1

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, CH 4. Besides, there are several technologies
in ammonia production including Haldor Topsoe, Kellogs 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

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
Molecular Weight
Boiling Point at 1 atm

NH3
17.031 g mol-1
-33.4C

Melting Point
-77.7 C
Odor
Pungent
Taste
Alkaline
Color
Colorless
pH
11.6 (1.0N)
Critical Temperature
Not available
Specific Gravity (air=1)
0.59
Vapor Pressure
114.4 psig at 20C
Vapor Density
0.045 Ib/ft3 at 20C and 1 atm
Volatility
100% at 21C
Solubility
Highly soluble in water
Source: www.chem.tamu.edu
2.2

3.0

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.

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.

World ammonia supply and demand

250
200
150

Metric ton per year

Demand
100

Supply

50
0

2010

2011

2012

2013

2014

2015

Year

Fig
ure 2: World ammonia supply and demand
Source: www.potashcorp.com

Local demand of ammonia

5% 5%
Fertilisers

5%
Polyamides

nitric acid

85%

Figure 3: Local demand of ammonia

other

World Natural gas and ammonia prices

US Dollar per tonne

800
700
600
500
400
NG
300
200
100
0
2010

Ammonia

2011

2012

2013

2014

2015

Year

Figure 4: World Natural gas and ammonia prices

Source: 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)

Petronas Bintulu

375,000 tpa

Sabah Ammonia and Urea

(SAMUR)
*scfd is standard cubic feet per day, *tpa is tonnes per annum
Source: www.petronas.com.my

400,000 tpa
740,000 tpa

4.0

PROCESS SELECTION
There are a few routes in the production of ammonia.

Table 3: Chemical
PricesChemical

Molecular
Weight
(g/mol)

Chemical
Formula

Nitrogen
Hydrogen
Ammonia
Ammonium chloride

28.02
2.02
17.031
53.491

N2
H2
NH3
NH4Cl

Cost
(US
dollar/kg
)
0
0.14
0.473
0.2

Calcium oxide

56.0774

CaO

0.19

Calcium chloride
Calcium hydroxide

110.98
74.093

CaCl2
Ca(OH)2

0.175
0.19

Hydrogen chloride

36.46

HCl

0.6

Sources

Air
Natural gas
Icispricing report
Shandong Xinguan
Fertilizer Technology
Tian Health Chemical
Co, Ltd
Icispricing report
Xiamen Diatei Chem
Co. Ltd
Icispricing report

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

N2 + 3H2

2NH3

Overall Chemical Equation

kmole
Molecular Weight
(kg/kmol)
Weight
Weight / Weight NH3
Price of Component ($/kg)
Gross profits ($/kg NH3)

Reactants
H2
3
2.02

N2
1
28.02
28.02
0.823
0

Products
NH3
2
17.031

6.06
34.062
0.178
1
0.14
0.473
0.473(1) 0.14(0.178) = 0.45

Route 2: Reaction of Ammonium chloride with calcium oxide

2NH4Cl + 2CaO

Overall Chemical
Equation
Kmole
Molecular Weight
(kg/kmol)
Weight
Weight / Weight NH3

CaCl2 + Ca(OH)2 + 2NH3

2NH4Cl
1
53.491
106.982
3.14

Reactants
2CaO
2
56.0774
112.155
3.293

Products
CaCl2

Ca(OH)2

110.98

74.093

110.98
3.258

74.093
2.175

2NH3
2
17.031
34.062
1

Price of Component
($/kg)
Gross profits ($/kg
NH3)

0.19

0.2

0.175

0.19

0.473

0.473(1) + 0.19(2.175) + 0.175(3.258) 0.19(3.29)

0.2(3.14) = 0.203

Route 3: Decomposition of Ammonium Chloride

NH4Cl

NH3 + HCl

Overall Chemical Equation

Kmol
Molecular Weight (kg/kmol)
Weight
Weight / Weight NH3
Price of Component ($/kg)
Gross profits ($/kg NH3)

