Calcium Ammonium Nitrate (CAN) Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue
Report Overview:
IMARC Group’s report, titled “Calcium Ammonium Nitrate (CAN) Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up a calcium ammonium nitrate (CAN) production plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The calcium ammonium nitrate (CAN) project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.
What is Calcium Ammonium Nitrate (CAN)?
Calcium ammonium nitrate (CAN) is a granular nitrogen fertiliser composed principally of ammonium nitrate blended with a finely divided calcium-bearing material (commonly limestone or dolomite). CAN is produced industrially by neutralising nitric acid with ammonia to form ammonium nitrate, then combining the molten or dense ammonium nitrate with ground calcium carbonate (or dolomite) and granulating the mixture into stable prills or granules. Its key properties include dual‑form nitrogen (quick‑acting nitrate + sustained ammonium), low soil‑acidifying effect, good physical granule strength, and lower regulatory hazard status compared with straight ammonium nitrate in many jurisdictions. Besides this, CAN is widely used for top‑dressing cereals, vegetables and other arable crops where predictable nitrogen availability and calcium supply are valued.
Calcium Ammonium Nitrate (CAN) Production Plant: Key Highlights
- Process Used: Granulation/prilling of ammonium nitrate with calcium source; drying, curing, screening, coating.
- End‑use Industries: Agriculture (row crops, horticulture, vegetables), turf & landscaping, nurseries, specialty industrial uses.
- Applications: Pre‑plant or sidedress N application, topdressing, blended fertilizer mixes, speciality formulations for high‑value crops.
A calcium ammonium nitrate (CAN) production plant converts upstream nitrogen (ammonia and nitric acid or ammonium nitrate melt) and mined/calcareous calcium feedstocks into a granulated CAN product suitable for bulk handling and spreading. In addition, primary operations include nitric acid production (or receipt of nitric acid/ammonium nitrate solution), ammonia handling (or supply of ammonium nitrate melt), neutralisation to produce ammonium nitrate (if produced on site), incorporation of ground limestone/dolomite, and granulation or prilling followed by cooling, screening and coating. Moreover, typical equipment and unit operations include acid–base neutralisers and corrosion‑resistant reactors for ammonium nitrate preparation, melt mixers and transfer pumps, high‑speed granulators or drum granulators to produce uniform granules, rotary dryers/coolers and sieving/screening systems to classify particle sizes, rotary or fluidised‑bed coolers, anti‑caking/coating stations, and bagging/bulk‑loading systems for storage and distribution. In line with this, ancillary systems include dust collection, effluent treatment, steam and power utilities, laboratory quality control, and automation/SCADA for process control. Depending on configuration the plant may receive dense ammonium nitrate prills from an upstream ammonium nitrate complex (avoiding on‑site nitric acid) or may integrate an on‑site ammonium nitrate unit. Furthermore, safety features, explosion‑mitigation design and regulatory controls are essential as ammonium nitrate is an oxidiser; many modern CAN plants are engineered to avoid transporting or storing pure ammonium nitrate as a product by producing the stabilised CAN granule directly.
Calcium Ammonium Nitrate (CAN) Industry Outlook 2025:
The global calcium ammonium nitrate (CAN) market is poised for steady growth, driven by increasing demand for high-efficiency, low-carbon fertilizers in agriculture. In addition, CAN, a nitrogen-rich fertilizer, is widely valued for its ability to enhance crop yields while minimizing environmental impact compared with traditional urea or ammonium nitrate. Moreover, the growing awareness among farmers and governments about sustainable farming practices, soil health, and nutrient management is further propelling CAN adoption. Besides this, expanding end-use applications, such as producing CAN using renewable or low-carbon ammonia, are reshaping the industry by reducing greenhouse gas emissions during production. Furthermore, as the global population continues to increase, the demand for high-efficiency, nutrient-rich fertilizers is expected to expand, reinforcing its critical role in ensuring food security and sustainable agricultural production on a global scale. According to a United Nations report, the global population is projected to increase to 8.6 billion by 2030, and 9.8 billion by 2050. With an annual increase of approximately 83 million people, the population is expected to keep growing, which is creating a critical need for higher agricultural productivity to ensure food security. As a result, farmers are turning to more efficient fertilizers such as calcium ammonium nitrate (CAN) to meet this growing demand. As agricultural sectors intensify production to meet domestic and export demands, calcium ammonium nitrate (CAN) is becoming increasingly vital, reinforcing its role as a key driver of market growth in the fertilizer industry.
