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
ID101
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
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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
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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
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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
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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
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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
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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
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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
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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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