INSIGHT: Inhibitor urea could be the future for European farmers

LONDON (ICIS)–Implementation of the EU’s clean air programme  across Europe’s agriculture sector and the impact on the urea market remain a little uncertain, particularly in the UK because of Brexit delays. But with the UK Agriculture Bill 2019-2020, introduced this January, inhibitor urea looks set to be the future for the farmer.

Germany is leading the fertilizer market with national legislation (as of 1 Feb 2020) allowing the use of urea only with an inhibitor. This is expected to lower the uptake of urea and potentially increase application the already more widely used calcium ammonium nitrate (CAN).

The UK imported 726,169 tonnes of urea in January-November 2019, according to the ICIS demand supply database.

French urea imports for the same period were 1.4m tonnes while Germany imported 448,591 tonnes.

There is no doubt among agronomists and fertilizer producers that enhanced urea fertilizers and urease additives will play a bigger role in arable farming because of the need to reduce ammonia losses under the Europe’s clean air goals. But not every market observer is convinced.

In the UK, close to 90% of ammonia emissions originate from agriculture. Hence there is a strong focus on the farming community.

The UK government wants to reduce ammonia emissions by 8% in 2020 and 16% in 2030, compared to 2005 levels.

The use of solid urea coated with a urease inhibitor not only reduces emissions but also the amount of applications. Farmers can apply the urea early and in large doses because of its slow release.

Urease inhibitor contains N-(n-Butyl) thiophosphoric triamide (NBPT) and was originally established by Germany’s SKW Stickstoffwerke Piesteritz. It has been commercially available for around 15 years.

“Inhibitor urea in nothing new. It’s been around for a long time. But I don’t think we will see much urea used Germany. Farmers will switch to CAN,” commented a German marketer for fertilizers.

BASF has since developed its LIMUS technology, brought to market in 2015, in order to “boost efficiency of urea-based fertilizers”.

According to BASF, Limus reduces ammonia emissions by up to 98% and can improve yields by 5% when compared with the application of unprotected urea and with urea ammonium nitrate (UAN).

Country wise, Germany and the UK look to be leading the way with legislation aimed towards helping Europe reach its clean air goals, but France may not be as aspiring or so easily convinced of the benefits of a chemically coated nitrogen fertilizer.

“For France, I don’t see it. France won’t take on the legislation,” the marketer commented.

“Why add chemicals to make fertilizers more environmentally friendly? This is how the French will look at it.”

Alternative products, such as sulphur coated urea, have been slow to take off.

The problem for farmers switching to an alternative, albeit a more environmentally friendly one, is cost and coated urea comes at a price.

In Germany, inhibitor urea is typically priced at a €50/tonne premium. In the UK, there are a number of different inhibitors on the market which add around £30/tonne.

Urea is produced from ammonia and carbon dioxide. It has a 46% nitrogen content, which is the highest nitrogen content of any solid nitrogen fertilizer.

Urea can be applied by itself to the soil or mixed with phosphate and potash.

By Julia Meehan