TOPIC PAGE: Sustainability in the fertilizers industry
Updated on 16 September.
On this topic page, we gather the latest news, analysis and resources, to help you to keep track of developments in the area of sustainability in the fertilizers industry.
LATEST NEWS HEADLINES
US ADM and
PepsiCo. announce agreement to reduce carbon
By Mark Milam 14-Sep-22 21:51 HOUSTON (ICIS)–US companies Archer Daniels Midland (ADM) and PepsiCo. have announced a 7.5-year strategic commercial agreement to closely collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains.
Uniper, Vesta to
cooperate on renewable ammonia site in the
By Gary Hornby 12-Sep-22 18:06 LONDON(ICIS)–German utility Uniper and logistics company Vesta have signed a memorandum of understanding (MoU) to evaluate the potential establishment of a renewable ammonia hub in the Netherlands, a joint press release said 12 September.
German Uniper to
work with Japan’s JERA on US clean ammonia
By Stefan Baumgarten 06-Sep-22 19:40 LONDON (ICIS)–German power generation company Uniper and Japanese energy firm JERA plan to jointly develop clean ammonia export projects in the US.
ADNOC ships first
cargo of low-carbon ammonia to
By Stefan Baumgarten 01-Sep-22 14:53 LONDON (ICIS)–Abu Dhabi National Oil Company (ADNOC) has send a first demonstration cargo of low-carbon ammonia from the United Arab Emirates (UAE) to Germany, it said on Thursday.
Canada’s plan to
cut fertilizer emissions is voluntary –
By Stefan Baumgarten 19-Aug-22 16:02 TORONTO (ICIS)–The Canadian federal government’s target to reduce greenhouse gas (GHG) emissions from fertilizers is voluntary, not mandatory, agricultural minister Marie Claude Bibeau said.
Canada’s fertilizer emission goal
raises food production
By Erica Sesay 16-Aug-22 15:38 LONDON (ICIS)–Canada’s emission lowering goal has raised some concerns in the agriculture sector about a possible reduction in the country’s future crop yields.
Northern Nutrients produces new
nitrogen sulphur fertilizer, targets autumn
By Manuja Pandey 04-Aug-22 10:37 LONDON (ICIS)–Canada’s Northern Nutrients has created a new nitrogen sulphur fertilizer, named Triple Kick, which contains 38% nitrogen, 18% sulphur as well as a source of carbon, the company said in a statment.
Hynfra sign deal to explore green ammonia,
By Julia Meehan 15-Jul-22 12:50 LONDON (ICIS)–Ameropa and Hynfra, a Polish-based company focused on clean energy, renewable hydrogen and ammonia, signed a Memorandum of Understanding (MOU) for the development and marketing of renewable ammonia and methanol projects.
Canada invests about $1.7m towards
By Erica Sesay 11-Jul-22 12:11 LONDON (ICIS)–Canada’s Ministry of Agriculture and Agri-Food has announced an investment of up to CAD1.7m for Calgary-based Sulvaris to further develop new technology to produce high-efficiency fertilizers made with organic carbon.
Highfield Resources announces launch of
community initiative at Muga Potash
By Mark Milam 01-Jul-22 21:52 HOUSTON (ICIS)–Spanish fertilizer firm Highfield Resources announced that the Muga Community Initiative, a new public-private partnership created to help promote local development around the Muga Potash mine, has been officially launched.
US Mosaic and
BioConsortia expand collaboration to microbial
By Mark Milam 14-Jun-2022 HOUSTON (ICIS)–US fertilizer producer Mosaic and BioConsortia have entered into a new agreement to distribute BioConsortia’s new microbial biostimulant in Asia.
IMO deems Mediterranean Sea area for
sulphur oxides emissions
By Morgan Condon 14-Jun-22 14:47 LONDON (ICIS)–The International Maritime Organization (IMO) has designated the entire Mediterranean Sea as an area for emissions control, the UN agency announced on Tuesday.
EU CARBON BORDER ADJUSTMENT MECHANISM (CBAM) EXPLAINED
What is it?
The risk of carbon leakage frustrates the EU’s efforts to meet climate objectives. It occurs when companies transfer production to countries that are less strict on emissions, or when EU products are replaced by more carbon-intensive imports.
This new mechanism would counteract this risk by putting a carbon price on imports of certain goods from outside of the EU.
How will it work?
EU importers will buy carbon certificates corresponding to the carbon price that would have been paid, had the goods been produced under the EU’s carbon pricing rules.
Conversely, once a non-EU producer can show that they have already paid a price for the carbon used in the production of the imported goods, the corresponding cost can be fully deducted for the EU importer.
This will help reduce the risk of carbon leakage by encouraging producers in non-EU countries to make their production processes greener.
A reporting system will apply from 2023 with the objective of facilitating a smooth roll out and to facilitate dialogue with non-EU countries. Importers will start paying a financial adjustment in 2026.
How is the fertilizer industry affected?
The fertilizer industry is one of the sectors to fall under the CBAM.
The more energy-intensive nitrogen fertilizers will be affected most in the sector by the mechanism.
DEFRA CONSULTATIONS EXPLAINED
The UK’s Department for Environment, Food & Rural Affairs (DEFRA) launched a consultation at the beginning of November 2020 on reducing ammonia emissions from urea fertilizers. The consultation ran until 26 January 2021.
It set out three options for tackling ammonia emissions:
- A total ban on solid urea fertilizers
- A requirement to stabilise solid urea fertilizers with the addition of a urease inhibitor.
- A requirement to restrict the spreading of solid urea fertilizers to between 15 January and 31 March of a given year.
Liquid urea is excluded from any new rules or restrictions.
DEFRA is currently analysing the feedback received.
In March 2022, DEFRA announced that it had delayed introducing restrictions on the use of urea by at least a year to support farmers with fertilizer availability and keep their costs down
Should DEFRA decide to restrict the use of urea in the future, growers would be left with just ammonium nitrate-based fertilizers.
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