Economic Symposium on Nitrogen - ACS Publications - American

Chemical economics is a subject which the technical man has oftentimes been ... Business problems loom so large in the practice of applied chemistry t...
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INDUSTRIAL AND ENGINEERING CHEMISTRY

Vol. 20, No. 11

ECONOMIC SYMPOSIUM O N NITROGEN Papers presented before the Division of Industrial and Engineering Chemistry at the 76th Meeting of the American Chemical Society, Swampscott, Mass., September 10 to 14, 1928 I

Introduction Williams Haynes, Chairman‘ 25 SPRUCE ST.,hTSW Y O R K , N.

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HE papers presented here are an experiment. For problem. Since it is an essential element in modern explothe first time a chemical problem is presented at a sives, it is intimately connected with national defense and meeting of the AMERICAN CHEMICAL SOCIETY from its international poiitics. We are familiar with the astonisheconomic point of view by industrialists rather than by ingly rapid technical advancements in nitrogen manufacture chemists. and the notable expansion of new chemical uses and new Chemical economics is a subject which the technical man chemical processes employing this element. has oftentimes been accused of neglecting, to his personal At the present time the world’s nitrogen production balloss and to the great detriment of the chemical industry. ances roughly with consumption; but new development proBusiness problems loom so large in the practice of applied grams, now actually under way, indicate that next year we chemistry that an opportunity to form a better and more will have a surplus production so great that, in spite of the direct contact, through the AMERICAN CHEMICAL SOCIETY,growing use of nitrogen, consumption will not catch up for with the thought of business leaders should benefit not only several years to come. The obvious economic result of this the chemist and the executive, but also the SOCIETY and the overproduction is going to be an intensely keen competitive industry in general. market in which we will have the almost unique example We have selected nitrogen as the subject of this first eco- of the three great types of chemical products-a natural nomic conference; first, because the nitrogen problem is product, Chilean nitrate; a by-product, ammonium sulfate; timely; second, because of its wide and diverse interests; and a manufactured product, synthetic nitrogen in various and third, because nitrogen furnishes an exceptionally pretty forms-all in direct active competition. example of the complexities of economic chemistry. To discuss these intensely interesting economic problems, Inasmuch as nitrogen is a vital and the most costly ele- we have five outstanding chemical industrialists, each by ment of plant food, it is an interesting factor in our farm experience and daily contact preeminently well fitted to expound his chosen subject. 3 Publisher of Chemical Markets.

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The New Economic Aspects of Nitrogen’ Jasper E. Crane2 LAZOTE, INC.,WILMINGTON, DEL.

N CONSIDERING the economics of the nitrogen industry, the first thought that comes to mind is the enormous importance of nitrogen to modern civilization. The inert gas, diluent of our atmosphere, produces by one of Nature’s paradoxes the liveliest sorts of compounds, essentials to our life. As a carrier of oxygen, nitrogen is the basis of explosives, and thus of national defense. It is one of the three essential plant foods-indeed, the one whose supply has been giving the world the most concern. An ample supply of nitrogen is a basic necessity for agriculture, to feed the increasing population. Cheap nitrogen is of similar importance to the farmer as cheap power is to the manufacturer. Permitting greater crops to be grown on the same amount of land, it is a labor-saving tool of the utmost value. Doctor Curtis was undoubtedly right in stating in 1924--‘What is done with the nitrogen problem in the next ten years will probably determine to a considerable degree whether present American standards of living can be maintained.” The nitrogen industry is also of first-rate commercial importance. The nitrate of soda trade is the outstanding feature of the economic situation of Chile. The receipts

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1 Presented under the title “The New Place of Nitrogen in Chemical Economics.” 2 Chairman of the Board of Lazote, Inc.

