Page 1 - 2016Progress.March27

Progress 2016
El Dorado NEWS-TIMES – Sunday, March 27
Looking to the future
Business Industry
Ammonia: The new ammonia plant at El Dorado Chemical is a $400,000,000 — 1,150 ton/day plant.
El Dorado Chemical nears completion of huge expansion
Tia Lyons
tlyons@eldoradonews.com
After nearly four years, 1,600 contract workers and almost $1 billion, El Dorado Chemical Company is close to wrapping up a transformative expansion project that is at the forefront of what is perhaps the most signifi- cant industry revival to occur in the U.S. in the past five decades.
El Dorado Chemical — which manufactures industrial and agricultural grade ammonium nitrate and nitric and sulfuric acids — is adding several new chemical produc- tion plants and related facilities and equipment.
Plans for the massive project were announced in the summer of 2012, a few months after an accidental explo- sion jolted the plant — and the community —, destroyed a reactor and caused extensive damage to other facilities, equipment and company business.
No serious injuries were reported in the early morning explosion on May 15, 2012. El Dorado Chemical sustained damage and losses in excess of $100 million.
(A lawsuit filed against an industrial gas contractor for negligence was dismissed last year because it was filed outside the three-year statute of limitations for claims of negligence, United States District Judge Susan O. Hickey ruled.)
‘Turning an unfortunate situation into a fortunate one’
“We’re taking an unfortunate situation and turning it into a fortunate one. The plant’s going to be bigger and better and continue to be a part of the community and help the community grow,” acid production manager Kevin Waldrum optimistically told a local civic club in August 2012 while discussing future plans for El Dorado Chemical.
True to its word, the company has risen like a phoenix from the ashes and pressed forward, undeterred, with the new additions, breaking ground in late 2013.
A new 98 percent nitric acid plant came online last fall and a 1,100 ton-per-day, 65 percent nitric acid plant fol-
lowed by going online in late November 2015.
Both are operating with the necessary certifications,
said general manager Greg Withrow.
Withrow said an ammonia plant, the largest component
of the expansion project, is in its final commissioning stages with an anticipated startup of late April.
The ammonia plant is the biggest new facility to be built on site and accounts for $500 million of the $800 million-plus project.
The project also includes new flares, which when fired up, will be visible to those traveling to and from he Arkansas 7 spur.
The flares are a necessary part of environmental emis- sions control and safety standards and were built with the newest technology available.
“You will see them at startup and during power failures. We will try to get the word out and explain so people won’t be scared,” Withrow said.
Contract workers on the expansion project topped out at 1,600, most of which were from out of state.
“Onsite, there are now 750 contractors, and over the next several weeks, that’s going to begin to dwindle down to 50 out-of-state contractors that’ll finish this up,” he said.
By the Fourth of July, Withrow said he expects all out- of-town contractors to have cleared out and for El Dorado Chemical to be operating at its “new normal.”
Competing in a global market
He explained that the changes will substantially raise the company’s profile in a competitive global market and help maintain its seven-decade status as one of the anchor industries of El Dorado and Union County.
For instance, the new facilities allow El Dorado Chemical use natural gas to make ammonia and to produce down- stream derivatives that can be sold on the open market for competitive prices.
Withrow said the company lost a major contract in 2015 because costs were tied to Tampa-pricing, industry-speak for costs that are based on prices set for monthly imports of material into Tampa that supply large users in Florida.
Withrow said imports of ammonia and ammonia deriv- atives used in agriculture were largely responsible for a shutdown of the ammonia industry in the U.S. in the 1980s and 1990s.
“With what’s happening now with stability in natural gas pricing, it’s allowed us to look ahead at pricing and spend $800 million in capital to produce ammonia our- selves at a lower cost,” Withrow said.
“With the difference between what we can make it for versus buying it, it helps to justify a major capital expen- diture on the payback,” he continued.
For similar reasons, five other ammonia plants are being built in the United States.
“It’s the biggest industry rebirth we’ve seen since he 1960s. We were lucky to start ours when we did and get it moving,” Withrow said.
How important is the expansion to El Dorado Chemical and the community in which the company resides?
“If the ammonia plant had not been built where we could produce ammonia off natural gas, this plant would have been shutdown this past year,” Withrow said.
Improving quality of life
With 50 new employees brought on board to man the expanded facilities, Withrow said El Dorado Chemical is operating at full capacity with 200 team members.
Becoming a competitor with imports and other plants that produce ammonia and its derivatives has given El Dorado Chemical some mind-easing stability, Withrow said.
The company’s long-term future and viability have also been strengthened, as has its ability to continue serving the community.
Team members volunteer and service on boards for various community organizations, events, projects, and the company has been the long-time title sponsor of MusicFest and other events.
“Quality of life is important for everything and every- one, and we have to give back to it,” Withrow said.
All photos contributed
Aerial views: Left, The nitric plant at El Dorado Chemical– $125,000,000 – has been on-line since May 15, 2015 and the new boiler and co-generation unit – $50,000,000 – has been on-line since Oct. 15, 2015. Right, This new ammonia storage plant at El Dorado Chemical – $25,000,000 – began service April 16 of this year. Below, This is an aerial view of the El Dorado site of El Dorado Chemical – post expansion. The site has been in an $800,000,000 expansion, set to be completed in the near future.