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KBR wins FEED contract for Indiana Fertilizer complex

Ohio Valley to build $1 billion ammonia-urea plant

Ohio Valley Resources LLC (OVR) awarded KBR for the license and the front end engineering and design (FEED) contract of fertilizer project in Indiana.

As part of the FEED contract, KBR is also mandated to the call for tender of the engineering, procurement and construction (EPC) contract to be awarded on lump sum turn key basis.

According to the US Economic Research Service of the United States Department of Agriculture (USDA), USA is the world largest consumer and importer country of nitrogen fertilizer with 10.79 tonnes imported in 2011 representing 54% of the total needs.

In parallel the development of the giant Marcellus shale gas formation in this region provides a nearly unlimited source of supply of natural gas as feedstock.

In addition the low prices of the natural gas in USA, below $3 per million British Thermal Unit (mmbtu) at Henry hub, offer unique commercial and financial perspectives to the fertilizer industry.

In this favorable context, Ohio Valley is planning to build a fertilizer complex in Indiana.

According to actual investigations, the proposed site should be located in north of Rockport, in the Spencer County, Indiana.

This 150 acres greenfield would benefit from existing infrastructures with rail and highway accesses along a river.

From the feasibility study, Ohio Valley is planning to build a fertilizer complex to produce:

 – 2,420 t/d of ammonia

 – 3,000 t/d of urea ammonia nitrate (UAN)

 – 300 t/d of diesel exhaust fluid (DEF)

The diesel exhaust fluid is used as additive to reduce diesel engines emissions.

Regarding the environment, a part of the ammonia will be supplied to the local utilities to reduce the emission of the green house gases in their coal-fired power plants using selective catalytic reduction units.

KBR to provide ammonia Purifier technology

For this Indiana fertilizer project, Ohio Valley selected the technologies from the:

 – Houston-based KBR for the ammonia

 – Atlanta-based Weatherly Inc. for the urea ammonia nitrate

KBR will provide its skill-of-art ammonia proprietary Purifier process designed to operate at high energy efficiency and with better reliability compared with conventional fertilizer units.

KBR had the opportunity to test the performances of its Purifier process at large scale with the Burrup fertilizer plant in operation since 2006 in Australia. 

Weatherly, in addition to its license, will design the urea plant.

Regarding the off-site, utilities and infrastructures, Ohio Valley selected the local Morley and Associates of Newburgh, Indiana.

In the project set up organized by Ohio Valley, Weatherly and Morley and Associates will work as KBR’s subcontractors.

As Ohio Valley is still investigating alternative locations in Kentucky, the tax incentive package is not completed.

For Ohio Valley as well as for USA and the farming sector of the Eastern Corn Belt, the Indiana fertilizer project represents a major step forward to increase the local added value and reduce agriculture production costs as the result of the value chain of the shale gas industry.

Estimated to mobilize $1 billion capital expenditure, Ohio Valley Resources (OVR) and KBR are planning the complete the FEED work in 2013 in order to issue the call for tender of the EPC contract in following and the full completion of the Indiana fertilizer project in 2016.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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