The technology and processes we use to produce ammonia and UAN are complex. The gasifier converts low priced petroleum coke into a hydrogen rich synthesis gas. The syngas is then converted into anhydrous ammonia in an ultra high efficiency ammonia plant. Subsequently, the ammonia is further upgraded into UAN in a fully integrated UAN plant. Please click here to view an animation of our nitrogen fertilizer production process.
The majority of the petroleum coke used in the state-of-the-art gasification process is supplied by Coffeyville Resources Refining & Marketing, LLC, a refinery located adjacent to our fertilizer operations which is owned by CVR Energy, our parent company.
Substantially all of our nitrogen fertilizer competitors use natural gas as their primary raw material feedstock. Historically, petroleum coke has been significantly less expensive than natural gas on a per ton of fertilizer produced basis and prices have been more stable when compared to natural gas prices. By using petroleum coke as the primary raw material feedstock instead of natural gas, CVR Partners’ nitrogen fertilizer business has historically been the lowest cost producer and marketer of ammonia and UAN fertilizers in North America.
Although our nitrogen fertilizer products are supplied to several areas in the United States, our primary markets are located in the farm belt. The majority of our nitrogen fertilizer is shipped to customers in Colorado, Illinois, Iowa, Kansas, Missouri, Nebraska and Texas.
Our strategic location allows us to supply our products to these areas without incurring intermediate storage, barge or pipeline freight charges. Because we do not incur these costs, we have a distribution cost advantage over U.S. Gulf Coast ammonia and UAN producers and importers.
In 2011, Coffeyville Resources Nitrogen Fertilizers produced 116,800 tons of ammonia available for sale, and also produced 714,100 tons of UAN.
