The commissioning is expected to increase production by 25% and energy consumption is expected to be reduced by 12%
Mangalore Chemicals and Fertilisers Ltd., (MCF) on Friday, November 4, announced the successful implementation of the Ammonia Energy Improvement Project. The company of over half a century has thus achieved energy efficiency on a par with modern plants.
MCF, a subsidiary of Zuari Agro Chemicals Ltd., an Adventz Group company, in a release stated that the project was implemented at a capital cost of over ₹400 crore and is expected to deliver significant improvement to the bottom line.
It switched over to liquefied natural gas (LNG) as the raw material for urea production from naphtha in December 2020 after it began receiving the gas from Kochi. With the government policies further mandating urea manufacturing companies to reduce the energy norms further from December 2025, the company converted the vintage plant to a highly energy-efficient one on par with modern plants to comply with the mandate of the Department of Fertilisers to achieve the Target Energy Norm.
Renowned technology providers in ammonia undertook a comprehensive study of the existing plants and on their suggestion the project was completed with the support of global and domestic suppliers. While ammonia production would increase by 25%, energy consumption would get reduced by about 12% after the commissioning. The MCF expects an improvement in operating margins with a further reduction in energy consumption from the present 5.5 giga calories per tonne. It would also have a positive impact on the environment in the long run.
Established in the early 1970s, the MCF is the only manufacturer of urea and complex fertilizers in Karnataka catering to farmers’ requirements in Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, and Telangana.
MCF Chief Financial Officer TM Muralidharan said, “On account of shutdown for the project commissioning, there is a negative financial impact for the quarter and half year ended September 30, 2022. However, with all the plant and production parameters in line with the new performance standards, the bottomline for the rest of the year is expected to show significant improvements.”