CF Fertilisers has put forth a proposal to permanently close its ammonia plant located at the Billingham Complex.
The company plans to continue producing ammonium nitrate (AN) fertiliser and nitric acid at the Billingham site by importing ammonia, a practice that has been in effect for the past ten months after the temporary shutdown of the plant in August 2022.
The proposal comes in light of CF Fertilisers UK’s assessment that manufacturing ammonia at the Billingham Complex may not remain cost-competitive in the long run compared to importing ammonia.
This forecast is mainly driven by projected high natural gas prices in the UK relative to other regions and the impact of carbon costs.
Furthermore, recent shutdowns of industrial customers’ operations in the UK, which were significant consumers of ammonia, have created a supply-demand imbalance for ammonia production at the Billingham Complex, the company said.
CF Fertilisers produces carbon dioxide as a by-product of its fertiliser production – the gas is supplied to a large range of sectors, including NHS, nuclear power plants and the food industry.
National Farmers’ Union Deputy President Tom Bradshaw has raised concerns about the closure of a fertiliser production site.
Mr Bradshaw explained that the decision to close the site could have significant implications for the UK farming industry, particularly in terms of fertiliser availability and domestic food security.
Tom Bradshaw pointed out that fertilisers are a crucial element of domestic food production and security.
Fertilisers play a vital role in enhancing crop yields and ensuring efficient agricultural practices.
Mr Bradshaw said: “It’s important that government now look closely at how this shift to a reliance of imported ammonia could impact our domestic food production and highlights the need to maintain access to all nitrogen fertiliser products including urea.”
