The new plant, expected to take three years to complete, will produce 100,000 tonnes of ammonia annually, which will be used in the manufacture of fertilisers
Haifa Group, a company producing fertilisers, has awarded an engineering, procurement, construction and commissioning (EPCC) contract to Saipem for the construction of an ammonia plant in Israel.
The contract is worth more than $200m and the plant will be located at Haifa Negev in Mishor Rotem. The facility is expected to produce around 100,000 tonnes of ammonia annually and the construction could take around three years of time.
Saipem’s scope of work includes engineering, procurement, construction and commissioning for the entire production facility.
The new facility is expected to provide a steady supply of ammonia used as a vital material in producing potassium nitrate fertilizer, which is Haifa’s flagship product.
The company plans to use 70% of the production capacity and the remaining 30% will be sold to customers in Israel for a wide range of uses such as fertilisers, pharmaceuticals, paint, refrigerants, synthetic fibres and more.
The construction of the plant is part of Haifa’s expansion and investment plan to double its production capacity at the Haifa Negev plant at Mishor Rotem, and follows the Israeli government’s decision.
The new plant is expected to create hundreds of new jobs
The move is expected to create hundreds of direct jobs and several indirect jobs in the region.
Haifa Group CEO Motti Levin said: “This is a strategic move that strengthens Haifa Group’s position as a world leader in the production and supply of nutrients to plants in the world of precision agriculture. It will contribute to the increase of agricultural yields while maintaining the ecological balance.
“Self-production of ammonia will enable a continuous, stable, and independent supply of the main raw material used by the Haifa Group in the process of manufacturing the company’s high-quality flagship products.
“The establishment of the ammonia plant in Israel is an example of everything that characterises “Haifa”- determination, strength, and initiative.”
As per Haifa, Saipem was selected after conducting an intense tender process. Only four groups are claimed to have reached the final stage of the tender. After examining the proposed solutions, technologies and experience of the bidders, Saipem was selected.
Saipem onshore E&C division chief operating officer Maurizio Coratella said: “This new project strengthens Saipem’s role as a leading player in the construction of fertilizer plants thanks to its exclusive capabilities and technologies and its historical relationship with Haldor Topsoe A/S in the ammonia sector.
“The award of this contract confirms Saipem’s strong focus on Energy Transition while establishing a presence in a very dynamic area with great potential. We are committed to successfully delivering this important project in collaboration with our new client.”