Reactants
Products
NH4Cl
NH3
HCl
1
1
1
53.491
17.031
36.46
53.491
17.031
36.46
3.14
1
2.14
0.2
0.473
0.6
0.6(2.14) + 0.473(1) 0.2(3.14) = 1.13

Table 4: Reaction paths

Aspect
Overall Reaction
Path
Raw Material
Catalyst
Gross Profit ($/kg)
Advantages

Disadvantages

Technology
Justification

Direct Combination of Two

Elements, Nitrogen and
Hydrogen
N2 + 3H2 2NH3

Nitrogen; Hydrogen
iron
0.45
Raw Material Cost:
Abundant and relatively
inexpensive, easy obtain
Others:
Excess raw material can be
recycle, 99.9% product purity
-

Reaction of Ammonium chloride with

calcium oxide
2NH4Cl + 2CaO
CaCl2 +
Ca(OH)2
+ 2NH3
Ammonium chloride; Calcium oxide
0.20
-

Raw Material Cost:

Relatively expansive, hardly obtain
Others:
Corrosive solid of CaO

Decomposition of Ammonium
Chloride
NH4Cl

NH3 + HCl

Ammonium Chloride
1.13
-

Raw Material Cost:

Relatively expansive, hardly
obtain
Others:
HCl impart acute potential health
effects, carcinogenic
Well developed
Not well developed
Not well developed
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

5.0

POTENTIAL SITE ANALYSIS

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

Table 6: Comparison between sites proposed for Ammonia Plant

Area 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.

The principal incentives in the manufacturing sector are contained

in the Promotion of Investment Act, 1986 and the Income Tax
Act, 1967.

General Incentives
Pioneer Status
Investment Tax Allowance (ITA).
-Reinvestment Allowance (RA).

General Incentives
Pioneer Status
Investment Tax Allowance (ITA).
-Reinvestment Allowance (RA).

Location
Types Of Nearby
Industry

40 km from Kuantan.
5 km from Kuantan Port
Chemical & Petrochemical

45 km from Johor Bahru.

5 km from Johor Port.
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

Electric Tariff

PeninsularMalaysia
Tariff D (low voltage)
Tariff E1 (medium voltage)
Tariff E2 (medium voltage)
Peak period: 0.800-2200
Off-peak period: 2200-0800
Tariff E3 (high voltage)
Peak period: 0800-2200
Off-peak period: 2200-0800
Loji Air Semambu

Water Supply

Tenaga Nasional Berhad

Cost / kWh
34.50 sen/ kWh
29.60 RM/ kWh
37.00 RM/ kWh
35.50 sen/ kWh
21.90 sen/ kWh
33.70 sen/ kWh
20.20 sen/ kWh

Tenaga Nasional Berhad

Sultan Iskandar Power Station

PeninsularMalaysia
Tariff D (low voltage)
Tariff E1 (medium voltage)
Tariff E2 (medium voltage)
Peak period: 0.800-2200
Off-peak period: 2200-0800
Tariff E3 (high voltage)
Peak period: 0800-2200
Off-peak period: 2200-0800
Syarikat Air Johor (SAJ)

Cost / kWh
34.50 sen/ kWh
29.60 RM/ kWh
37.00 RM/ kWh
35.50 sen/ kWh
21.90 sen/ kWh
33.70 sen/ kWh
20.20 sen/ kWh

Water Tariffs
(Industrial)

0-227 m3 for RM0.92/m3

>227 m3 for RM0.84/m3

Logistic

Main road to Kuala Lumpur, Johor Bahru and Singapore.

A railway links is scheduled to connect Kuantan PortGebeng-Kemaman Port-Kerteh-Tok Arun.
Kuantan Port Transport under Kuantan Port Consortium.

Airport

Kuantan 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).
Strategic place which located near to the port

Road Facilities
Port Facilities

Market Supply

0-20 m3 for RM0.80/m3

20-35 m3 for RM2.00/m3
>35 m3 for RM3.00/m3
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
Senai International Airport
Changi International Airport
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).
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.