IPP to Market BASF Ammonia, Methanol, and Melamine Plants in Germany

07.05.2024 - BASF and International Process Plants (IPP), a global broker of process plants and equipment, have entered an agreement to market three recently abandoned ammonia, methanol, and melamine plants located at BASF’s Verbund site in Ludwigshafen, Germany.

In the wake of structural adjustments at its Ludwigshafen facility, aimed at maintaining a competitive edge in the evolving European market, BASF has made its plants available. This move was initially announced in February 2023. Despite these changes, BASF will persist in the production of ammonia and methanol at other units within the Ludwigshafen Verbund site. The financial specifics of the agreement between the two companies remain confidential, as mutually agreed upon.

The deal encompasses the consolidated production facilities for ammonia (with an annual capacity of 380,000 metric tons, mt/y), methanol (165,000 mt/y), and melamine (51,000 mt/y). IPP is presenting these top-tier production units for relocation and sale to eligible purchasers who have projects involving such assets and are seeking opportunities for reduced capital expenditure and expedited project implementation timelines.

“We are excited to add these world-class ammonia, methanol, and melamine plants to our portfolio of excellent plants for relocation,” said Ronald Gale, President of IPP. “These facilities represent a significant opportunity for companies seeking to expand their production capacity with existing assets that operate at a high level of energy and raw material efficiency. IPP is committed to finding a new home for these assets in a location with sufficient and economic gas supply or as part of a green ammonia or methanol project where they can continue to operate efficiently and productively.”

“BASF is partnering with IPP on the divestment of the idled ammonia, methanol, and melamine plants to ensure that these well-maintained assets are sustained for chemical production. The units were in operation through 2023 and only shut down in the context of the structural adaptation of our production setup at the Ludwigshafen site. The sale represents a more sustainable and economic approach to the deployment of these production units, and with a net benefit to the global process industry,” said Ruediger von Watzdorf, Senior Vice President Technology, BASF Monomers division.

The 380,000 mt/y ammonia plant consumes 0.97 Tm3 (just under 1 trillion m3) of natural gas as feedstock and fuel per ton of ammonia. The 51,000 mt/y melamine plant consumes 2.6 tons of urea crystal per ton of melamine and has an energy requirement of 0.27 Tm3 of natural gas per ton of melamine. The methanol unit is a synthesis loop that can be used in a green methanol project with available green feedstocks.



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