Ammonium Nitrates

December 2013 Report Contents

Ammonium Nitrates
Table of Contents
A Report by Nexant
Process Evaluation/Research Planning (PERP) Program
PERP Report 2013S6 Published December 2013

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Section

Page

Executive Summary .................................................................................................

1.1

PRODUCTION PROCESS AND TECHNOLOGIES ..................................

1.2

COST OF PRODUCTION ............................................................................

1.3

COMMERCIAL MARKET ANALYSIS ......................................................

Introduction ..............................................................................................................

2.1

BACKGROUND ...........................................................................................

2.2

VALUE CHAIN ............................................................................................

2.3

CURRENT USE OF AMMONIUM NITRATES .........................................

2.4

FEEDSTOCK AND UPSTREAM PROCESSES .........................................

2.5

CRYSTALLINE STATES OF PRODUCT ...................................................

2.6

TECHNOLOGY LICENSING STATUS ......................................................

Environmental and Safety Considerations ............................................................

3.1

3.2

OPERATIONAL CONSIDERATIONS ........................................................

10

3.1.1

Neutralization.....................................................................................

10

3.1.2

Concentration/Evaporation ................................................................

11

3.1.3

Solidification ......................................................................................

11

3.1.4

STORAGE AND HANDLING .........................................................

12

ENVIRONMENTAL CONSIDERATIONS .................................................

13

3.2.1

Neutralization.....................................................................................

13

3.2.2

Evaporation ........................................................................................

13

3.2.3

Solidification ......................................................................................

13

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Commercial Technologies .......................................................................................

15

4.1

NEUTRALIZATION PROCESSES..............................................................

16

4.1.1

Vacuum Neutralization ......................................................................

17

4.1.2

Atmospheric Neutralization ...............................................................

17

4.1.3

Pressure Neutralization ......................................................................

17

4.2

PIPE REACTOR NEUTRALIZATION ........................................................

19

4.3

CONCENTRATION PROCESSES...............................................................

22

4.4

SOLIDIFICATION PROCESSES .................................................................

24

4.4.1

Granulation ........................................................................................

24

4.4.2

Prilling................................................................................................

26

4.5

HANDLING AND STORAGE .....................................................................

26

4.6

AMMONIUM NITRATE PRODUCTS ........................................................

27

4.6.1

Urea Ammonium Nitrate (UAN) .......................................................

27

4.6.2

Calcium Ammonium Nitrate (CAN) .................................................

31

TECHNOLOGY LICENSORS .....................................................................

31

4.7.1

GPN....................................................................................................

32

4.7.2

SNC Lavalin.......................................................................................

36

4.7.3

ThyssenKrupp Uhde GmbH ..............................................................

40

Process Economics ...................................................................................................

45

5.1

COSTING BASIS ..........................................................................................

45

5.1.1

Investment Basis ................................................................................

45

5.1.2

Pricing Basis ......................................................................................

45

5.1.3

Cost of Production Basis ....................................................................

46

VACUUM NEUTRALIZATION PROCESS (N.W. EUROPE,

S. KOREA, AND USGC BASES) ................................................................

47

5.3

PRESSURE NEUTRALIZATION PROCESS .............................................

55

5.4

SENSITIVITY ANALYSES .........................................................................

57

4.7

December 2013 Report Contents

5.2

5.4.1

Sensitivity of Ammonium Nitrate Cost of Production to Ammonia

Price (USGC Basis) ...........................................................................

57

Sensitivity of Ammonium Nitrate Cost of Production to Plant

Scale (USGC Basis) ...........................................................................

57

CONCLUDING REMARKS .........................................................................

58

5.4.2
5.5

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December 2013 Report Contents

Commercial Market Analysis .................................................................................

60

6.1

COMMERCIAL APPLICATIONS ...............................................................

60

6.2

GLOBAL SUMMARY..................................................................................

60

6.2.1

Consumption ......................................................................................

60

6.2.2

Supply ................................................................................................

62

6.2.3

Global Supply, Demand, and Trade ...................................................

63

CHINA ...........................................................................................................

64

6.3.1

Consumption ......................................................................................

64

6.3.2

Supply ................................................................................................

64

6.3.3

Regional Supply, Demand, and Trade ...............................................

66

NORTH AMERICA ......................................................................................

67

6.4.1

Consumption ......................................................................................

67

6.4.2

Supply ................................................................................................

67

6.4.3

Global Supply, Demand, and Trade ...................................................

69

WESTERN EUROPE ....................................................................................

70

6.5.1

Consumption ......................................................................................

70

6.5.2

Supply ................................................................................................

70

6.5.3

Supply, Demand, and Trade...............................................................

72

AUSTRALIA .................................................................................................

73

6.6.1

Consumption ......................................................................................

73

6.6.2

Supply ................................................................................................

73

6.6.3

Supply, Demand, and Trade...............................................................

