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1.0 INTRODUCTION

Ammonia is one of the important chemicals and widely produced in Malysia

as one of the raw materials for the production of fertilizers. Ammonia gas is

flammable and react exothermically with acids and water. It is firstly produced

through Harber-Bosch process in the year of 1913. The demand for the fertilizers

increase from time to time since agricultural industries has becoming one of the

world productions. In Malaysia, Petronas is one of the company that widely produce

ammonia as a raw material for the production of urea. In this process, ammonia is

produced from the reaction of nitrogen and hydrogen under high temperature and

high pressure (Schmidhuber, 2013). Hydrogen was provided by the reforming

reaction of natural gas mainly methane, CH4. Besides, there are several technologies

in ammonia production including Haldor Topsoe, Kellog’s Brown Root, Uhde and

Linde Ammonia concept. Despite of being the core component in urea production,

ammonia plays a significant role in variety of fields such as fibers and plastics

industries, pharmaceuticals, pulp and paper, mining and metallurgy as well as for

cleaning purpose. Figure 1 shows the typical and commercial process flow diagram

of ammonia plant.

Figure 1: Typical and commercial process flow diagram of ammonia plant

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Source: www.slideshare.net

2.0 BACKGROUND OF PRODUCT

2.1 Physical and Chemical Properties of ammonia

Table 1 shows the physical and chemical properties of ammonia.

Table 1: Physical and Chemical Properties of ammonia

Molecular formula NH3

Molecular Weight 17.031 g mol-1

Boiling Point at 1 atm -33.4°CMelting Point -77.7 °COdor PungentTaste AlkalineColor ColorlesspH 11.6 (1.0N)Critical Temperature Not availableSpecific Gravity (air=1) 0.59Vapor Pressure 114.4 psig at 20°CVapor Density 0.045 Ib/ft3 at 20°C and 1 atmVolatility 100% at 21°CSolubility Highly soluble in waterSource: www.chem.tamu.edu

2.2 Applications of ammonia

Agricultural industries are the major users of ammonia and ammonia is most

commonly used as a fertilizer.

Ammonia is a very valuable source of nitrogen that is essential for plant

growth.

Ammonia is used as a source of protein in livestock feeds for animals such as

cattle, sheep and goats.

Ammonia is used as a pre-harvest cotton defoliant, an anti-fungal agent on

certain fruits and a preservative for the storage of high-moisture corn.

Ammonia also being used as refrigerant.

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3.0 MARKET SURVEY

Figure 2 shows the world ammonia supply and demand starting from 2010

until 2015. Figure 3 shows the local demand of ammonia while Figure 4 shows the

world natural gas (raw material for the production of H2) and ammonia prices.

2010 2011 2012 2013 2014 20150

50

100

150

200

250World ammonia supply and demand

Demand Supply

Year

Met

ric to

n pe

r yea

r

Figure 2: World ammonia supply and demandSource: www.potashcorp.com

85%

5%5%

5%

Local demand of ammonia

Fertilisers Polyamides nitric acid other

Figure 3: Local demand of ammonia

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2010 2011 2012 2013 2014 20150

100

200

300

400

500

600

700

800World Natural gas and ammonia prices

NG Ammonia

Year

US D

olla

r per

tonn

e

Figure 4: World Natural gas and ammonia pricesSource: www.potashcorp.com

Based on the Figure 2, the world demand of ammonia increase slowly from

2010 until 2015. Although the price of ammonia and natural gas decrease in 2015

based on Figure 4 due to the economy crisis in the world, the demand for ammonia

still remains stable. Ammonia is very important and highly demand for production of

fertilizers in order to increase the crop production. Based on Figure 3, ammonia

production in Malaysia commonly used to produce fertilizer such as urea. Petronas

urea plant produced its own ammonia as a raw material for the production of urea

fertilizers.

Table 2: List of suppliers and competitors of ammonia plant in Malaysia

Company Natural Gas (Suppliers) Ammonia (Competitors)

Petronas Gas Berhad 250 million scfd -

Petronas Chemicals Ammonia Sdn. Bhd. (PCASB) -

450,000 tpa

Petronas Chemicals Fertilizer Kedah Sdn. Bhd. (PCFKSB) -

375,000 tpa

Petronas Bintulu - 400,000 tpa

Sabah Ammonia and Urea (SAMUR)

- 740,000 tpa

*scfd is standard cubic feet per day, *tpa is tonnes per annumSource: www.petronas.com.my

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4.0 PROCESS SELECTION

There are a few routes in the production of ammonia.

