06-05-2024

IPP enters agreement to market ammonia, methanol and melamine plants in Ludwigshafen

BASF and International Process Plants (IPP), a global leader in the acquisition and sale of process plants and equipment, have entered an agreement to market ammonia, methanol and melamine plants located at BASF’s Verbund site in Ludwigshafen, Germany. The plants have become available as BASF implements structural measures at its Ludwigshafen site to ensure competitiveness in a changing European market environment as announced in February 2023. BASF will continue to produce ammonia and methanol in other assets at Ludwigshafen site. The two companies have agreed not to disclose financial details of the deal.

The agreement includes the integrated production assets for ammonia (380,000 metric tons/year), methanol (165,000 metric tons/year) and melamine (51,000 metric tons/year). IPP is offering these world-class production units for relocation and sale to qualified buyers with projects for such assets who are looking for opportunities for lower capex and shorter project execution 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 International Process Plants. “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.”

The 380,000 metric tons/year ammonia plant consumes 0.97 Tm3 of natural gas as feedstock and fuel per ton of ammonia. The 51,000 metric tons/year melamine plant consumes as little as 2.6 tons of urea crystal per ton of melamine and has a low 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.

“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.