please note that as of january 2016, growhow uk is now cf ... · please note that as of january...

Please note that as of January 2016, GrowHow UK is now CF

Fertilisers UK. This presentation was made in November 2012 prior

to this change.

GrowHow UK is now CF Fertilisers UK. This presentation was made in Nov 2012 prior to this change

GrowHow UK Ltd

Who are we ?

Why are we interested in CCS ?


Who are GrowHow UK?

• The UK’s premier fertiliser manufacturer and a major supplier of Chemicals & Utilities

• The UK’s largest AN and true granular compound fertiliser producer

• A 50:50 joint venture company between Yara International ASA and CF Industries

• 25% of business is industrial chemicals for UK, which underpins the “Nitrogen cluster” on Teesside


• Circa 600 employees

• Production capacity:– 900,000 tonnes of Ammonia – 1,300,000 tonnes Nitric Acid– 1,100,000 tonne Ammonium

Nitrate fertiliser– 530,000 tonnes NS, NPK,

NPKS compound fertilisers– Plus carbon dioxide, gas,

steam and other utilities

• GrowHow purchases 1% of the UK gas consumption

What is the size and scope of the business?


Production

• The manufacture of fertiliser involves five separate stages:

– Ammonia is formed from natural gas,air and steam

– Nitric acid is produced from ammonia and air

– The reaction between ammonia and nitric acid results in ammonium nitrate

– Ammonium nitrate solution is prilled to form the straight ammonium nitrate product

– Granulated compound NPK fertilisers are manufactured by combining ammonium nitrate, ammonium phosphate and potash, sulphur is added in the form of ammonium sulphate

• High quality chemicals from the fertiliser production process such as CO2, Nitric acid and Ammonia are sold to a wide range of industries as process chemicals

• CO2 is a by-product of ammonia manufacture


Billingham Site Overview - Production


Billingham Site Overview – Utilities Business


Agriculture and Fertiliser

Feeding the crops that feed the nation


GrowHow UK Limited

The UK market leader in:

• Straight Nitrogen fertilisers

• Nitrogen Sulphur fertilisers

• Quality NPK and NPKS true granular compounds

• Nitric acid production

• Ammonia production


A reality check – the case for fertilisers

• Fertilisers allow farmers to produce more food from each hectare of land

• Without Nitrogen fertilisers:

– Just 2.4 billion or 40% of the world’s current population could be fed at today’s average per capita food consumption levels

– Even if everyone ate the generally inadequate diet of 1900’s only around 53% could be fed


A reality check – the case for fertilisers

• Research shows that a crop of wheat grown with the optimum amount of Nitrogen fertiliser will produce up to seven times more energy than was used to make that fertiliser

• The same crop will also capture four times more CO2 from the atmosphere than was produced in the fertiliser manufacturing process


GrowHow UK and our environmental improvements• GrowHow has carried out major

Capital Investments in recent years to Reduce Environmental Emissions and Increase Energy Efficiency

• GrowHow and its predecessors have a history of continually improving energy efficiency.

• Although the company plans to continue to invest in energy efficiency projects at both sites, the scope for further large scale reductions in CO2 emissions is limited.


Recent Emissions Reduction - Billingham

• Addition of fibre filter mist eliminator and improvements to Ammonium Nitrate Production Plant

• Commissioned in 2009

• Large reduction in emissions to air and water

• Improved visual appearance

• Increased production capacity

Billingham Nitram Plant Upgrade


Recent Emissions Reduction - Billingham

• Nitric Acid plants produce Nitrous Oxide (N2O) as a byproduct. N2O is a highly potent greenhouse gas with a global warming potential ~ 300 x CO2. This is not removed in conventional DeNOx systems.

• All 3 Nitric Acid Plants fitted with N2O Abatement Systems commissioned in 2011. N2O removal efficiencies 90%->99%

• CO2 equivalent Emissions reduction 1,000,000 tonnes p.a.

• All 6 GrowHow plants < 20% of EU Benchmark emission level

Billingham Nitric Acid PlantsN2O Abatement


Recent Capital Investment - Billingham

• New Steam Turbine commissioned February 2012

• Saving of over 260 te/d HP steam

• Yielding lower gas burn in boiler of 1.0 GJ/Te @ 60p = £2.1M / yr

• CO2 emissions reduction of 25,000 tonnes p.a.

• Phase 2 Energy Efficiency project expected to save 20,000 tonnes CO2 p.a.