Calcium Ammonium Nitrate (CAN) Market Trends and Growth Drivers:
Supportive Government Subsidies
Government initiatives and subsidy programs play a significant role in driving the adoption of calcium ammonium nitrate (CAN) fertilizers. In countries such as India, programs like PM-KISAN provide financial incentives to farmers to enhance agricultural productivity. As per the Press Information Bureau (PIB), the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme provides Rs. 6,000 annually to eligible farmer families in three instalments of Rs. 2,000 directly into Aadhaar-linked bank accounts. In 2022-2023, over Rs. 58,201 crore was disbursed, benefiting millions nationwide, with digital systems ensuring transparency and eliminating middlemen. By providing direct financial assistance to farmers, these programs increase their purchasing power, enabling them to invest in high-efficiency and nutrient-rich fertilizers such as calcium ammonium nitrate (CAN). Subsidies reduce the cost burden, making CAN more accessible compared with conventional alternatives, and encourage adoption across a wide range of crops. As farmers receive consistent financial backing and incentives to adopt advanced fertilizers, the market for CAN continues to expand, driving growth for manufacturers and distributors in both domestic and regional agricultural markets.
Growing Strategic partnerships and distribution networks:
Strategic partnerships and robust distribution networks are becoming increasingly critical in shaping the calcium ammonium nitrate (CAN) market. In addition, collaborations between fertiliser manufacturers, agricultural cooperatives, and distributors enhance market reach and ensure a reliable supply of CAN to farmers worldwide. By partnering with well-established distributors, manufacturers can tap into existing supply chains and expand into key agricultural regions more efficiently, reducing logistical challenges and operational costs. Moreover, the increasing emphasis on sustainable agriculture is driving fertilizer producers and distributors to develop low-carbon solutions. In this context, OCI Global’s partnership with Raiffeisen Waren-Zentrale Rhein-Main AG (RWZ) represents a significant step toward reducing the carbon footprint of crop production. In March 2025, OCI Global teamed up with RWZ to provide low-carbon fertilizers for the “KlimaPartner Landwirtschaft” carbon farming initiative by RWZ and BASF. By integrating advanced production methods and supporting climate-smart initiatives, the project reflects the rising adoption of CAN across the globe, reinforcing its position as a key fertilizer for enhancing crop yields while minimizing environmental impact.
Latest Industry Developments:
- April 2025: Green hydrogen developer Atome signed a USD 465 million EPC contract with Swiss engineering firm Casale for a 145MW hydropower-fed fertiliser facility in Villeta, Paraguay, with FID expected by mid-2025. The plant will produce 260,000 tonnes of green calcium ammonium nitrate (CAN) annually, using green hydrogen from hydropower-based electrolysis as feedstock.
- September 2025: Norwegian fertilizer leader Yara entered a binding 10-year offtake agreement with Atome for 260,000 tonnes per year of low-carbon calcium ammonium nitrate (CAN) from Atome’s Villeta project in Paraguay. The plant will produce CAN using renewable ammonia derived from hydropower. Yara will purchase the full output, with an option to extend the agreement. The deal gives Atome access to Yara’s South American distribution network, targeting major markets in Brazil and Argentina, which together imported over 315,000 tonnes of CAN in 2024.
- March 2025: FertigHy chose Hauts-de-France for its first industrial-scale low-carbon, nitrogen-based fertilizer plant, set to produce 500,000 metric tons annually by 2030, including calcium ammonium nitrate (CAN), using ammonia produced from electrolytic hydrogen. Supported by the French government, the €1.3 billion project uses renewable electricity to generate hydrogen as a natural gas substitute.
