Process Economics Program Report 127B
Economics of Fertilizer Complexes
Published: November 1999
This report offers a complete information package regarding the current status of the worldwide fertilizer market, including technology, environmental issues, production costs, cash flow analyses, and internal rates of return. This essential industry is experiencing a period of intense International competition, low profit margins, plant consolidation, and restructuring. Moreover, traditional fertilizer importing countries in Asia are building new plants to become self-sufficient in fertilizer supply. The report, in addition to a comprehensive summary, consists of the following sections:
Section 3 discusses fertilizer types and classification, the benefits and levels of fertilization, raw material sources, industry structure, world and U.S. consumption, production capacities, new project announcements, prices, and an overview of the industry.
Section 4 compares the various current technologies used in fertilizer production, and summarizes recent patents for new and improved technologies.
Section 5 updates PEP�s production costs for a new, world-scale nitrogen fertilizer complex consisting of ammonia, nitric acid, ammonium nitrate, urea, and nitrogen solution. The economics of the complex are analyzed for four locations: the U.S. Gulf Coast, Alberta, Canada, Saudi Arabia, and China. Comparisons are made on the basis of cash flows and internal rate of return.
Section 6 covers a phosphorus fertilizer complex consisting of sulfuric acid, wet process phosphoric acid, monoammonium phosphate, and diammonium phosphate. The plant locations and economic analysis method are the same as those in Section 5.
Section 7 addresses environmental issues and regulations relating to the production and use of fertilizers in selected countries and the outlook for waste reduction and avoidance.
The report provides timely information that should be of great value to present and future fertilizer producers, international traders, financial institutions, equipment and technology providers, researchers, and engineering contractors.