UK CO2 shortage concerns erupt as Billingham halts ammonia production

CF Fertilisers UK – a subsidiary of CF Industries Holdings, Inc – that it will temporarily halt ammonia production at the Billingham Complex due to ‘market conditions.’

Despite ceasing production, the company plans to harness the site’s ammonia import capability to continue to run its ammonium nitrate (AN) and nitric acid upgrade plants. 

With the UK relying on CO2 as a by-product of ammonia production, if prolonged, the closure could have a significant impact on the wider food and beverage industry.

Citing high natural gas and carbon prices, CFF UK stated that ammonia production is uneconomical, with natural gas costs at NPB more than twice as high as it was one year ago. 

According to the company, marginal costs of ammonia are above £2,000 per tonne while global ammonia prices remain at about half that level. 

The news comes just over two months after CFF revealed that it will permanently close its Ince manufacturing facility near Chester. 

from:gasworld