CF Industries proposes to close Billingham fertiliser plant – What does it mean for AD?

CF Industries, a global fertiliser company, has proposed permanently closing the ammonia plant at its Billingham Complex in the UK – read the news article here. The company plans to continue producing ammonium nitrate fertiliser and nitric acid at Billingham by importing ammonia. CF Industries made this proposal due to projections that producing ammonia at Billingham will not be cost-competitive long-term compared to importing, primarily due to high UK natural gas prices and carbon costs.

CF Industries believes global ammonia availability for import will allow more efficient production and supply of fertiliser and nitric acid for its UK customers. The company estimates the ammonia plant closure could result in up to 38 redundancies at Billingham. CF Industries will consult with the union Unite and employee representatives and anticipates some redundancies may be avoided by redeployment.

The proposed closure of the Billingham ammonia plant would reduce the UK’s domestic commercial CO2 production, as CO2 is a byproduct of ammonia manufacturing. This could drive increased demand and higher prices for CO2 from other sources like anaerobic digestion.

Anaerobic digestion facilities can capture carbon-neutral biogenic CO2 from biogas upgrading to biomethane. With less CO2 supply from traditional ammonia plants, AD bioCO2 production may need to increase to meet market demand. However, upgrading AD plants to capture bioCO2 requires investment in new infrastructure. Higher CO2 prices after the Billingham closure could incentivise more AD operators to install these capture systems.

In summary, while the Billingham closure will negatively impact conventional CO2 supply, it could also represent an opportunity for the AD industry to boost bioCO2 production and play a larger role in the renewable CO2 market. To enable the AD industry to fill the growing CO2 gap, increased government investment and policy support are vital. Financial incentives, infrastructure funding, and long-term agreements could allow AD to thrive as a renewable source of bioCO2. The government must act now to provide regulatory and economic backing so AD can scale up production, make the required capital investments, and deliver a sustainable domestic supply of CO2. With the right policies in place, AD can step up to meet the UK’s needs in light of declining conventional CO2 sources. The time for the government to prioritize AD is now.

For more information on biogenic CO2 from AD;

ADBA launched the 4^th briefing in its Biogas Insights Series: Biogenic CO2 from AD – Carbon Capture, Storage & Utilisation, at a webinar on 4th July 2023 – access the report and webinar recording here.

Sponsored by Pentair and Future Biogas, this briefing shows how the CO2 from AD can be captured, stored and utilised, the standards that need to be applied and the policies that are in place. It also assesses the existing and emerging markets for bio-CO2 and AD’s production potential, with case studies from Pentair, Future Biogas and others.