Ammonia Prodution: Reent Advanes in Catalyst and Proess Tehnology and Impats on the Competitive Landsape Proposal Selet-Client Study April 2018
Proposal Table of Contents I. Bakground II. Study Need III. Fous Areas for the Study A. Proess Advanes B. Catalysis Advanes C. Future Tehnologies D. Competitive Impliations IV. Sope & Methodology V. Proposed Study Table of Contents VI. TCGR Expertise & Qualifiations VII. Order Form The proposed study will over reent tehnial developments in ammonia prodution and assess the impliations on the ompetitive landsape. As always, harter subsribers (those who sign up prior to launh) are enouraged to provide feedbak on the Table of Contents. 1
Global Annual Ammonia Prodution (MT) Bakground Tehnology Changes Will Have Broad Competitive Impliations Ammonia prodution has been steadily inreasing ever sine the first large sale prodution by BASF just over 100 years ago. Estimated prodution in 2017 was over 150 MT and apaity is estimated to be over 230 MT. The largest produing ountries are China, India, Russia, United States, Trinidad & Tobago, and Indonesia. The main uses for ammonia are urea, ammonium nitrate, ammonium phosphates, nitri aid, and ammonium sulfate. Global prodution is expeted to ontinue to grow 3-5%/yr. due to inreasing fertilizer demand. Global Ammonia Prodution by Country 150 125 100 75 50 25 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 All Others Qatar Canada Saudi Arabia Trinidad and Tobago Indonesia United States India Russia China Soure: USGS There is a global rae to develop a new proess tehnology to replae Haber-Bosh in ammonia prodution! 2
There is a Need for an Assessment of Reent Progress by Leaders and Others Energy onsumption by ammonia prodution is the largest in the hemial industry. CO 2 emissions are at least 2x the prodution volume. There has been reent progress whih goes beyond inremental proess tehnology improvements in ammonia prodution to yield disruptive, and even breakthrough, advanements. Catalyst and related proess improvements ould redue energy intensity for hemial manufaturing (ammonia inluded) by 20 40% as a whole by 2050. Soure: DECHEMA There is a global rae to develop a new proess tehnology to replae Haber-Bosh in ammonia prodution. 3
Tehnology Advanes to be Doumented Address Both Step-Change and Inremental Progress Toward Future Prodution Needs Future Requirements Inreased Prodution Volumes Inreased Prodution Effiienies Lower Pollutant Emissions Inreased Reliability Greater Sale of Prodution More Operational Flexibility Companies like Clariant, Casale, ThyssenKrupp, Johnson Matthey, Haldor Topsoe, BASF, KBR, Linde and others are making notable progress and disrupting the ompetitive environment. 4
Continuing Advanes of Haber-Bosh Theory Pratie There have been noteworthy effiieny improvements for large-sale plants and new opportunities for small/medium-sale plants but more progress is needed. Soure: ARPA-E 5
Example Advanes in Ammonia - Proess Casale A600: 350-900 MTD systems A2000: 1,000-3,000 MTD A6000: 6,000 MTD A6000 drastially debottleneks all ritial items that limit the maximum apaity in onventional plants, thereby permitting a higher single train apaity. A6000 ahieves this result by adoption of three major design onepts: 1. A nitrogen-free front-end based on a pre-reformer and oxygenblown auto-thermal reformer(atr) 2. Enhaned arbon dioxide removal, and purifiation based on Liquid Nitrogen Wash 3. Inert-free ammonia synthesis loop with two Casale synthesis onverters. Haldor Topsoe SynCOR Ammonia 4,000-6,000 MTD With SynCOR Ammonia the use of two high temperature shift reators in series, a nitrogen wash to remove the CO, and reyling of shift by-produts has resulted in numerous benefits suh as byprodut formation being redued lose to zero. Proess tehnology liensors ontinue to inrease prodution effiieny, sale, and reliability 6
Example Advanes in Ammonia - Catalysis Clariant Shiftmax 820s Presulfided Sour Gas Shift Catalyst Clariant has started-up its pre-sulfided ShiftMax 820S Sour Gas Shift (SGS) atalyst at a ommerial methanol prodution faility of Shanghai Huayi Energy Chemial Co. Ltd. - the first industrial appliation of the newly introdued ShiftMax 820S atalyst in China. The atalyst employs a proprietary pre-sulfiding proess whih offers higher ativity, reduing syngas and energy requirements and allowing more eonomial, effiient and simplified operations. (Soure: Clariant, 2015). Low Temperature Shift (LTS) hloride guard ShiftGuard 200 ShiftGuard 200 effetively adsorbs and retains hlorides so that the downstream main LTS atalyst, suh as Clariant's ShiftMax 217, is proteted and an show its superior quality (Soure: Clariant, 2016). Haldor Topsoe SK-501 Flex TM a high temperature shift (HTS) Topsoe introdued SK-501 Flex TM a high temperature shift (HTS) atalyst with the unique ability to operate at any steam-to-arbon ratio. For a large-sale ammonia plant, the improvement in revenue is approximately $11 million per year or $57 million over a typial atalyst lifetime. The SK-501 Flex TM formulation is based on zin oxide and zin aluminum spinel. The iron-free formulation prevents formation of unwanted iron arbides that redue the atalyst strength of onventional iron-based HTS atalysts. (Soure: Haldor Topsoe, 2016). Ammonia synthesis atalyst: KM 111 KM 111, a magnetite-based atalyst, developed for lower beds of the ammonia onverter possesses an ativity that surpasses the market-leading ativity of KM1. At existing plants, energy onsumption an be redued by operating at lower loop pressures and lower onverter inlet flows with no ompromise to prodution levels. (Soure: Haldor Topsøe, 2014). Catalyst advanements are direted towards syngas and ammonia steps 7