Leading Calcium Ammonium Nitrate (CAN) Manufacturers:
Leading manufacturers in the global calcium ammonium nitrate (CAN) market include companies producing and supplying fertilizers for agriculture, horticulture, and plantation applications. Key players include
- Yara
- EuroChem Group
- HELM AG
- FATIMA GROUP
- Origin UK Operations Limited
- Barium & Chemicals, Inc.
- Agrico
- Fertinagro India Private Limited
- AB "Achema"
- GFS Chemicals, Inc.
- Blue Line Corporation
- Allan Chemical Corporation
- Del Amo Chemical Company Inc.
- Uralchem
- Airedale Group
These companies operate large-scale facilities with integrated production, granulation, and distribution systems to serve the global agricultural sector.
Calcium Ammonium Nitrate (CAN) Plant Setup Requirements
Detailed Process Flow:
The production process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the calcium ammonium nitrate (CAN) production process flow:
- Unit Operations Involved
- Mass Balance and Raw Material Requirements
- Quality Assurance Criteria
- Technical Tests
Key Considerations for Establishing a Calcium Ammonium Nitrate (CAN) Production Plant:
Setting up a calcium ammonium nitrate (CAN) production plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:
- Site Selection: The location must offer easy access to key raw materials such as ammonia (or dense melt ammonium nitrate), nitric acid, finely ground limestone or dolomite (calcium source), process water, anti‑caking/coating agents, optional micronutrients, packaging and consumables. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.
- Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.
- Equipment Selection: High-quality, corrosion-resistant machinery tailored for calcium ammonium nitrate (CAN) production must be selected. Essential equipment includes neutralisers/reactors, melt pumps and storage tanks, high‑speed or drum granulators, rotary dryers/coolers, sieves/screens, coating/anti‑caking lines, dust collectors, bagging/bulk‑loading systems, and lab QC equipment. All machinery must comply with industry standards for safety, efficiency, and reliability.
- Raw Material Sourcing: Reliable suppliers must be secured for raw materials like Ammonia (or dense melt ammonium nitrate), nitric acid, finely ground limestone or dolomite (calcium source), process water, anti‑caking/coating agents, optional micronutrients, packaging and consumables to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
- Safety and Environmental Compliance: Safety protocols must be implemented throughout the production process of calcium ammonium nitrate (CAN). Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.
- Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.
Project Economics:
Establishing and operating a calcium ammonium nitrate (CAN) production plant involves various cost components, including:
- Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
- Equipment Costs: Equipment costs, such as those for neutralisers/reactors, melt pumps and storage tanks, high‑speed or drum granulators, rotary dryers/coolers, sieves/screens, coating/anti‑caking lines, dust collectors, bagging/bulk‑loading systems, and lab QC equipment, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.
- Raw Material Expenses: Raw materials, including Ammonia (or dense melt ammonium nitrate), nitric acid, finely ground limestone or dolomite (calcium source), process water, anti‑caking/coating agents, optional micronutrients, packaging and consumables, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.
- Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
- Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.
- Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy.
Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:
Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.
Operating Expenditure (OpEx): In the first year of operations, the operating cost for the calcium ammonium nitrate (CAN) production plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.