from by-product ammonia play an important role in the coke industry of the great industrial nations. Germany’s great synthetic nitrogen industry has been a leading factor in her efforts toward financial rehabilitation following the war. Thus it is natural that so many nations now aim to become self-contained with respect to nitrogen; the instincts of selfpreservation both as regards self-defense and thE! food supply prompt that desire. Yet this is bringing into being nitrogen projects that are economically unsound. For instance, a plant large enough to supply only the military nitrogen requirements of a country will be too small to work economically and to lend any contribution to the needs of agriculture. To bolster up such a project by governmental subsidy wastes public funds and prejudices private enterprise. Indeed, in considering nitrogen economics, one is struck by the many uneconomic things that are being attempted. Nitrogen fixation has become the fashion. Everybody is doing it. ?Many plants have been erected which are too small or improperly located with respect to raw materials or consuming markets to survive the coming competition. Another feature of the “uneconomics” of the industry is the lack of accurate statistics, particularly abroad. Accurate statistics are the foundation of sound economics; we must know what has been done in the past and what is going on today before

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I S D USTRIAL Ah-D EA-GINEERIA-G CHEMISTRY

we can look ahead intelligently. After all, the nitrogen industry is comparatively new, and it is all the more important, therefore, to get our basic facts right and not depend on premises which are unsound or hopes that may prove false.

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keen, low prices will continue, and uneconomic producers will fall by the wayside. Consumption and Production in America

Let us turn to the American figures, expressing these in short tons of nitrogen. It may seem foolish to use metric =it the beginning of the century the world’s consumption tons and short tons in the same paper, but then it is equally of inorganic nitrogen was slightly less than 300,000 metric foolish for us in America to use pounds and short tons and tons per year. By 1913 it had reached 750,000 tons. After all the other confusing weights and measures, instead of the the enormous requirements of the war had subsided, the metric system. American consumption in 1901 was 45,000 consumption of nitrogen in the six years 1919 to 1924, short tons of nitrogen, rose to 150,000 tons in 1913, nearly though fluctuating considerably, remained approximately to 400,000 tons in 1918 on account of the military demand, constant a t 1,000,000 metric tons. For the year ended June fell after the mar to about 200,000 tons, and was almost 300,30, 1927, the world consumed 1,300,000 tons. For the past 000 tons for the calendar year 1927. This year in America, year ending June 30, 1928, consumption has increased to the as abroad, there seems to have been a great increase in the consumption of nitrogen, enormous total of over and the figure will prob1,600,000 metric tons. ably reach 360,000 tons. Analysis of these figures Examining these figures, shows that the growth in we see that the American con s u m p t ion before the con s u m p t io n increased war was a t the rate of 7.5 9000 tons per year from the per cent c o m p o u n d e d beginning of the century annually, and if this rate to 1913, inclusive, or 6 per had been maintained concent per year of the 1913 sumption this year would consumption. Since 1921 be nearly 2,000,000 tons. it has increased a t the rate But it is surely fallacious of 18,000 tons per year or to figure on cumulative 6 per cent of the 1927 conpercent age i n c r e a s e . sumption. It is misleadRather, we can get the best ing to express the increase picture of the growth in i n p e r c e n t a g e of each demand by reducing the year’s consumption, and it rates of increase to perdoes appear to be definite centage, using the postWilliams Haynes Jasper E . Crane that the rate of increase w a r c o n s u m p t i o n of in the consumption of ni1,000,000 tons as a common d e n o m i n a t o r . On trogen in this country is this basis the world’s consumption of nitrogen increased 4 now twice as great as it was before the war. per cent or 40,000 metric tons per year in the decade ended The American consumption was thus 14 per cent of the 1910. 6 per cent or 60,000 tons per year in the period 1910 world’s consumption a t the beginning of the century, 18 per to 1914, 20 per cent or 200,000 tons per year during the war cent in 1913, and 20 per cent today. About 60 per cent of the period 1914 to 1918, reaching 1,300,000 tons in the latter American consumption is believed to be used in agriculture, year, receded to 1,000,000 tons and remained stationary in undoubtedly a somewhat lower proportion than that in the six years following the war, and has increased a t the rate the rest of the world. of 10 per cent or 100,000 tons per year from 1924 to 1927, The opinion of those who have studied the problem thoror a t 15 per cent or 150,000 tons per year in the years 1924 to oughly is that nitrogen consumption is relatively far too 1928. Through the whole period from 1901 to 1928 the in- small. The use of nitrogen is in its infancy in this country, crease has been a t the rate of 50,000 tons per year. It will and it may be confidently expected that the rate of increase be seen that the world’s consumption of nitrogen approxi- in consumption will be much greater in the future than it mately doubled in the first ten years of the century, and has has been. in the past. The imports of nitrogen products doubled in the fifteen years 1913to 1928. The rate of increase other than nitrate of soda and cyanamide into this country in demand in the past four years has been greater than ever, have increased rapidly in recent years, from 5000 tons of but it is too soon after the war to determine whether this nitrogen in 1924 to 13,000 tons in 1926 and 25,000 tons in rate will be maintained. If it is, the world will consume 1927, and it is estimated that 50,000 tons of nitrogen will be 2,000,000 metric tons of nitrogen by the year 1931-32 and imported this year. 2,200,000 tons in 1932-33. If, as is more likely, the demand Turning to the figures for American production, a t the increases at most 100,000 tons a year, the world will not beginning of the century the United States produced 13 per consume 2,200,000 tons until the year 193636. cent of its requirements; in 1910, 18 per cent; in 1913, 25 per Production has kept pace with consumption. Indeed, cent; a t the present time about 50 per cent. This increase one is tempted to believe that since the war consumption has in American production has been brought about almost enkept pace with production. NOW, however, the world’s tirely by the increase in by-product ammonia production, productive capacity is being greatly increased, so that by but the infant synthetic ammonia industry is now beginning next year, if all announced plans are carried into fruition, to lend a hand. The production of synthetic ammonia in there will be a producative capacity of 2.200,OOO metric tons, 1927 was about 18,000 tons of nitrogen, and this year it should several years before there is any expectation that the world be 27,000 tons. Next year, with the plants that are now can consume such a quantity of nitrogen. There is, therefore, building, production should exceed 80,000 tons and in 1930, in procesc right now a dangerous overexpansion of production 140.000 tons. If these expectations are realized, the United facilitiec. It seems rertain that competition will be Tery Statw nil1 produce 65 per cent of its probable nitrogen reWorld Production and Consumption of Inorganic Nitrogen

