Cost Comparison of Ocean Shipment of Anhydrous Ammonia and Solid Urea Versus Shipment of Urea-Ammonia Solution
Achorn, Frank P.
Walkup, Harold G.
This document presents a study comparing the costs of production and ocean shipment of solid urea and anhydrous ammonia with urea-ammonia solution. The study aims to determine the costs involved in providing solid urea and various grades of urea-ammonium phosphate materials to four destination countries. The production and shipment costs are analyzed for different destination points, including a direct shipment of finished products and the decomposition of urea-ammonia solution into solid urea and ammonia. The study focuses on the Gulf Coast area of the United States to analyze nitrogen-containing primary materials. The document outlines the production and shipment processes for solid urea, anhydrous ammonia, and urea-ammonia solution, considering shipping methods, storage, and handling costs. The destination countries and ports considered in the analysis are Santos, Brazil; Bombay, India; Lagos, Nigeria; and Istanbul, Turkey, which provide a range of conditions and factors such as length of haul, port facilities, and labor costs. The cost analysis is based on engineering cost estimates for modern plants and reliable sources for storage, handling, and shipping costs. The document assumes grassroots plants and accounts for the increased costs of constructing plants overseas. Various cost factors, including working capital, operating labor, maintenance, overhead costs, depreciation, local taxes, and insurance, are considered in the analysis. The estimated costs of manufacturing anhydrous ammonia, urea solution, and urea-ammonia solution are presented, including fixed and variable costs per ton. The analysis includes a breakdown of costs for raw materials, utilities, operating supplies, labor, maintenance, and overhead. The total manufacturing cost per short ton and metric ton is calculated for each product.