Fertilizer Plant

Background

• In Argentina, the development of agricultural production given the increasing demand for raw materials in the international arena and intensive land use , such as the constant incorporation of technology into the field, has generated a growing use of nitrogen fertilizers to point that Argentina now imports nearly 60 % of the fertilizers consumed. For these reasons, it becomes evident the need for active policies for provision of fertilizer needed to increase production yields .
• In the country there are only 2 fertilizer plants , one located in the town of San Lorenzo in the province of Santa Fe and another located in the city of Bahía Blanca , they fail to supply the national demand.
• This scenario , coupled with the advantage of having in the province with a heavy water plant with the possibility of being coupled to a urea manufacturing plant at very competitive costs , requires a strategic decision to build a new fertilizer plant , large-scale , localized near the village of Arrochar.
• PIPA and Sulzer Experts have confirmed the technical feasibility of the opening of the PIPA for fertilizer production . The common use of the facilities of ammonia causes a decrease in the production of heavy water of only 2% . However it has 2 ammonia reactors capable to supply a fertilizer plant with capacity to produce up to 2 million tonnes of urea per year.
• Studies conducted by recognized institutions , projections indicate demand for the next 10 years to double the supply of this plant.
• The fertilizer market would supply the Neuquén project comprises mainly : Argentina , Brazil and Chile. It is estimated that there are also important niche markets in Asia , Mexico , North America or the European Union itself . Moreover Neuquén has natural gas and rail facilities near Arrochar and is equidistant from its two main foreign markets : Brazil and Chile.

Study Area

Heavy Water Plant (PIPA) is located in Arrochar, Neuquén Province on the Limay River and very close to the power plant of the same name, which has 120 MW of installed capacity. This gives significant advantages to couple it a production of nitrogen fertilizers.

Highlights

The project is based on the construction and operation of a plant for production of nitrogen fertilizers integrated with independent providers for the use of excess ammonia produced by the plant owned by the CNEA, to produce one million ton of urea per year.
The project is of significant importance for the province as it allows the use of existing facilities in the PIPA for the production of ammonia and the installation of a urea production plant of one million tons per year, similar to the size of the one located in the port of Bahia Blanca.
The investments involved are in the range of $ 550 million, or 35% lower than a greenfield site - allowing you to produce at very competitive costs and place your production in the markets of Brazil, Chile and Argentina, doubling the current surface sown.
From the social perspective the plant will result in thousands of new jobs, mainly of highly qualified personnel.
Desde el punto de vista social la planta dará lugar a mil nuevas fuentes de trabajo, principalmente de personal altamente calificado.

Actions carried

In 2009 the Government of the Province, through ADI-NQN, presented to the authorities of the CNEA and the Ministry of Federal Planning Office, a new scheme of financing this project, which reduces the risk factors that led to the failure of previous calls for investors.

Actions to be undertaken

The Province is waiting for the response of the Nation in order to achieve an agreement, which would redefine the project outline and define a new public call for investors. This year will insist with this request to the national authorities.
ADINQN is bound to the preparation of technical and economic bases of Public Call Investors.

Competitive Advantages of the project

• Availability of gas and electricity in the vicinity of the plant.
• rail transportation infrastructure near the plant.
• Proximity to ports and major local and regional markets (Brazil and Chile).
• Availability of logistic support services to the construction phase of the plant.
• Significant savings in initial investment.
• Reduced operating costs.
• Availability of land and consolidated studied.
• Availability of water, collection and treatment services.
• Availability of trained technical and professional staff.
• Utilization of emergency services.
• Availability of medical services.
• Optimizing the use of machinery and maintenance workshops.
• Training shared.
• Integrated Security Services.
• Employment optimized logistics services.
• Specialized services laboratory.
• Possible expansion of the installed capacity.

Direct benefits

• Generation of approximately 1,000 new jobs.
• Mobilization of service activities that have resulted, ultimately, affected due to lower industry activity associated with hydrocarbon production in the Province.



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