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Capital Expenditure Breakdown:
| Particulars | Cost (in US$) |
|---|---|
| Land and Site Development Costs | XX |
| Civil Works Costs | XX |
| Machinery Costs | XX |
| Other Capital Costs | XX |
Operational Expenditure Breakdown:
| Particulars | In % |
|---|---|
| Raw Material Cost | XX |
| Utility Cost | XX |
| Transportation Cost | XX |
| Packaging Cost | XX |
| Salaries and Wages | XX |
| Depreciation | XX |
| Taxes | XX |
| Other Expenses | XX |
Profitability Analysis:
| Particulars | Unit | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|
| Total Income | US$ | XX | XX | XX | XX | XX |
| Total Expenditure | US$ | XX | XX | XX | XX | XX |
| Gross Profit | US$ | XX | XX | XX | XX | XX |
| Gross Margin | % | XX | XX | XX | XX | XX |
| Net Profit | US$ | XX | XX | XX | XX | XX |
| Net Margin | % | XX | XX | XX | XX | XX |
Report Coverage:
| Report Features | Details |
|---|---|
| Product Name | Calcium Ammonium Nitrate (CAN) |
| Report Coverage | Detailed Process Flow: Unit Operations Involved, Quality Assurance Criteria, Technical Tests, Mass Balance, and Raw Material Requirements Land, Location and Site Development: Selection Criteria and Significance, Location Analysis, Project Planning and Phasing of Development, Environmental Impact, Land Requirement and Costs Plant Layout: Importance and Essentials, Layout, Factors Influencing Layout Plant Machinery: Machinery Requirements, Machinery Costs, Machinery Suppliers (Provided on Request) Raw Materials: Raw Material Requirements, Raw Material Details and Procurement, Raw Material Costs, Raw Material Suppliers (Provided on Request) Packaging: Packaging Requirements, Packaging Material Details and Procurement, Packaging Costs, Packaging Material Suppliers (Provided on Request) Other Requirements and Costs: Transportation Requirements and Costs, Utility Requirements and Costs, Energy Requirements and Costs, Water Requirements and Costs, Human Resource Requirements and Costs Project Economics: Capital Costs, Techno-Economic Parameters, Income Projections, Expenditure Projections, Product Pricing and Margins, Taxation, Depreciation Financial Analysis: Liquidity Analysis, Profitability Analysis, Payback Period, Net Present Value, Internal Rate of Return, Profit and Loss Account, Uncertainty Analysis, Sensitivity Analysis, Economic Analysis Other Analysis Covered in The Report: Market Trends and Analysis, Market Segmentation, Market Breakup by Region, Price Trends, Competitive Landscape, Regulatory Landscape, Strategic Recommendations, Case Study of a Successful Venture |
| Currency | US$ (Data can also be provided in the local currency) |
| Customization Scope | The report can also be customized based on the requirement of the customer |
| Post-Sale Analyst Support | 10-12 Weeks |
| Delivery Format | PDF and Excel through email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
- How has the calcium ammonium nitrate (CAN) market performed so far and how will it perform in the coming years?
- What is the market segmentation of the global calcium ammonium nitrate (CAN) market?
- What is the regional breakup of the global calcium ammonium nitrate (CAN) market?
- What are the price trends of various feedstocks in the calcium ammonium nitrate (CAN) industry?
- What is the structure of the calcium ammonium nitrate (CAN) industry and who are the key players?
- What are the various unit operations involved in a calcium ammonium nitrate (CAN) production plant?
- What is the total size of land required for setting up a calcium ammonium nitrate (CAN) production plant?
- What is the layout of a calcium ammonium nitrate (CAN) production plant?
- What are the machinery requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the raw material requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the packaging requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the transportation requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the utility requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the human resource requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the infrastructure costs for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the capital costs for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the operating costs for setting up a calcium ammonium nitrate (CAN) production plant?
- What should be the pricing mechanism of the final product?
- What will be the income and expenditures for a calcium ammonium nitrate (CAN) production plant?
- What is the time required to break even?
- What are the profit projections for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the key success and risk factors in the calcium ammonium nitrate (CAN) industry?
- What are the key regulatory procedures and requirements for setting up a calcium ammonium nitrate (CAN) production plant?
- What are the key certifications required for setting up a calcium ammonium nitrate (CAN) production plant?
Report Customization
While we have aimed to create an all-encompassing calcium ammonium nitrate (CAN) plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:
- The report can be customized based on the location (country/region) of your plant.
- The plant’s capacity can be customized based on your requirements.
- Plant machinery and costs can be customized based on your requirements.
- Any additions to the current scope can also be provided based on your requirements.
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- The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
- Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
- Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
- We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
- Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
- Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable production plants worldwide.
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The study also covers critical elements such as location analysis, environmental impact, plant layout, and costs associated with land, machinery, raw materials, packaging, transportation, utilities, and human resources. The project economics section provides an in-depth analysis of capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation, depreciation, liquidity, profitability, payback period, net present value (NPV), uncertainty, and sensitivity analysis.
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