Table 3: Chemical PricesChemical

Molecular Weight (g/mol)

Chemical Formula

Cost(US dollar/kg)

Sources

Nitrogen 28.02 N2 0 AirHydrogen 2.02 H2 0.14 Natural gasAmmonia 17.031 NH3 0.473 Icispricing reportAmmonium chloride 53.491 NH4Cl 0.2 Shandong Xinguan

Fertilizer TechnologyCalcium oxide 56.0774 CaO 0.19 Tian Health Chemical

Co, LtdCalcium chloride 110.98 CaCl2 0.175 Icispricing reportCalcium hydroxide 74.093 Ca(OH)2 0.19 Xiamen Diatei Chem

Co. LtdHydrogen chloride 36.46 HCl 0.6 Icispricing report

Route 1: Direct Combination of Two Elements, Nitrogen and Hydrogen

N2 + 3H2 → 2NH3

Reactants Products

Overall Chemical Equation N2 H2 NH3

kmole 1 3 2Molecular Weight (kg/kmol) 28.02 2.02 17.031

Weight 28.02 6.06 34.062Weight / Weight NH3 0.823 0.178 1Price of Component ($/kg) 0 0.14 0.473Gross profits ($/kg NH3) 0.473(1) – 0.14(0.178) = 0.45 Route 2: Reaction of Ammonium chloride with calcium oxide

2NH4Cl + 2CaO → CaCl2 + Ca(OH)2 + 2NH3

Reactants ProductsOverall Chemical Equation 2NH4Cl 2CaO CaCl2 Ca(OH)2

2NH3

Kmole 1 2 1 1 2Molecular Weight (kg/kmol) 53.491 56.0774 110.98 74.093 17.031

Weight 106.982 112.155 110.98 74.093 34.062Weight / Weight NH3 3.14 3.293 3.258 2.175 1Price of Component ($/kg) 0.2 0.19 0.175 0.19 0.473

Gross profits ($/kg 0.473(1) + 0.19(2.175) + 0.175(3.258) – 0.19(3.29) –

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NH3) 0.2(3.14) = 0.203

Route 3: Decomposition of Ammonium Chloride

NH4Cl → NH3 + HClReactants Products

Overall Chemical Equation NH4Cl NH3 HClKmol 1 1 1Molecular Weight (kg/kmol) 53.491 17.031 36.46Weight 53.491 17.031 36.46Weight / Weight NH3 3.14 1 2.14Price of Component ($/kg) 0.2 0.473 0.6Gross profits ($/kg NH3) 0.6(2.14) + 0.473(1) – 0.2(3.14) = 1.13

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Table 4: Reaction paths

Aspect Direct Combination of Two Elements, Nitrogen and Hydrogen

Reaction of Ammonium chloride with calcium oxide

Decomposition of Ammonium Chloride

Overall Reaction Path

N2 + 3H2 → 2NH3 2NH4Cl + 2CaO → CaCl2 + Ca(OH)2

+ 2NH3

NH4Cl → NH3 + HCl

Raw Material Nitrogen; Hydrogen Ammonium chloride; Calcium oxide Ammonium ChlorideCatalyst iron - -Gross Profit ($/kg) 0.45 0.20 1.13Advantages Raw Material Cost:

Abundant and relatively inexpensive, easy obtain

Others:Excess raw material can be

recycle, 99.9% product purity

- -

Disadvantages - Raw Material Cost:Relatively expansive, hardly obtain

Others:Corrosive solid of CaO

Raw Material Cost:Relatively expansive, hardly

obtainOthers:

HCl impart acute potential health effects, carcinogenic

Technology Well developed Not well developed Not well developedJustification From the above analysis, decomposition of ammonium chloride is the most economically ideal, followed by

direct combination of nitrogen and hydrogen and finally reaction of ammonium chloride with calcium oxide. But according to the advantages and disadvantages, the production of ammonia by using nitrogen and hydrogen is much better compared to the other two techniques. Besides, those two techniques appear impractical since the technology not well developed. In order to remain sustainable in the future, direct combination of nitrogen and nitrogen is the best solution

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5.0 POTENTIAL SITE ANALYSIS

Table 5: Potential sites for the production of ammonia in Johor

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Table 6: Comparison between sites proposed for Ammonia PlantArea Proposed Gebeng Phase IV, Pahang Tanjung Langsat, Johor

Tax Incentives The principal incentives in the manufacturing sector are contained in the Promotion of Investment Act, 1986 and the Income Tax Act, 1967.

