CF Fertilisers UK Unveils Bold Plan to Shut Down Ammonia Plant at Billingham Complex

Billingham: The Ammonia plant at CF Fertilizers' Billingham Complex may be permanently shut down, the company has proposed. Following its decision to temporarily shut down the facility in August of last year, it aims to carry on producing Ammonium Nitrate (AN) fertilizer and Nitric acid at the Billingham site using imported Ammonia, as it has done for the previous 10 months.

This proposed closure, according to the company, is intended to "more efficiently service its customers in the country" and ensure the long-term viability of its operations in the UK. The production of Ammonia at Billingham will not be cost-competitive over the long term compared to importing Ammonia, according to CF Fertilizers UK, a subsidiary of CF Industries Holdings, Inc. This is primarily because of anticipated high natural gas prices in the UK relative to other regions and the impact of carbon costs.

A supply-demand mismatch for Ammonia production at the Billingham Complex has been caused by the closure of industrial clients' UK activities in recent years, it was further said. These operations had used large amounts of Ammonia for their operations. It expects that going forward, production and sales of Ammonium Nitrate fertilizer and Nitric acid for its UK agriculture and chemicals customers will be more cost-competitive and efficient thanks to a plentiful supply of Ammonia available for import around the globe, including from its North American production network.

Up to 38 jobs could be lost because of the proposed closure in Billingham, while the company hopes to move some of these positions elsewhere in its business. This choice is alarming since it exposes fertiliser industry to increased global instability.

The availability of fertilizers plays a vital role in ensuring domestic food security. However, depending on imported Ammonia from global markets exposes British fertilizer production to potential long-term risks. Fertilizer is an essential resource that plays a crucial role in enabling British farmers and growers to produce food for the nation. The government should closely examine the potential impact of relying on imported Ammonia for domestic food production. This emphasizes the importance of maintaining access to all Nitrogen fertiliser products, including urea.

CF Industries is to sustainably feed and power the globe with sustainable energy. Path to decarbonize Ammonia production network, the largest in the world. This will enable green and blue Hydrogen and Nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities. Strategy to take advantage of special abilities to hasten the global transition to clean energy is supported by manufacturing facilities in the United States, Canada, and the United Kingdom, an unrivaled storage, transportation, and distribution network in North America, and logistics capabilities enabling a global reach.