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Yara's Hull Plant Mothballing Highlights Europe's Ongoing Energy Challenges

The recent announcement (on 7 February 2025) of Yara International's decision to mothball its Hull ammonia plant in the UK, which has an annual capacity of 300,000 metric tons represents a striking example of how Europe's energy crisis continues to impact industrial production.

This decision is part of a broader strategy to reduce European ammonia production by 1 million metric tons due to high natural gas feedstock costs and the impact of European carbon policies.

The Hull plant closure, likely permanent, reflects the challenges faced by energy-intensive industries in Europe, where elevated energy prices and regulatory pressures have significantly eroded competitiveness.

The Natural Gas-Fertilizer Connection

Fertilizer production, particularly nitrogen-based fertilizers, is
inextricably linked to natural gas prices. Natural gas serves not only as an energy source but also as a key raw material in the production process. Through the Haber-Bosch process, natural gas (methane) is converted into hydrogen, which then combines with nitrogen from the air to produce ammonia – the building block of nitrogen fertilizers.

When natural gas prices surge, fertilizer production costs increase dramatically, as gas can represent up to 80% of the production costs for nitrogen fertilizers. This direct relationship makes fertilizer plants particularly vulnerable to gas price volatility.

The Chain of Events: Europe's Energy Market Transformation

The current situation stems from a series of significant changes in Europe's energy landscape:

Europe took the decisive step of sanctioning gas imports from Russia altogether, forcing a dramatic restructuring of its energy supply chains. This led to a rushed transition toward liquefied natural gas (LNG) from distant suppliers like the United States and Qatar. However, LNG proves significantly more expensive than pipeline gas due to the complex processes of liquefaction, oceanic transport, storage and regasification.

Germany's decision to accelerate the dismantling of its nuclear power plants set an early precedent for increased gas dependency in Europe's largest economy. This shift put additional pressure on the continent's gas supplies and grid stability.

The situation intensified when the Baltic states decided to cut
themselves off from the Russian power grid on 9 February 2025, leading to significant spikes in regional electricity prices. This was preceded by Ukraine's decision to halt gas transit through its territory on 1 January 2025, which had been a crucial pipeline route for Russian gas reaching European markets.

New U.K. Tax Rates Are Hammering North Sea Oil And Gas Drilling

In the UK, the situation intensified in October when the UK government raised the Energy Profits Levy (EPL), commonly known as the windfall tax, from 35% to 38%. The United Kingdom currently imposes one of the world's highest tax burdens on offshore oil and gas production, with operators in the North Sea facing a total tax rate of 78% resulting from the combination of standard taxation and the EPL.

The policy has created a challenging environment for the UK's domestic energy production, Britain now paying the highest electricity prices in the World.

Norway's Gas Threat: A New Risk to Europe's Energy Security

Norway, a critical supplier of natural gas to Europe, has recently hinted at potential disruptions to its energy exports due to domestic and geopolitical pressures. Currently providing nearly half of Germany's gas supply, Norway has become indispensable for European energy security following the decline of Russian gas imports.

However, soaring electricity prices in Norway—six times the EU average—have sparked domestic backlash, with political parties advocating for reduced energy exports to prioritize national affordability. Additionally, technical failures, such as the January 2025 shutdown of Norway's Hammerfest LNG plant, have already tightened Europe's strained energy supply.

These developments highlight Europe’s vulnerability to disruptions in Norwegian gas flows, further exacerbating its ongoing energy crisis.

European Decarbonization Policies

Both the EU and the UK are undergoing significant transformations in their energy landscapes as part of ambitious decarbonization policies aimed at achieving net zero emissions by 2050. The EU’s European Green Deal and legally binding Climate Law, alongside the UK’s Clean Power 2030 Action Plan and Emissions Trading Scheme (ETS), have driven renewable energy adoption and reduced reliance on fossil fuels.

The measures have significantly impacted energy prices across Europe. Investments in green technologies, carbon pricing, and restrictions on fossil fuel use have increased costs for industries and households alike.

