Project detail - Indorama Eleme Fertilizer and Chemicals Limited

Who is our customer?

An entity of the Indorama Group, Indorama Eleme Fertilizer & Chemicals Limited (“IEFCL”), is a brownfield urea fertilizer project consisting of two plants, with a current capacity of 2.8 million tons per annum. The plants are located near Port Harcourt, Nigeria.

What is our funding objective?

The purpose of the financing is to fund the construction of a third urea fertilizer plant, located on the same premises next to the existing production lines. This expansion will increase total production capacity from 2.8 million tons to 4.2 million tons per annum. In addition, a dedicated jetty and port terminal with sufficient Line 3 urea export capacity is planned at the port of Onne, approximately 20 kilometers from the IEFCL site.

Why do we fund this investment?

The project supports fertilizer consumption and promotes the productive use of arable land which increases crop yields and food security. In Nigeria, IEFCL provides education services for farmers on best practices in crop production and fertilizer management, reducing input costs and waste while increasing yields. The expansion also supports local job creation, largely sourced from the Niger Delta region. The project is partly (78%) labelled Green (SDG10), as it uses the best available techniques when compared to other plants and contributes to the reduction of gas flaring by using natural gas for the ammonia and urea production. The project includes an expansion of the existing gas power plant at Line 3 through the addition of a single gas turbine to provide further redundancy in power generation. The expansion of the power plant is excluded from the FMO use of proceeds in line with FMO Fossil Fuel Policy.

What is the Environmental and Social categorization rationale?

The environmental and social (E&S) risk category of this investment is B+. The Line 3 expansion is adjacent to existing Lines 1 and 2 and within the larger industrial site. No new operational risks were identified; anticipated impacts are cumulative in nature and result from increased production capacity. The new jetty complex is situated within the Onne Port area, which is impacted by the initial port construction and current operations. IFC Performance Standards PS1 to PS4 are applicable to both the Line 3 and jetty projects. The completed Environmental and Social Impact Assessments (ESIAs) for Line 3 and the jetty confirmed that PS5 (Land Acquisition and Involuntary Resettlement), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are not applicable. Both sites are situated in modified habitat and impacts to biodiversity (PS6) are limited. Compliance with relevant general and sector-specific World Bank Environmental Health and Safety Guidelines is required.

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