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Economics of coal-based urea plant: Find out why promoters are finding the idea viable
Dec 14: While being near an LNG facility, this fertilizer company is planning to set up an innovative coal-based ammonia-urea unit, following the Chinese example. China produces the bulk of its fertilizers from coal, instead of gas.
8Clearly, fertilizer project promoters are increasingly enamored with the economics of using coal instead of natural gas as a feedstock. While demand-supply forces are expected to push the price of gas up, those of coal are expected to stay down. Coal-based urea units had failed in India earlier, but Chinese companies have now shown the way to stay viable. While it is this government that pushed through a public sector coal-based urea unit, the idea seems to have been picked up by the private sector.
8The risk in using coal, however, is the possibility of imposition of a high carbon tax, but this promoter's logic is that as long as coal-based power has to stay viable in India, a syn gas based fertilizer unit will also stay economical.
8The point to note is that standard ammonia-urea unit consumes around 2.4 mmscmd of gas, and if a raft of coal-based units come up, there will be that much less demand for gas.
8Cost - Rs 7484 Crore
8Project Event: The internal discussion process is ongoing for a Process licensor and an EPC contractor. It will take a minimum two to three months for the release of RFQ, 
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Ammonia-Urea Brownfield Project
8Cost - Rs 6000 Crore
8Project Event: The purchase of major equipment and services is ongoing and tendering for Civil and Structural works for Main Utility & Substation has come out and the bid due date is extended from 12 December to 26 December 2018. Price bid has been opened for Effluent Treatment Plant and Sewage Treatment plant finalization is due in January 2019. 
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