TOPIC PAGE: Sustainability in the fertilizers industry
Updated on 25 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
By Sylvia Traganida 22-Sep-23 LONDON (ICIS)–Tecnicas Reunidas and Allied Green Ammonia have signed an agreement to start the first phases of green hydrogen and green ammonia production facilities in the Northern Territory, Australia.
By Sylvia Traganida 19-Sep-23 LONDON (ICIS)–Australian fertilizers and explosive manufacturer Orica has stepped up its climate change targets amid a strong business performance.
By Chris Vlachopoulos 12-Sep-23 LONDON (ICIS)–Nestle and Cargill have launched a UK, two-year trial to assess whether cocoa shells from a local confectionery could be used to create low-carbon fertilizer. The volumes of cocoa shells are provided by Cargill, as well as CCm Technologies.
By Amun Lie 29-Aug-23 LONDON (ICIS)–German utility EnBW announced on 29 August it has acquired a 10% equity stake and offtake right for a renewable ammonia production plant developed by Norwegian company Skipavika Green Ammonia (SkiGA).
The production facility is set to completed in 2026, to be powered by renewable electricity and with a planned production capacity of 100,000 tonnes/year.
By Sylvia Traganida 10-Aug-23 LONDON (ICIS)–Yara Germany has signed a co-operation agreement with the Bindewald & Gutting Milling Group and Harry-Brot for the decarbonisation of cereal cultivation in Germany through the use of green fertilizers.
Hyphen, ITOCHU ink MoU to explore potential Namibia hydrogen collaboration By Gary Hornby 09-Aug-23 LONDON (ICIS)–Hyphen Hydrogen Energy and the ITOCHU Corporation announced 8 August that the two companies have signed a memorandum of understanding (MoU) surrounding hydrogen in Namibia.
INSIGHT: BASF grapples
with demand trough, slow road
By Tom Brown 02-Aug-23 14:12 LONDON (ICIS)–BASF and the wider chemicals sector is dealing with an environment more singular even than the conditions seen in the pandemic and 2008 financial crash according to BASF chief Martin Brudermuller, with little sign of a V-shaped recovery from the current demand trough.
AN ships low-carbon urea to New
By Deepika Thapliyal 24-Jul-23 14:57 LONDON (ICIS)–The first global shipment of low-carbon urea from SABIC Agri-Nutrients Company (SABIC AN) arrived in Timaru, New Zealand, the Saudi-based producer said.
US Cargill and John Deere collaborate to enable revenue for farmers adopting sustainability By Mark Milam HOUSTON (ICIS)–US agribusiness titans Cargill and John Deere have announced a collaborative effort to streamline the digital and in-field experience for farmers using John Deere’s technology and electing to participate in Cargill’s RegenConnect program.
Canada’s Lucent Bio announces approval of biodegradable nutrient delivery patent By Chris Vlachopoulos LONDON (ICIS)–In Canada, Lucent Bio has announced the approval of a biodegradable nutrient delivery technology (US Patent No 11,691,928) which, the company claims, has the potential to re-invent the delivery of nutrients in agricultural practices by using water-insoluble biopolymers in crop nutrition. Rather than delivering nutrients to the plants all at once, Lucent Bio’s technology aims to deliver nutrients to plants more gradually, through microbial mineralisation.
Aker, Statkraft’s 10-year PPA to spur European renewable ammonia push further By Luka Dimitrov 06-Jul-23 16:50 LONDON (ICIS)–A 10-year renewable ammonia power purchase agreement (PPA) between renewable developer Aker Horizons and European energy firm Statkraft is expected to ramp up of the European hydrogen economy further, both companies said in a release 5 July.
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
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