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quirements next year and 80 per cent by 1930. I n addition our exports have mounted year by year, from 5000 tons in 1918 to about 50,000 tons this year. Prices of Nitrogen Products

Without considering the great, inevitable rise in nitrogen prices during the war or minor fluctuations since the war, we can see that the price trend has been steadily downward, so that sulfate of ammonia sells today for two-thirds of its prewar price, and nitrate of soda a t 90 per cent of the 1913 figure. These figures, as compared with the general commodity price index of about 140 per cent of pre-war, show that nitrogen today is one of the cheapest of all commodities. Rise of Synthetic Ammonia Process

The present reasonable price of fertilizer nitrogen is due to the effect of the synthetic industry. The production of by-product ammonia changes only slowly with the growth of the coking of coal and the consumption of gas, and has not exercised any positive effect on the price situation. If there should be a great overproduction of nitrogen throughout the world, by-product ammonia must all be disposed of, but it does not itself set the pace. Without the fixation of atmospheric nitrogen, the world’s enormously increased demand for nitrogen could not have been supplied, and nitrogen prices would have remained very high. Yet, after all, nitrogen fixation is a very young industry; but progress is very rapid. Already the arc process is being put into the discard, production by the cyanamide process has increased very little in the past few years and probably will remain stationary. The production of synthetic ammonia, in which the Germans have so ably led the way, is, on the other hand, increasing very rapidly, too rapidly when the unsound projects mentioned above are considered. The persistent idea of fixing atmospheric nitrogen at Muscle Shoals is an economic fallacy of the worst kind. The old and out-of-date cyanamide plant there could not compete with present processes and plants. The synthetic ammonia plant built in 1918 was not successful, and very large amounts of capital would be required to erect a modern plant, in a location which is completely unsuited for the synthetic ammonia industry, which requires cheap fuel and a situation favorable to consuming markets. Cheap fertilizer would not be manufactured a t Muscle Shoals and, instead of conferring a benefit on the farmer, an attempt to manufacture there would hurt his. interest by discouraging private enterprise, which is pushing forward so fast in solving the nitrogen problem for America. I n the synthesis of ammonia the cost may be divided into two parts, preparation of pure hydrogen and t h e synthesis step. Of these, the manufacture of hydrogen is so important that we might almost refer to the industry as the fixation of hydrogen rather than the fixation of nitrogen. The preparation of hydrogen by electrolysis of water, with its large power requirements, cannot be economic, except in isolated cases, such as in Norway, with a large already harnessed water power for which no other use is at hand. In the United States, where not over 25 per cent of the CountTy’s power requirements can be produced from water power, power is worth what it costs to develop from coal. The use of water power in this country for producing hydrogen for ammonia synthesis is therefore an uneconomic divergence of power. Hydrogen is most cheaply produced from cheap fuel, and the United States is as favorably situated in this respect as any country in the world. An outstanding feature of the cost of synthetic ammonia is the very high cost of plant. High-pressure operati~ns require heavy apparatus, and amortization of plant is one

