Incremental investment in further efficiency to be balanced against savings in energy cost

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Energy Consumption of Ammonia Production Minimum Energy Consumption Nitrogen fixation (i.e. NH3 synthesis) is most energy-intensive process step for production of nitrogenous fertilizers such as Urea and Ammonium Nitrate  from literature  plants in operation  plants under construction actual energy consumption ≥ 6.7 Gcal/tNH3

10 9

7

[Gcal/tNH3]

Energy Consumption

8

EFMA (2000) – Best Available Technologies

gap due to - limited convertibility of rejected heat

6

(2nd law of thermodynamics)

5

- extra energy in product (pressure / refrigeration) - optimization for plant economics

4 3

minimum energy consumption from stoichiometric point of view = 5 Gcal/tNH3 (based on Methane as feedstock)

2 1 0 1960

1970

1980

1990

2000

2010

2020

LHV of Ammonia = 4.44 Gcal/tNH3

Year of Plant Commissioning

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Energy consumption of nitrogen fertilizer production Remaining options for further reducing energy consumption

Examples for minor improvements: 

variable speed drives where part part-load load operation is normal case minimization of direct heat losses (stack, cooling water) as far as possible application of most efficient machinery

expected savings:

< 0.1 Gcal/tNH3 starting from built low-energy plants

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Energy consumption of nitrogen fertilizer production Remaining options for further reducing energy consumption

Most efficient energy supply: High-efficiency co-gen plant for supply of electrical power and steam or mechanical energy But: only possible if additional steam consumers are present and steam export is credited or steam reformer is replaced by non-fired reformer types 

Normal efficiency of steam cycle process:

Efficiency of combined cycle: (i.e. gas turbine & HRSG ):

expected savings in Ammonia plant:

30% up to 60%

some 0.25 Gcal/tNH3

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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Alternate Feedstocks: Gasification-Based Ammonia / Urea Plant Coal Petcoke Biomass CO2 Tail Gas

Gasification

Acid Gas Removal

CO-Shift

Urea Synth. + Granulation

PSA

Urea

Tail Gas Ammonia

Oxygen

Syngas Compression

N2 Compression

ASU

Ammonia Synthesis

Air Sulfur

Sulfur Recovery

Refrigeration

Note: Alternatively, NWU instead of PSA AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Gasif Feedstock USD / D/GJ MMBTU M gasiffication fication feedstock price / USD

Impact of feedstock cost for natural gas vs gasification based ammonia plant 7 PRENFLO PSG

PRENFLO PDQ

Conditions: • 10 years payback time • interest rate: 8 % p p.a. a • 3300 mtpd ammonia

6 5 4

Example 1: gas: 7 USD/MMBTU; coal: 2.5 USD/MMBTU: gasification favourable

steam reforming more economical

3 gasification more economical

2 1

Example 2: Parity y at: gas: 4 USD/MMBTU; coal: 2 USD/MMBTU

0 0

2

4

6

8

10

12

/ USD/GJ Natnatural Gas gas USDprice / MMBTU AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

9


Impact of Transportation Cost Previous cost comparison assumes that both plants (steam reforming and gasification) are located at the same location Some coal reserves are closer to the consumers than gas reserves with low production cost  different transport costs -> Improvement of the model

Natural gas available

Coal available Fertiliser Consumers

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Impact of Feedstock Cost Including Transportation Conditions: • 10 years payback time • interest rate: 8 % p.a. • 3300 mtpd ammonia, fully converted to 5800 mtpd urea • Transport cost of 20 USD / t urea added to natural-gas based plant

Gasific Feedstock MMBTU gasication ification feedstockUSD price/ M / U S D /GJ

7 PRENFLO PSG

PRENFLO PDQ

6 steam reforming + transport of product more economical

5 4

Example: Parity now at: gas: 4 USD/MMBTU; coal: 2.5 USD/MMBTU

3 gasification more economical

2 1 0 0

2

4

6

8

10

12

price / USD/GJ Natnatural Gas gas USD / MMBTU AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

10


Built Gasification Plants Koppers-Totzek gasification plant Ramagundam, India, 1986 900 t/d of ammonia

Koppers-Totzek gasification plant Modderfontein, South Africa, 1975 1,000 t/d of ammonia

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Properties and Advantages of UAN solutions

nitrate N (25% of total)

Properties State:

liquid, q colourless

N-content:

28% to 32%

Composition: 45 : 35 : 20 (32%N) (AN:U:H2O) 40 : 30 : 30 (28%N) Salt out: pH:

- 2 째C - 18째C

(32%N) (28%N)

7 - 7.5

Safety status: very safe Application:

ammoniacal N (25% of total)

fast

Time for conversion in the soil and crop reception

amid N (50% of total)

very easy slow

Secondary nutrients (e.g. sulphur) and micro-nutrients (e.g. boron) can be added. AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

11


Environmental advantages of UAN solution no dust at production site no dust in application safe storage and transport (though containing ammonium nitrate) Application with irrigation systems possible

High Specific Nutrient Content Nitrogen density: ~ 420 kg N / m続 (for UAN-32) Bulk urea: ~ 350 kg N / m続 AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Trends in Nitrogen Industry: Liquid Fertilizer UAN AUM Trinidad Customer: Location: Capacity: Process: Feed: Uhde Scope: Completion:

Ferrostaal for MHTL / Proman Point Lisas, Trinidad 4,300 mtpd UAN-32 Uhde (Nitric Acid, Ammonium Nitrate, UAN Mixing) Urea, Ammonia (new plants by others) Basic Engineering and Key Equipment 2010

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

12


UAN Complex Block Diagram (independent process Units)

CO2 Natural Gas

NH3 NH3

CO2 NH3

UREA Urea+ Water

NH3

UAN Product

HNO3

AN

UAN

Water AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

UAN Complex Block Diagram (partly integrated Units)

CO2 Natural Gas

NH3 NH3

CO2 NH3

UREA Offgas with NH3

Urea+ Water UAN Product

HNO3

AN

UAN

Water AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

13


LP absorber

Condensate

Flash tank condenser Flash tank

Preevaporator

WS

WR

LP carbamate condenser

Pool reactor

WC

S C

WC

S

S

C

C Rectifying column

S Stripper NH3

C

CO2 Air

H2 Removal

Atmospheric absorber

WC

WC Hydroliser

Steam Reflux condenser WR

1

WS Desorber 1+2

LP steam Evaporator

S

Urea solution tank

C

MP steam

2

Clean process condensate

Hydrolizer heat exchanger

NH3 - water tank

To granulation

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Urea: Stamicarbon 2000plusTM Pool Reactor

Offgas to AN unit Pool reactor S

S C

C

NH3 CO2 Air

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Urea to UAN mixing

S Stripper

C LP Dissociation Heater / Separator

H2 Removal

Urea plant for integrated UAN production

14


Summary: Trends in Nitrogen Fertilizer Industries

Larger Plants More efficient plants Alternate Feedstocks Upgrading technologies

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

Thank You

Richard.Saure@Thyssenkrupp.com

AFA Annual Conference Cairo, April 2011 Dr. Richard Saure

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