In the UK, phasing out coal power and limiting new oil and gas licenses have heightened dependency on renewables and imported energy, raising concerns about energy security.

Deindustrialization in Europe: The Impact of Surging Energy and Gas Prices

These rising costs are placing heavy financial pressure on energy-intensive industries across Europe and the UK, accelerating trends of deindustrialization, exacerbated by geopolitical tensions, net zero energy policy decisions, and the reduction of Russian gas supplies.

Energy-intensive industries, such as chemicals, steel, and aluminum, have been particularly affected, with many companies curbing production or relocating to regions with lower energy costs like the U.S. or Asia. Yara's decision to close its Hull ammonia plant is only the latest in a long list of industrial failures across Europe.

#naturalgas  #deindustrialization  #europe  #fertilizer  #ammonia  #lng #ttf

A Generic Integrated Gasification Combined Cycle (IGCC) Coal Power Plant technology has been added.


#igcc  #coalpowerplant  #combinedcycle  #steamcycle  #gasturbine  #coalgasification  #

Coal power plant has been added and a generic technology created.


#coalpowerplant  #steamcyclecoalpowerplant  #coal  #steamcycle  #gasification  #igcc  "electricpower #electricity  #powergeneration 

10 Dec 2024.

COAL IMPORTS

In 2024, the global reliance on thermal coal is proving to be more resilient than expected. Kpler reports a 9 million metric ton increase in thermal coal exports for the first 11 months compared to 2023, with Indonesia leading the charge by exporting over 500 million metric tons. Exports will climb further in December as power firms stock up for the Northern hemisphere winter. China expanded imports by around 8% to a record 340 million tons from January 1st through the first week of December.

COAL IMPORTS AND CONSUMPTION

China's electricity generation from coal-fired plants climbed 2% over the first 10 months of 2024 to a new record of 4,838 terawatt hours, according to energy think tank Ember, making 2024 the ninth consecutive year of coal-fired expansion in China. The continued expansion in coal imports and use underscores the difficulty of dislodging fossil fuels from energy systems, and may disappoint those hoping for a peak in coal burning. Beyond China, other key growth markets for coal imports and consumption this year are across Southeast Asia, where several economies have benefited from expanded manufacturing output and exports, and rising regional consumption.

Sources: finimize, Reuters

#coal  #thermalcoal  #china  #india  #indonesia  #coalexports  #coalimports 

Guangxi Huayi Energy Chemical Co., Ltd. and Gas Island Project in Qinzhou have been added.
 

#guangxi  #shanghai  #china  #huayi  #energychemical  #gasislandproject  # coal #coalgasification  #methanol  #ethyleneglycol  #meg  #aceticacid  #coaltochemicals  #coaltomethanol  #coaltoolefins 

Construction site of Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization methanol upgrade demonstration project. Image provided by Zhongtai New Materials Co., Ltd.

Xinjiang Zhongtai New Materials Methanol Project Construction Accelerates.

2024-08-09 12:35:58 Source: Tianshan Net - Xinjiang Daily Original

Tianshan Net-Xinjiang Daily (reported by reporter Shi Xin) At present, the construction site of Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization of methanol upgrading demonstration project is crowded with people and roaring machines. Construction personnel are working hard and efficiently to advance the project towards the October 30 deadline.

The project is an important project of Xinjiang Zhongtai New Materials Co., Ltd. (hereinafter referred to as "Zhongtai New Materials Company") in the modern coal chemical industry planning. It is located in Toksun County with a total investment of 5.991 billion yuan. The project makes full use of the characteristics and advantages of coal chemical industry, uses the by-product screening residues (coal powder and coke foam) of the company's semi-coke device as gasification raw materials, and turns low-value materials into production raw materials, thereby increasing their added value, extending the industrial chain, realizing the resource utilization of waste, and improving the development level of the coal classification and quality utilization industry.

