The Fertilisers and Chemicals Travancore Ltd (FACT) wants to double the storage capacity from the present 5000 MT at its Udyogamandal unit in Kerala.

The government of India enterprise's unit has two ammonia storage tanks of 5000 MT each totalling 10000 MT. But the present storage clearance allows only 5000 MT storage.

The firm said the reasons for the enhancement are:

1. Anticipated build up of ammonia from the 900 TPD ammonia plant (RAP), upstream plant.
2. Avoid huge energy losses in terms of stream and naphtha resulting from abrupt unscheduled shutting down and start up of RAP plant in event of reduced consumption from FACT, Cochin division which is located nearly 30 km from Udyogamandal.
3. Loss in productivity and profitability due to non-availability of storage clearance for accommodating upstream ammonia from RAP when there is drop in demand.

The advantages of expansion are:

1. With enhanced storage capacity, the plant can run at 100 per cent load, increasing energy efficiency. Running at 60-65 per cent load can be avoided as done frequently at present.
2. Can use more of cheaper imported ammonia made from natural gas rather than totally producing from expensive naphtha. FACT had incurred a loss of Rs 100 crore in 2009-10.

The environmental and other benefits are:

1. The increased efficiency will result in reduced consumption of fossil fuels.
2. Carbon dioxide generation from gas-based ammonia is around 66 per cent of that of naphtha-based ammonia. Thus carbon dioxide emission can be reduced by substituting naphtha-based ammonia from the plant with gas-based imported ammonia.
3. Increased availability of indigenous fertiliser.

The Udyogamandal division of FACT manufactures 225000 TPA ammonium sulphate, 200000 TPA ammonium phosphate-sulphate and 50000 TPA caprolactam.