Questions around this news
What does the Orica–Fertiberia collaboration cover?
The companies signed a memorandum of understanding to explore ways of bringing Fertiberia-produced low-carbon technical ammonium nitrate to mining and civil infrastructure customers across Europe, the Middle East and Africa. The release says the collaboration focuses on blasting solutions and is intended to support both organisations’ sustainability ambitions.
How is green hydrogen used to produce low-carbon TAN?
Green hydrogen is hydrogen made using renewable electricity to split water, rather than hydrogen produced using fossil fuels. In the process described in the release, it replaces natural gas in producing technical ammonium nitrate. The release characterizes Fertiberia’s production approach as pioneering, but does not provide details about its equipment or the emissions associated with production.
What is technical ammonium nitrate used for?
Technical ammonium nitrate, or TAN, is an industrial chemical used in explosives for blasting, including in mining and civil infrastructure work. The release describes the collaboration as a way to bring low-carbon TAN to customers seeking more sustainable blasting solutions in those sectors.
What is a memorandum of understanding?
A memorandum of understanding is a document that records parties’ shared intentions and outlines areas in which they plan to cooperate. Its legal effect depends on its wording and the circumstances; it does not necessarily create the same obligations as a detailed commercial contract. In this case, the release says the companies signed one to explore solutions for bringing low-carbon TAN to regional markets.
September 21, 2023 -- Orica and Fertiberia have announced a collaboration to bring low-carbon Technical Ammonium Nitrate (TAN) to customers interested in sustainable blasting solutions in the region. This innovative approach is part of both organisations’ commitment to utilising and developing cleaner alternative products and supporting the energy transition, together.
At the EFEE conference in Dublin, Orica and Fertiberia signed a memorandum of understanding to work together to explore solutions to bring low-carbon TAN, produced by Fertiberia in a pioneering way with green hydrogen to replace natural gas, to the mining and civil infrastructure markets across Europe, Middle East, and Africa. The collaboration aligns with both organisations’ net zero sustainability ambitions, and wide-ranging customer benefits are expected to be realised through two leading players in their respective industries working together.
Across its various uses, the demand for TAN is expected to continue to grow steadily into the future. Low carbon TAN has the potential to transform the industry, as it provides a more sustainable and efficient solution to traditional TAN.
Javier Goñi, CEO of Fertiberia, commented: “This is a unique collaboration in Europe. We are the first company to produce low-carbon TAN on an industrial scale from green hydrogen – instead of natural gas – in Europe and the world. The collaboration with Orica shows us that we are on the right track to lead an initiative that demonstrates nowadays what the industry of the future will look like. Our collaboration will be an important development in the worldwide effort to become as sustainable as possible.”
Orica President for Europe, Middle East and Africa James Bonnor said:
“This is another step towards achieving our sustainability goals and collaborating for progress with like-minded organisations. For the first time, low-carbon TAN for use in the mining and civil infrastructure industries will ensure operations are more sustainable into the future, and we’re excited for this next chapter and supporting our customers overall ESG goals. We believe the combination of technology, decarbonisation, and sustainability will drive the next phase of growth for Orica and the entire industry.”
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At a glance
- Company
- Orica and Fertiberia
- Announcement
- Partnership
- Location
- Dublin
People
- Javier GoñiCEO of Fertiberia
- James BonnorOrica President for Europe, Middle East and Africa