A US $ 2bn gas-fired plant is set to be constructed in Mozambique by Norwegian fertilizer maker Yara International. The company also intends to seek partners to share the costs.
The mega project was awarded to Yara International in January and this initiative will make ammonia and urea from the country’s gas output, saying the firm could produce up to 1.3-million metric tons of fertilizers annually.
The fertilizer project has seen limited progress so far and has no construction time frame but discussions on a development programme were continuing, Yara CEO Svein Tore Holsether.
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“The value of the project, if I use industry benchmarks, will be about US $2-billion investment,” he said, adding that it was too early to say if Yara would develop the project alone.
Once developed, Yara will have the ability of using between 80-million and 90-million cubic feet of natural gas per day to produce ammonia and urea. In addition to making fertilizers, the site would have a power plant with capacity of 50 MW.
Mozambique intends to reduce fertilizer imports that are now vital for its agricultural industry, and replace them with local products made from its natural gas resources.
Yara, which is seeking acquisitions outside Europe, has been considering assets in Africa as well. It delivers profitable and responsible solutions for agriculture and the environment.
Yara’s knowledge, products and solutions grow farmers’, distributors’ and industrial customers’ businesses profitably and responsibly, while protecting the earth’s resources, food and environment.
