CF Fertilisers UK has announced its intention to temporarily halt ammonia production at the Billingham Complex due to market conditions. CF Fertilisers UK intends to use the site’s capability to import ammonia to enable it to continue to run its ammonium nitrate (AN) and nitric acid upgrade plants. The Company expects to fulfil all ammonia and nitric acid contracts and all orders of AN contracted for delivery in the coming months.

The move could reduce carbon dioxide supply crucial to the food industry. The Billingham,plant is the main source of the UK’s CO2, which is used to stun pigs and chickens for slaughter, as well as in packaging to extend shelf life and for dry ice that keeps items frozen during delivery. Gas is the top input for most nitrogen fertilizer, including ammonia, and CO2 is a byproduct of the production process.

At current natural gas and carbon prices, CF Fertilisers UK’s ammonia production is uneconomical, with marginal costs above £2,000 per tonne and global ammonia prices at about half that level. The current cost of natural gas at NBP is more than twice as high as it was one year ago, with the NBP forward strip suggesting that this price will continue to rise in the months ahead.

The Company has notified customers who purchase carbon dioxide (CO₂) on a contract basis from the Billingham Complex about the impending temporary halt of ammonia production. Once the ammonia plant is safely shut down, CO₂ production, which is a byproduct of the ammonia production process, will stop until the plant is restarted.

The Company has not yet determined the exact date when it will begin the temporary shutdown of the ammonia plant. At this time, CF Fertilisers UK do not anticipate any impact on employees regarding this announcement given the substantial level of activity that will continue to occur at Billingham.