At the same time, lignite tail gas (raw coal gas) can be purified to produce hydrogen, and using hydrogen as raw gas for synthesizing methanol can reduce raw coal consumption and carbon dioxide emissions.

On July 23, the first methanol synthesis tower of the project was successfully hoisted, marking the full entry into the peak stage of installation. At present, Zhongtai New Materials Company is scientifically formulating construction plans and accurately reversing construction plans with the project general contractor, construction unit, and supervision unit under the premise of ensuring quality and safety.

Ma Kui, Party Secretary and Chairman of Zhongtai New Materials Company, said that the implementation of the project can promote the comprehensive utilization of resources locally and nearby. After it is put into production, it can form mutual support between the internal industries of Xinjiang Zhongtai (Group) Co., Ltd., continuously enhance the overall competitiveness and stability of the industrial chain, and meet the methanol demand of Xinjiang fine chemicals and new chemical materials enterprises, while also creating 800 jobs.

[Editor: Liu Hai]

#coaltomethanol #coal  #newmaterials  #zhongtai  #turpan  #china  #xinjiang 

Market Information at 10:36, November 22, 2024 | Sina Finance APA

According to Sinochem News, the Xinjiang Zhongtai New Materials Co., Ltd.'s resource-based comprehensive utilization methanol upgrade demonstration project, which was general contracted by China Tianchen Engineering Co., Ltd., a subsidiary of China National Chemical Corporation, successfully completed the handover ceremony of the gasification/air separation unit, marking the official entry of the project from the construction stage to the trial production preparation stage.

Tianchen Company is mainly responsible for the construction of the air separation and gasification units of the project. The air separation unit is equipped with two sets of 60,000 standard cubic meters/hour space separation equipment, and the gasification unit is equipped with three 286,331 standard cubic meters/hour (CO+H₂) synthesis gas gasifiers.

It is reported that since the start of the project, the Xinjiang Zhongtai Project Department has fully mobilized various resources, leveraged its project management advantages, led all participating units to overcome difficulties, promoted high-standard and high-quality construction of the project, and successfully completed the contract schedule goals.

#xinjiang  #zhongtai  #newmaterial  #turpan  #toksun  #coal  #coaltomethanol  #gasification 

Xinjiang Zhongtai Chemical's 1 million ton coal-to-methanol project.

Date: 2024-9-24 | China Carbide Network News.

      On September 10, 2024, the Xinjiang Zhongtai New Materials Project substation constructed by the Xinjiang Branch of Sinochem Second Construction Group Co., Ltd. successfully received power for the first time, which was well received by all parties. The completion of this key node laid the foundation for the single-unit commissioning.

The Xinjiang Zhongtai Resource Comprehensive Utilization Methanol Upgrading Demonstration Project mainly constructs 1 million tons / year methanol and 18,900 tons / year sulfuric acid production lines, as well as air separation units , gasification units, low-temperature methanol-washed synthesis gas purification units, methanol synthesis units and supporting units.

The Xinjiang Zhongtai New Materials Resource Comprehensive Utilization Methanol Upgrading Demonstration Project is located in Tongxin Industrial Park, Alehui Town, Toksun County, Xinjiang. The planned total investment is about 5.99 billion yuan. The waste gas and screenings (coke powder and coal foam) produced by the semi-coke unit built by Zhongtai Group in Toksun County are used as raw materials to build a 1 million tons / year methanol project. The gasification unit is equipped with 3 Jinhua furnaces 3.0 , which mainly produce 286.331Nm3/h ( CO+H₂ ) of synthetic gas , with an annual operating time of 8,000 hours, 2 in operation and 1 in standby.

#zhongtai  #newmaterial  #coaltomethanol  #china  #turpan  #xinjiang  #coal  #methanol 

Zhongtai Toksun Energy Chemical and calcium carbide manufacturing site have been added.

