Mangalore Chemicals announces implementation of ammonia energy improvement project

“MCF, with a history of over 50 years has attained energy efficiency at par with modern plants. The project was implemented at a capital cost of over Rs.400 Crore and is expected to deliver significant improvement to the bottom line,” the company said in a press release.

Post commissioning, the company’s ammonia production will increase by 25% coupled with reduction in the energy consumption by about 10-12%. The operating margins are expected to improve further with reduction in the energy consumption from the existing levels to 5.5 Gcal/MT and in the long run have a sustainable positive impact on the environment.

“On account of shutdown for the project commissioning, there is 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 bottom line for the rest of the year is expected to show significant improvements,” said T M Muralidharan, chief financial officer, MCF.

MCF converted its urea operation earlier from naphtha to gas based after the receipt of gas in December 2020. As per the extant policies of the government the urea manufacturing companies, there is a mandate to reduce the energy norms further from December 2025.

“In the process, MCF has converted the vintage plant to a highly energy efficient plant at par with modern plants to comply with the mandate of the DOF to achieve the Target Energy Norm. The existing plants were studied by renowned technology providers in the field of ammonia and the project was completed with the support of marquee global and domestic suppliers,” the company added.