74

Glossary ....................................................................................................................

76

References .................................................................................................................

78

6.3

6.4

6.5

6.6

Appendix

Page

Definitions of Capital Cost Terms Used in Process Economics ...........................

A-1

Definitions of Operating Cost Terms Used in Process Economics ......................

B-1

About the Authors....................................................................................................

C-1

PERP Program Title Index (2004 - 2013) ..............................................................

D-1

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December 2013 Report Contents

Figure

Page

2.1

Ammonium Nitrate Value Chain and Production Overview ...................................

4.1

Typical Vacuum Neutralization Flow Diagram (Source: Fertilizer Manual) ..........

18

4.2

Typical Pressure Neutralization with Direct Heat Utilization (Uhde) ......................

20

4.3

Typical Pressure Neutralization with Additional Steam Generation (Uhde).............

21

4.4

Typical Flow Diagram for Pipe Reactor Neutralization (GPN) ...............................

23

4.5

Batch Production of UAN Solution ...........................................................................

29

4.6

Continuous Production of Urea Ammonium Nitrate Solution ..................................

30

4.7

Block Diagram of the GPN Pipe Reactor Process .....................................................

33

4.8

Philosophy of pH Monitoring in the Pipe Reactor.....................................................

34

4.9

Typical Prilling Flow Diagram for Use Downstream of a Pipe Reactor

(Source: Fertilizer Manual) ........................................................................................

37

4.10 Typical Fluidized Drum Granulation Process Flow Scheme (SNC Lavalin) ............

39

4.11 Uhdes Vacuum Neutralization Process ...................................................................

41

4.12 Uhdes Stand-Alone UAN Process ............................................................................

44

5.1

Variation of Ammonium Nitrate Production Cost with Ammonia Price ..................

57

5.2

Variation of Ammonium Nitrate Production Cost + 10 percent ROCE with Plant

Scale ...........................................................................................................................

58

6.1

Global AN/CAN Consumption ..................................................................................

61

6.2

Global AN/CAN Capacity .........................................................................................

62

6.3

Global Supply, Demand, and Trade ...........................................................................

63

6.4

China Supply, Demand, and Trade ............................................................................

66

6.5

North America Supply, Demand, and Trade .............................................................

69

6.6

Western European Supply, Demand, and Trade ........................................................

72

6.7

Australia Supply, Demand, and Trade .......................................................................

74

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December 2013 Report Contents

Table

Page

2.1

Technology Licensors ................................................................................................

5.1

Prices of Raw Materials, Products, Utilities and Labor .............................................

46

5.2

Cost of Production Estimate for: Ammonium Nitrate

Process: Vacuum Neutralization/Evaporation/ Prilling (N.W. Europe) ....................

49

Cost of Production Estimate for: 60 percent Nitric Acid (data on a 100 percent
HNO3 contained basis);
Process: Dual Pressure Ammonia Oxidation (N.W. Europe) ....................................

50

Cost of Production Estimate for: Ammonium Nitrate

Process: Vacuum Neutralization/Evaporation/ Prilling (South Korea) .....................

51

Cost of Production Estimate for: 60 percent Nitric Acid (data on a 100 percent
HNO3 contained basis);
Process: Dual Pressure Ammonia Oxidation (South Korea) .....................................

52

Cost of Production Estimate for: Ammonium Nitrate

Process: Vacuum Neutralization/Evaporation/ Prilling (USGC) ...............................

53

Cost of Production Estimate for: 60 percent Nitric Acid (data on a 100 percent
HNO3 contained basis);
Process: Dual Pressure Ammonia Oxidation (USGC)...............................................

54

5.8

Pressure Neutralization Process .................................................................................

55

5.9

Cost of Production Estimate for: Ammonium Nitrate ..............................................

56

6.1

Global AN/CAN Consumption ..................................................................................

61

6.2

Global AN/CAN Supply ............................................................................................

62

6.3

Global Supply, Demand, and Trade ...........................................................................

63

6.4

China AN Capacity ....................................................................................................

64

6.5

China Supply, Demand, and Trade ............................................................................

66

6.6

North American AN/CAN Consumption...................................................................

67

6.7

North America Ammonium Nitrate Capacity ............................................................

68

6.8

North America Supply, Demand, and Trade .............................................................

70

6.9

Western European AN Capacity ................................................................................

71

6.10 Western European CAN Capacity .............................................................................

72

6.11 Western Europe Supply, Demand, and Trade ............................................................

73

6.12 Australia Ammonium Nitrate Capacity .....................................................................

74

6.13 Australia Supply, Demand, and Trade .......................................................................

75

5.3

5.4
5.5

5.6
5.7

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PERP REPORT 2013S6, Ammonium Nitrates
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Ammonium Nitrates

December 2013 Report Contents

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PERP PROGRAM
PERP REPORT 2013S6, Ammonium Nitrates
A00101.0013.4114