WHAT IS IT?
Ammonia (NH₃) is a colourless gas with a pungent odour, produced by combining nitrogen (from air) and hydrogen (from natural gas) via the Haber-Bosch process. It is the second most produced chemical globally and the foundation of the entire nitrogen fertilizer industry.
HOW IS IT MADE?
Haber-Bosch Process: N₂ + 3H₂ → 2NH₃ (at 150–300 bar, 400–500°C, iron catalyst)
Feedstock: Natural gas (steam methane reforming to produce hydrogen). About 1.8–2.0 Gcal of natural gas per tonne of ammonia.
Green Ammonia: H₂ from electrolysis (using renewable electricity) + N₂ → NH₃. Emerging but currently expensive.
FORMS
Anhydrous Ammonia: 100% NH₃, liquefied under pressure. Most efficient nitrogen source (82% N). Directly injected into soil in some markets.
Aqueous Ammonia (Ammonia Solution): 25–30% NH₃ dissolved in water. Safer to handle, lower N content.
KEY USES
Urea production (largest use — ~50% of ammonia)
Ammonium nitrate (AN) and ammonium sulphate (AS)
DAP/MAP and other phosphate fertilizers
Nitric acid → explosives, adipic acid, nylon
Refrigerant (R717) in industrial cold storage
Direct application fertilizer
Hydrogen carrier for energy transport (future)
TRADE CORRIDORS
Major exporters: Russia (Togliatti → Black Sea), Trinidad & Tobago, Saudi Arabia, Indonesia, Malaysia
Major buyers: India, Morocco, USA, Southeast Asia, East Africa
Tetra relevance: East Africa fertilizer corridor — ammonia is upstream of all N fertilizers.
PRICING BASIS
Benchmarks: FOB Yuzhny (Ukraine/Black Sea), FOB Arab Gulf, CFR Tampa (US). Highly correlated with European natural gas prices — gas = 70–80% of production cost.
SPECIFICATIONS (Anhydrous)
NH₃ purity: min 99.5%
Water: max 0.5%
Oil: max 5 ppm
Pressure (at 20°C): ~8.6 bar
SAFETY
Toxic gas — TLV 25ppm, IDLH 300ppm. Leaked ammonia forms explosive mixture in air (15–28%). Requires pressure vessels, gas detection systems, emergency showers. IMDG Class 2.3 (toxic gas).