TOPIC PAGE: Sustainability in the fertilizers industry
Updated on 13 February.
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
EU eases climate
proposals after widespread farmer
By Chris Vlachopoulos 07-Feb-24 LONDON (ICIS)–European Commission President Ursula von der Leyen announced on Tuesday that the EU has agreed to ease key demands in its climate proposal plans, following intense protests from farmers.
Tecnimont awarded engineering contract for Portugal green hydrogen, ammonia plant By Graeme Paterson 05-Feb-24 LONDON (ICIS)–Tecnimont has been awarded an engineering contract to develop an integrated green hydrogen and green ammonia plant at Sines, Portugal, its parent company Maire said on Monday.
EU proposes relaxation in policy following farmer protests By Deepika Thapliyal 31-Jan-24 LONDON (ICIS)–The European Commission Wednesday proposed relaxing green farming requirements under the Common Agricultural Policy (CAP), in its first attempt to quell farmer protests across Europe as the sector struggles to stay economically viable.
Biden Administration invests $207m in domestic fertilizer and clean energy endeavours By Chris Vlachopoulos 23-Jan-24 LONDON (ICIS)–The Biden Administration is investing $207m in domestic fertilizer and renewable energy projects, the US Department of Agriculture (USDA) Secretary Tom Vilsack announced on Monday, 22 January.
Brazil’s state of Ceara, Bp sign MoU for green hydrogen site By Jonathan Lopez 18-Jan-24 SAO PAULO (ICIS)–The government of the Brazilian state of Ceara and UK-headquartered energy major Bp signed this week a Memorandum of Understanding (MoU) to build a green hydrogen site.
Atome Energy in talks with buyers for green fertilizer from Paraguay unit By Manuja Pandey 17-Jan-24 LONDON (ICIS)–UK’s Atome Energy Plc is in advanced negotiations with leading international players for the offtake of green calcium ammonium nitrate (CAN) fertiliser from its production facility in Villeta, Paraguay.
Sweden’s Cinis targets Asia potash market with Itochu partnership By Andy Hemphill 16-Jan-24 LONDON (ICIS)–Swedish green-tech start-up Cinis Fertilizer has signed a letter of intent (LOI) with Japan-headquartered trading house Itochu to launch its environmentally-friendly mineral fertilizer in the Asian market.
Helwan selects Eurotecnica’s Euromel G5 technology for new melamine facility in Egypt By Melissa Hurley 15-Jan-24 LONDON (ICIS)–Eurotecnica has been selected by Helwan Fertilizers Company (HFC) for the implementation of a world-scale melamine plant based on proprietary Euromel G5 melamine technology, the technology arm of Switzerland’s Proman said on Monday.
India’s Adani Group plans $24bn green energy park; RIL to commission giga complex By Priya Jestin 12-Jan-24 MUMBAI (ICIS)–India’s western Gujarat state is set to become the domestic hub of green energy projects following an announcement by the Adani Group to set up a large green energy park and Reliance Industries Ltd (RIL) set to commission its giga complex in the state soon.
INPEX and LSB pick technology for US ammonia project By Stefan Baumgarten 10-Jan-24 HOUSTON (ICIS)–INPEX Corp and LSB Industries have chosen KBR’s blue ammonia technology for a planned 1.1m tonne/year low-carbon ammonia project on the US Gulf Coast, KBR said on Wednesday.
Bayer partners with energy firms on hydrogen cluster in Germany By Stefan Baumgarten 09-Jan-24 LONDON (ICIS)–Pharmaceuticals and agrochemicals company Bayer has signed a memorandum of understanding (MoU) with three energy firms – E.ON, Iqony and Westenergie – to establish a hydrogen cluster at its Bergkamen production site near Dortmund, at the eastern edge of Germany’s Ruhr industrial region. At the core of the project will be the production of green hydrogen from imported ammonia.
Korean group picks KBR tech for Malaysian green
By Al Greenwood 08-Jan-24 HOUSTON (ICIS)–A South Korean consortium has chosen KBR’s K-GreeN process technology for a green ammonia project that it will develop in Sarawak, Malaysia, the US-based engineering company said on Monday.
Abu Qir signs MoU for green ammonia project in Egypt By Sylvia Traganida 03-Jan-24 LONDON (ICIS)–North Abu Qir for Agricultural Nutrients has signed a memorandum of understanding (MoU) with ABB International Group, MPS Infrastructure Company, and Petrojet for the supply of green hydrogen and renewable electricity.
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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