TOPIC PAGE: Sustainability in the fertilizers industry
Updated on 27 November.
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
ADM announces launch of regenerative agriculture program in Brazil By Chris Vlachopoulos 22-Nov-23 LONDON (ICIS)–US agribusiness giant Archer Daniels Midland (ADM) has announced the expansion of its regenerative agriculture program through the launch of a similar program in Brazil.
Fertiglobe completes first renewable ammonia shipment with carbon certification By Sylvia Traganida 20-Nov-23 LONDON (ICIS)–United Arab Emirates (UAE) nitrogen fertilizer producer Fertiglobe has completed the first shipment of renewable ammonia with ISCC (International Sustainability and Carbon Certification) PLUS certification.
Allied Green Ammonia picks Topsoe’s tech for Australia project By Sylvia Traganida 15-Nov-23 LONDON (ICIS)–Topsoe has been selected to deliver its green ammonia technology to Allied Green Ammonia Pty Ltd (Allied) for its project in Gove, Northern Territory, Australia.
Germany’s VNG looks to secure offtake from Norwegian low carbon ammonia plant By Amun Lie 13-Nov-LONDON (ICIS)–The Leipzig-based subsidiary of German gas wholesaler VNG announced it has signed a letter of intent to purchase low carbon ammonia from Norwegian company Horisont Energi, potentially covering 3-10% of Germany’s hydrogen demand by 2030.
Gentari enters into agreement with AM Green to invest into a green ammonia delivery platform By Sylvia Traganida 30-Oct-23 LONDON (ICIS)–Gentari Sdn Bhd (Gentari) has entered into an agreement with AM Green BV (AM Green) to jointly invest, in phases, into a green ammonia platform, AM Green Ammonia Holdings BV (AMG Ammonia).
ITOCHU Corporation, Orascom Construction sign MOU for development of ammonia bunkering in Suez Canal By Sylvia Traganida 27-Oct-23 LONDON (ICIS)–ITOCHU Corporation and Orascom Construction have signed a memorandum of understanding (MOU) for the joint development of ammonia bunkering in the Suez Canal in Egypt.
India developing port infrastructure for green hydrogen exports By Priya Jestin 27-Oct-23 10:19 MUMBAI (ICIS)–India is exploring export opportunities for its green hydrogen and ammonia production and is currently developing logistics infrastructure to prepare for future shipments.
S Korea, Saudi
Arabia firms sign 46 pacts, includes blue
By Nurluqman Suratman 24-Oct-23 SINGAPORE (ICIS)–South Korea and Saudi Arabia firms have inked 46 memorandums of understanding (MoU) and joint partnerships, including clean energy-related investments and a new vehicle manufacturing plant to be built in the Kingdom.
INSIGHT: CBAM reporting begins, fertilizer exporters to EU challenged to account for carbon By Nigel Davis 10-Oct-23 LONDON (ICIS)–The transitional phase of the EU’s Carbon Border Adjustment Mechanism (CBAM) came into operation on the first of this month and with it the need for official carbon reporting that will impact importers of ammonia and related fertilizers.
KBR to supply
green ammonia tech to Madoqua Power2X site in
By Morgan Condon 11-Oct-23 LONDON (ICIS)–KBR has been selected to provide its green ammonia technology to a joint venture (JV) project in Portugal, the engineering firm announced on Wednesday.
Germany’s SOM to build green hydrogen, ammonia facility in Brazil’s Piaui state By Jonathan Lopez 06-Oct-23 SAO PAULO (ICIS)–Germany’s Solar Outdoor Media (SOM) is to build a green hydrogen and green ammonia production unit in Parnaiba, in Brazil’s northern state of Piaui, according to the state’s government.
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.
PREVIOUS NEWS HEADLINES
Speak with ICIS
Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.
Want to learn about how we can work together to bring you actionable insight and support your business decisions?