#zhongthai #toksun  #energychemical  #calciumcarbide  #coal  #china  #turpan  #xinjiang 

Fuyou Technology, from top left to bottom right: a corner of the factory, office building, satellite view, 170 kta coal tar full fraction hydrogenation unit, 500 kta coal tar full fraction hydrogenation unit, 80 kta light hydrocarbon fraction separation unit.

Fuyou Technology has developed combined coal-based process technologies such as coal pyrolysis, hydrogenation of medium and low temperature coal tar full fractions to produce more intermediate distillate oil, efficient impurity removal and aromatics saturation of naphtha to produce cycloalkane chemicals. The company is the leading producer of methylcyclohexane, light white oil, transformer oil and aerospace special oils obtained from medium and low temperature coal tar.

Low-grade coal, which accounts for about 55% of the total coal resources in Shaanxi, Inner Mongolia, Xinjiang, has low carbon content and calorific value, and relatively high tar yield and hydrogen and oxygen content. The characteristics of the feedstock is conducive to efficient transformation and utilization through medium and low temperature pyrolysis.

Fuyou Technology's pyrolysis process product is separated into three substances: gas (coal gas), liquid (coal tar), and solid (semi-coke), and further converted to obtain clean fuels such as oil, gas, and electricity, as well as high value-added chemical products. The company has built and put into use China's first 170,000 tons/year medium and low temperature coal tar full-fraction hydrogenation high-yield intermediate distillate oil industrial demonstration unit and a 500,000 tons/year coal tar full-fraction hydrogenation production cycloalkane oil unit, promoting the high-end transformation of coal tar and realizing the transformation of coal from a single fuel to diversified products.

The naphtha separation unit now produces 80,000 tpy naphtha, which is converted mainly into cyclohexane, methylcyclohexane, and dimethylcyclohexane. Fuyou Technology is the largest methylcyclohexane producer in China, with an annual output of 30,000 tonnes, accounting for 85% of the market share. The company has also laid out industrial chain extension projects to produce high value-added products such as ethylcyclohexane.

Li Zhuoran, 10 Oct 2024, Focus on the high-quality development of Shaanxi's energy and chemical industry, West China Network.

#coal  #coalgasification  #coaltar  #cycloalcane  #naphtha  #distillate  #pyrolysis  #fuyou  #fuyoutechnology  #shaanxi  #yulin  #china 

Shenmu Fuyou Energy Technology Co., Ltd. and production site in Yulin City, Shaanxi Province, have been added. It is a coal to chemical producer and a subsidiary of Shaanxi Coal Group.


#fuyoutechnology  #shaanxi  #yulin  #china  #coaltochemical  #pyrolysis  #coaltar  #shaanxicoalgroup 

The product sutructure of the ZPC Zhoushan refining and chemical operations has been updated. 


#zpc  #zpcc  #zpczhoushan  #zheijiang  #zheijiangpetrochemical  #zheijiangpetroleumandchemicals  #zhoushan  #china  #rongsheng  #aramco  #saudiaramco  #crudeoil  #coaltochemical 
 

Shaanxi Yulin Energy Group Co., Ltd. has been added.
 

#shaanxi #yulin  #yulinenergygroup  #china  #coal  #coaltochemical 

Shaanxi Yulin Energy Chemical New Materials Co., Ltd. and manufacturing site created. Project is co-located with Yulin Energy Fine Chemicals Co., Ltd.

Coal-to-chemical site is in a project phase.


#shaanxi  #yulinenergy  #newmaterials  #coaltochemical  #epoxyresin  #chloralkali
 

Shaanxi Coal Group Yulin Chemical and the two-phases of the coal-to-chemical projects in Shenmu have been added.

#shaanicoalgroup  #yulinchemical  #coaltochemical  #coaltoolefins  #coaltoaromatics  #china 

Yulin Energy Fine Chemicals Co., Ltd. and manufacturing site created. Details about actual activities of the site are not clear.

Project is co-located with Shaanxi Yulin Energy Chemical New Materials Co., Ltd.

#yulinenergy  #china  #shaanxi  #coaltochemical  #finechemicals