New Tehnologies Beyond Haber-Bosh Among the important ativities in NH 3 prodution are novel approahes, inlude the ARPA-E REFUEL Program in the US. Speifi areas inlude: Eletrohemial Membrane Reators Bettergy, Moleule Works In., Giner, Ceramate Catalyti RTI (with Ammonia Casale), Tsubame BHB (Tokyo Institute of Tehnology), QuantumSphere Photohemial This study will review important upoming tehnologies and highlight the potential game-hanging advanements in the rae to replae Haber-Bosh. 8
Commerial Advanes Highlights KBR Announes Completion of Landmark Dyno Nobel Ammonia Plant Ot. 2016 The projet is the first to use an integrated KBR solution of KBR's Purifier ammonia tehnology along with KBR's engineering, onstrution and prourement (EPC) servies. It is one of the first onshore ammonia plants built in the United States in the past 20 years, and the first new grassroots ammonia plant in Louisiana in over 30 years. Salalah Methanol Company, a wholly owned subsidiary of Oman Oil Company, announes liquid ammonia plant - Marh 2017 SNC-LAVALIN has been awarded a ontrat for the engineering, prourement and onstrution (EPC) of a 1,000 metri ton ammonia plant using a tehnology provided by Linde Group. Metafrax and Casale sign ontrat for Russian hemial omplex Ot. 2017 PJSC Metafrax and Casale have announed that they have signed a ontrat for the engineering, equipment supply and onstrution management of a large hemial omplex to be implemented in Gubakha, Perm region, Russia. The projet will onsist of the following omponents: One 894 tpd ammonia synloop, utilising A2000 C TM tehnology, operating on pure hydrogen and nitrogen feedstok. One 1,725 tbd urea plant, using Split Flow TM and Full Condenser TM tehnologies. One 40,000 tpy melamine plant, utilising LEM TM tehnology. The seletion of a proess liensor reflets importane of tehnology, with leaders leveraging advantages. 9
Commerial Advanes Highlights Toyo awarded ontrat for Indian fertilizer omplex Marh 2018 The fertilizer omplex will onsist of an ammonia plant with a apaity of 2,200 tpd and a urea plant with a apaity of 3,850 tpd. The ammonia prodution tehnology of KBR and Toyo s urea synthesis tehnology, ACES 21, will be used. Cronus Fertilizer selets Thyssenkrupp Industrial Solutions for its Illinois plant August 2017 The revised plant design will fous more on ammonia prodution and on-site delivery than originally antiipated. The Cronus plant will have the apaity to produe 2,300 metri tons per day of ammonia and up to 2,000 metri tons per day of granular urea. The plant s strategi loation will benefit Illinois and area farmers by produing fertilizer loally that an be delivered via pipeline or truk, replaing the need for imported produts. New Japanese ompany, Tsubame BHB Co July 2017 A new ompany Tsubame BHB Co., Ltd. (Tokyo, Japan) has been established to ommerialize the world s first on-site prodution of ammonia for supplying amino-aid synthesis, fermentation materials and fertilizers. The ompany a joint venture of Ajinomoto Co., In., No. 1 UMI Limited Partnership and professor Hideo Hosono at the Tokyo Institute of Tehnology began operations last April, and aims to implement first NH3 prodution by 2021. The prodution proess will be based on a new atalyst that was developed in the laboratories of professor Hosono. Commerialization of advaned proesses will impat the ompetitive landsape with impliations defining winners and losers. 10
Strategi Impliations Ammonia prodution is projeted to ontinue to grow at > GDP rates. It is a global, fragmented industry offering ample opportunity to proess liensors, atalyst suppliers, engineering ontrators, operating ompanies, suppliers, and end-users in the agriulture and hemial industries. The ammonia industry urrently utilizes an energy-intensive prodution pathway. Both marginal and major improvements an offer and will provide signifiant savings in terms of inreased prodution, effiieny, and operational reliability. TCGR and its Dialog Group, whih inludes industry experts with signifiant experiene, will provide an analysis of the key tehnologial advanements. The ompleted study will provide valuable intelligene in a suint format that an be shared with multiple members of your team in a number of different roles (from R&D to operations to strategy). From newly announed ommerial atalysts and proess enhanements to utting-edge researh urrently at the pilot-sale (or earlier), look to TCGR and this selet-lient study to provide the business and engineering knowledge needed by your ompany. TCGR reports provide intelligene and analysis on the key tehnologies that annot be found elsewhere in the industry. 11