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of the most important elements in the cost of production, nearly two years’ sales being required to turn over the plant investment. The industry cannot be tackled successfully on a small scale. Huge plants are required in order to bring down the overhead expense and the labor per unit of product. Even with free hydrogen, a small plant could not successfully compete except for special purposes. Under the most favorable conditions of large plants, cheap fuel, economic location, technical skill, and ample and courageous financial resources success ensues but with a small profit per unit of product. As low prices are required by the economics of the situation, it is an industry of small margin of profit and large volume. Future of Synthetic Ammonia Industry

The American synthetic ammonia industry of such recent origin is pressing forward and seems destined to have a very important future. Already much has been accomplished. Cheap nitrogen is now a fact in the United States. Ammonia prices are down to the European level, in some instances lower than abroad. A fact of interest to the chemical industry is that anhydrous or aqua ammonia is now, with the exception of lime, the cheapest base per unit of alkali equivalent. The manufacture of nitric acid in this country is rapidly swinging over from nitrate of soda to the oxidation of amnionia. The use of synthetic ammonia in fertilizer is beginning. Anhydrous ammonia for the refrigeration industry, in which America leads the world, is now supplied by the synthetic industry. Numerous tank cars are hauling anhydrous ammonia all over the United States. A start has thus been made in synthetic ammonia in this country, a large program of expansion is now under way. It remains to progress sanely and wisely, with a broad vision of future possibilities and with faith in our ability to develop them. Without faith no discussion of economics is complete. Figures and theories alone do not make up the science of economics; the spiritual element must not be overlooked. Faith in our fellowmen-in other words, credit-is the basis of all financial structure. And in the nitrogen industry faith in American ability, supported by what has already been done, impels us forward. We walk by faith.

Toy Balloons and Filtration’ John W. Garrett and C. D. Hurd NORTHWESTERN UNIVERSITY, EVANSTON, ILL.

R U B B E R dams as aids in pressure filtration in the laboratory have been recommended by Gortner12Clarke,3and perhaps others. This prevents the caking and cracking of the precipitate as the solvent is withdrawn. A modification of this plan which is somewhat simpler is to employ an inflated toy rubber balloon in place of the sheet rubber. The balloon has certain definite advantages over the rubber dam. In the first place, it sits on the Buchner funnel securely and needs no mechanical device to hold it in place. Furthermore, there are no “wrinkles” to be smoothed out, since the supple spherical contour of the balloon conforms perfectly to the edges of the funnel. For the usual laboratory Buchner funnels, an ordinary toy balloon is of convenient size when properly inflated. It is placed on top of the funnel after most of the solvent has been removed, but while the precipitate is still in pasty condition. 1

Received October 4, 1928.

* J . A m . Chem. 5‘06.. 86, 1967 (1914).

8 J . Ckem. Educalion, 4, 1012 (1927); Synthetic Organic Chemicals. 1, No. 3 (February, 1928).