Synfuels Plant ammonia production sets records in 2011
October production was the third best production month historically and total production for the year was the third best in the last 10 years.
Basin Electric Power Cooperative
- February 3, 2012
Great Plains Synfuels Plant anhydrous ammonia production and sales totals are in for 2011. The numbers show it was a good year, with production recorded every month. October production was the third best production month historically, and total production for the year was the third best in the last 10 years.
Myria Perry, senior process engineer, said in October, 34,148 tons were produced, with a total of 248,938 tons produced for the year.
“Not only did we make a lot of anhydrous ammonia,” Perry said, “but that ammonia was worth a lot more in 2011.” Net income before taxes from the sale of 240,690 tons of anhydrous ammonia last year was more than $55.8 million.
Steve Liebelt, marketing manager, said the demand for agriculture tons was very strong, with more than 51 percent of sales going to customers in North Dakota. Ammonia was delivered to 15 states in 2011.
Comparatively, in 2001, 292,194 tons of anhydrous ammonia were produced, and in 2002, 270,590 tons were produced — the two highest production years recorded in plant history. However, Perry notes that product was sold in the industrial market during those years, and margins were not as high.
October 2007 remains the highest production month with 34,860 tons recorded, and May 2008 is second highest with 34,378 tons produced.
Liebelt said demand for ammonia in North Dakota in 2012 looks stronger than last year. “The increased demand for nitrogen is because of higher commodity prices,” he said. “With the potential of an early spring, demand for ammonia could increase due to additional time to apply.”
The Synfuels Plant will be adding a 30,000-ton storage tank. Construction of the tank is expected to begin in March, with completion slated by spring 2013. The additional storage will help capitalize on the better margins throughout the year.
Because ammonia storage will reach near capacity soon, the ammonia plant is set to be taken off line in early February. While the plant is down, necessary maintenance work will be completed so the plant is ready to produce ammonia again for the spring season.
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