OCI to expand Rotterdam ammonia terminal capacity

Netherlands-based fertilizer producer OCI plans to expand its ammonia import terminal at the Port of Rotterdam, to serve emerging demand for the product as a bunker fuel at Europe's main hub.

The company said it has a two-stage plan that starts with raising throughput capacity to 1.2mn t/yr from 400,000 t/yr by the end of 2023. The second stage involves building a scalable ammonia tank and jetty infrastructure to allow for a potential increase in throughput to more than 3mn t/yr. It said it it is seeking permits for the project this year.

OCI's announcement comes at a time when the shipping industry is weighing up its future fuel requirements. Classification society DNV has said ammonia will account for 35pc of the shipping fuel mix by 2050 and several firms, including Japan's ONE have ordered vessels ready to be powered by hydrogen-derivative fuel.

But ammonia output is 10 times smaller than it will need to be to serve as a marine fuel and prices remain expensive compared with fossil bunkers. Argus assessed ammonia delivered to northwest Europe at $2,299/t, a $1,369/t premium to very low sulphur fuel oil (VLSFO).

However, the International Maritime Organisation's (IMO) target for a 50pc reduction in overall greenhouse gas (GHG) emissions and a 70pc cut in CO2 emissions by 2050 will probably hasten the importance of alternative fuels and their supply capacity.

By Jonah Sweeney