Business Results: CF Industries expects to decide on low-carbon ammonia plant early next year

By Medicine Hat News on November 9, 2024.

CF Industries could make a final decision to build a new, low-carbon ammonia plant in early 2025, company officials told investors in discussions of third-quarter results on Oct. 30.

Chief operating officer Chris Bohn stated that the global ammonia producer forecasts tightening supply in coming years, and will evaluate the market for low-carbon product when determining new capital projects.

By the end of the year, CF expects to complete engineering and feasibility work on autothermal reforming processes and the viability of adding flue gas carbon dioxide capture to steam methane reforming facilities.

“It’s advancing well,” said Bohn. “It gives us greater clarity on the capital, and we continue to have productive discussions with potential equity partners and perspective long-term off-take partners … We expect a tightening global market over the next few years as projected new capacity growth does keep pace with demand growth for traditional applications, much less for new, clean-energy applications.”

CF is also commissioning a 20-megawatt electrolysis facility at its Donaldsonville plant in 2025, where it separately plans to add carbon capture equipment in a sequestration partnership.

Net earnings for the first nine months of 2024 were US$890 million, compared to US$1.23 billion in the same period in 2023.

Cancarb

Tokai Carbon, the parent company of Hat-based carbon black producer Cancarb, stated on Nov. 6 that sales volumes in the sector fell year over year in the recent quarter. Net sales and profits rose however, due to pricing and currency exchange.

The Tokyo-based firm that has carbon black operations in Asia and North American reported sales increased 7.4 per cent, while operating income rose 2.8 per cent to 16.4 billion yen, about C$166 million.

The company that also produces fine carbon and graphite for industrial processes told shareholders in the spring it would pursue “stable growth” for carbon black units that were performing well as global tire production rose 3 per cent.

Methanex

Methanex’s new Geismar 3 plant has been operating continuously since the beginning of October after a delay in commissioning the new 1.8-million tonne capacity plant last spring, the Vancouver-based methanol producer reported Wednesday.

Third-quarter financial report states the company saw stable sales and revenue in the quarter ending Sept. 30.

During the period the company also started and calibrated the Geismar Plant, and announced the acquisition of two other methanol plants owned by OCI in Texas.

Production at its Medicine Hat during the quarter ending in September was 142,000 tonnes, about 95 per cent of capacity.