Billingham Ammonia PlantEnergy Efficiency Improvement Project Phase 1Synthesis Gas Compressor HP Turbine


Recent Capital Investment - Ince

Ince Ammonia PlantProcess Air Compressor

• New Compression Train commissioned April 2011

• Saving over 360 te/d IP steam on Turbine load

• Yielding lower gas burn of 1.5 GJ/Te @ 60p = £3.3M /yr

• CO2 emissions reduction 30,000 tonnes p.a.


Recent Capital Investment - Ince

• New Synthesis Converter & Catalyst successfully commissioned March 2011

• Significant reduction in ammonia synthesis loop operating pressure

• Saving over 110 te/d HP steam on Syn Gas Compressor

• Yielding lower gas burn of 0.3 GJ/Te @ 60p = £0.7M / yr

• CO2 emissions reduction 8000 tonnes p.a.

Ince Ammonia PlantSynthesis Converter Vessel & Catalyst


Why are we interested in CCS ?

• The Ammonia production Plants at Ince and Billingham are large consumers of natural gas

• Competitive glo bal fertiliser market

• The EU ETS Phase 3 benchmark for Ammonia production has been set at an unachievably low level.

• Despite European Ammonia plants being the most energy efficient in the world, and continuing investments in energy efficiency, we will not be able to achieve the benchmark level.

• GrowHow and other EU producers will therefore incur large EU ETS costs

• There is a large risk of “Carbon Leakage”, from the EU to less efficient, lower carbon cost production areas.

• CCS represents an opportunity to mitigate EU ETS costs


Lowest Carbon Fertiliser Producer ?

Billingham, “Nitram” Fertiliser

Before 2011: 1 tonne Nitrogen fertiliser produced 2.6 tonnes CO2e in manufacture

With CCS: 1 tonne Nitrogen fertiliser will produce 0.36 tonnes CO2e to manufacture

Now: 1 tonne Nitrogen fertiliser producing 1.15 tonnes CO2e in manufacture


Industrial CCS can benefit everyone in UK

• Help UK to achieve international CO2 reduction commitments

• Permanent CO2 capture can be discounted from ammonia plant emissions under the EU ETS Phase 3 (2013-2020)

• Will prevent loss of UK fertiliser industrydue to carbon taxes – safeguarding jobsand avoiding large loss to UK economy

• Will help increase the sustainability of food production

• Will reduce food inflation in the weekly shopping basket


What can we offer CCS ?

• Annual CO2 emissions from the Billingham Ammonia plant are 965,000 tonnes p.a. and Ince Ammonia Plant 680,000 tonnes p.a.

• In each case more than 2/3 of the CO2 emissions are from the plant natural gas feedstock. This CO2 is already captured and removed from the process. Our Ammonia plants are “CCS Ready”

• Other than moisture and low levels of dissolved hydrogen and nitrogen, this CO2 is of a high purity

• A portion of the captured CO2 is already sold into the Industrial Gas market or supplied to glasshouses, but the majority of the Captured CO2 is vented.

• Potential to easily remove 1,000,000 tonnes of CO2 emissions across the two production sites.


Our involvement with CCS ?

• Deployment of CCS provides a carbon solution for both power and industrial needs

• For many industrial sectors CCS is the only way to significantly reduce CO2 emissions and meet climate change targets

• GrowHow supports the development of Carbon Capture infrastructure based on industrial clusters to allow the benefits and costs of Carbon Capture and Storage to be spread to ensure rapid and effective development.

• The CO2 captured in our Ammonia plants can be readily made available to prove regional CCS networks whilst larger Carbon Capture schemes are developed.

• GrowHow actively supports the Teesside Low Carbon CCS project


Why Teesside ?

• The chemical industry is clustered in four discrete UK locations but over 50% of the UK’s chemical industry exists within Tees Valley

• A unique combination in the UK of existing industrial emitters (hydrogen, ammonia and bioethanol) who already capture CO2

• Significant potential to include other large industrial emitters

• Comprehensive pipeline networks already exist across Teesside: A CO2 network is a deliverable extension

• CCS infrastructure will provide a vital extra reason to locate a chemical/industrial investment in the UK


The Challenges for CCS

• Confirm Storage in oil/gas fields is a viable and safe long term option

• Ownership/liabilities for stored CO2 and pressurised collection systems.

• Develop technology for large scale economic recovery of CO2 from flue gases

• Develop local networks to minimise costs and maximise benefits


please note that as of january 2016, growhow uk is now cf ... · please note that as of january...

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