General IncentivesPioneer StatusInvestment Tax Allowance (ITA).-Reinvestment Allowance (RA).

The principal incentives in the manufacturing sector are contained in the Promotion of Investment Act, 1986 and the Income Tax Act, 1967.

General IncentivesPioneer StatusInvestment Tax Allowance (ITA).-Reinvestment Allowance (RA).

Location 40 km from Kuantan. 5 km from Kuantan Port

45 km from Johor Bahru. 5 km from Johor Port.

Types Of Nearby Industry

Chemical & Petrochemical Heavy Industry Chemical & Petro-chemical

Land Price * RM 80 Million RM 40-60 Million

Area Still Available * Around 100 arces Estimation area about 75 acres

Feedstock PGU pipelines PGU pipelines

Raw Materials Supplier Petronas Gas Berhad Petronas Gas Berhad

Electricity Tenaga Nasional Berhad Tenaga Nasional Berhad Sultan Iskandar Power Station

Electric Tariff PeninsularMalaysia Cost / kWhTariff D (low voltage) 34.50 sen/ kWhTariff E1 (medium voltage) 29.60 RM/ kWhTariff E2 (medium voltage) 37.00 RM/ kWhPeak period: 0.800-2200 35.50 sen/ kWhOff-peak period: 2200-0800 21.90 sen/ kWhTariff E3 (high voltage)Peak period: 0800-2200 33.70 sen/ kWhOff-peak period: 2200-0800 20.20 sen/ kWh

PeninsularMalaysia Cost / kWhTariff D (low voltage) 34.50 sen/ kWhTariff E1 (medium voltage) 29.60 RM/ kWhTariff E2 (medium voltage) 37.00 RM/ kWhPeak period: 0.800-2200 35.50 sen/ kWhOff-peak period: 2200-0800 21.90 sen/ kWhTariff E3 (high voltage)Peak period: 0800-2200 33.70 sen/ kWhOff-peak period: 2200-0800 20.20 sen/ kWh

Water Supply Loji Air Semambu Syarikat Air Johor (SAJ)

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Water Tariffs (Industrial)

0-227 m3 for RM0.92/m3

>227 m3 for RM0.84/m3 0-20 m3 for RM0.80/m3

20-35 m3 for RM2.00/m3

>35 m3 for RM3.00/m3

Logistic

Road Facilities Port Facilities

Main road to Kuala Lumpur, Johor Bahru and Singapore. A railway links is scheduled to connect Kuantan Port-

Gebeng-Kemaman Port-Kerteh-Tok Arun. Kuantan Port Transport under Kuantan Port Consortium.

Pasir Gudang to Kim Kim River. Bridge over Kim Kim River. Bridge to Johor River. North – South Highway. Pasir Gudang-Tg. Kupang-Tuas Highway. Johor Port Sdn. Bhd. Tanjung Langsat Port

Airport Kuantan Airport Senai International Airport Changi International Airport

Labour Approximately 1,500 to 3,000 people are expected to be involved during peak construction phase

150-250 permanent staff 500 temporary staff The manpower can be obtained from local educational

institutions such as Universiti Teknologi Malaysia (UTM), Industrial Training Institute (ITI) and Johor Skills Development Center (JSEDC).

Approximately 1,500 to 3,000 people are expected to be involved during peak construction phase

150-250 permanent staff 500 temporary staff The manpower can be obtained from local educational

institutions such as Universiti Teknologi Malaysia (UTM), Industrial Training Institute (ITI) and Johor Skills Development Center (JSEDC).

Market Supply Strategic place which located near to the port Strategic place which located near to the port Near to Tanjung Langsat Industrial Complex and Pasir

Gudang Industrial Park

Based on Table 6, Tanjung Langsat has been chosen as our plant site location because its land price is cheaper than Gebeng Industrial Estate

(IV). Strategic location of Tanjung Langsat provides advantage in term of transportation. There is not only obtain an excellent road facilities,

Tanjung Langsat Port and Johor also located nearby. This will enhance the import and export activities to South East Asia.

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