Proposed Study: Sope/Methodology In this assessment, TCGR will doument the urrent benhmark or inumbent tehnologies for ammonia prodution and highlight the major areas where tehnology development has, an, or will result in both emerging/evolutionary or breakthrough/ game hanger progress towards prodution sale and ost effiieny/produtivity gains. Comparisons will be made between urrent and developmental tehnologies, inluding assessments of tehnology readiness levels (TRLs), timing of potential impats at ommerial sale, and the ritial partiipants in suess, whether they be liensors, produers or affiliated onsortia/aademia/governmental agenies on a global sale. Due to the size of ammonia prodution and its importane in appliation, notably as a ritial omponent in fertilizers with impliations on the ability to address world food needs, this topi merits detailed attention by and for the benefit of industrial players. In reognizing the gap between urrent tehnologies and the developments towards both emerging and disruptive game hanger tehnologies, TCGR will ondut its assessment addressing both tehnial and ompetitive/strategi information, designed to identify ompetitive opportunities and/or threats for industrial partiipants and affiliated organizations/institutes This TCGR study will provide the tehno-eonomi analysis, not available elsewhere, on the best available and developing tehnologies. 12
Proposed Study Outline I. Exeutive Summary II. Ammonia Industry Bakground A. Market Size and Growth B. Key Players and Tehnology Benhmarks III. Proess Tehnology Developments (2008-2018 and 2020+) A. KBR, Haldor Topsoe, Ammonia Casale, et. B. Opportunities for Gains in Produtivity and Effiieny IV. Catalyst Tehnology Developments (2008-2018 and 2020+) A. Clariant, Johnson Matthey, Haldor Topsoe, et. B. Catalyst Improvements and Gains V. Future Ammonia Prodution & Drivers for Change A. Catalyti B. Eletrohemial C. Other VI. Competitive and Strategi Impliations Charter subsribers (those who sign up prior to launh) will be able to shape the ontent of the report inluding speifi ompanies, tehnologies and other fators to be inluded The report will be delivered in PowerPoint format and onsist of 50-75 slides. 13
TCGR Experiene & Qualifiations TCGR will leverage its aess to hemial/ammonia industry experts that have >30 years industry experiene via its Dialog Group (a mixture of ommerial & tehnial) in ompleting this study. TCGR will utilize publily available and in-house information to omplete the deliverables as well as patent searhes, tehnial literature reviews, and in-field interviews with atalyst manufaturers and proess liensors. TCGR Dialog Group experts have deep experiene in the required tehnology from a proess tehnology, atalyst tehnology & appliation perspetive. The Catalyst Group Resoures has overed related tehnial proess advanements in similar reports; those an be seen here on our website. Other advanements are also traked as part of our Catalyti Advanes Program and CO 2 Capture and Conversion Program. The Dialog Group is a renowned group of industry-leading experts that provide key intelligene and analysis of the hemial industries. 14
Order Form & Serey Agreement The Catalyst Group Resoures, In. P.O. Box 680, Spring House, PA 19477 USA Tel: +1.215.628.4447 Fax:+1.215.628.2267 e-mail: tgr@atalystgrp.om website: www.atalystgrp.om Please enter our order for Ammonia Prodution: Reent Advanes in Catalyst and Proess Tehnology and Impats on the Competitive Landsape to be ompleted within 8-10 weeks of launh (i.e., July/August 2018), as follows: Ammonia Prodution: Reent Advanes in Catalyst and Proess Tehnology and Impats on the Competitive Landsape, as a harter subsriber (i.e., prior to May 18, 2018) for US$15,500 (US$18,000 after study launh) to be delivered as a PDF file ontaining PowerPoint slides, whih inludes use aross loations (i.e. site liense). In signing this order form, our ompany agrees to hold this report onfidential and not make it available to subsidiaries unless a ontrolling interest ( 50%) exists. Signature: Date: Name: Title: Company: Billing Address: City: State/Country: Zip/Postal Code: Phone: E-mail: Purhase Order No. (if required) This report and our study findings are sold for the exlusive use of the lient ompanies and their employees only. No other use, dupliation, or publiation of this report or any part ontained herein is permitted without the expressed written onsent of The Catalyst Group Resoures, In. 15
Dediated to monitoring and analyzing tehnial and ommerial developments in atalysis as they apply to the global refining, petrohemial, fine/speialty hemial, pharmaeutial, polymer/elastomer and environmental industries. Additional Information and TCGR Contat Details Gwynedd Offie Park P.O. Box 680 Spring House, PA 19477 USA Mr. John Murphy, President jmurphy@atalystgrp.om Mr. Ted Heron, Sales & Projet Manager theron@atalystgrp.om +1.215.628.4447 tgr@atalystgrp.om www.atalystgrp.om 16