Facing Green Push on Farm, Fertilizer Makers Look to Sea for Growth

0
67

Two of the worlds biggest fertilizer producers, CF Industries Holdings Inc and Yara International Asa, are seeking to cash in on the green energy transition by reconfiguring ammonia plants in the United States and Norway to produce clean energy to power ships. The consumption of oil for transportation is one of the top contributors to global greenhouse gas emissions that cause climate change, and fertilizer producers join a growing list of companies adjusting their business models to profit from a future lowercarbon economy.

By altering the production process for ammonia normally usedfor fertilizer, the companies told Reuters they can producehydrogen for fuel or a form of carbonfree ammonia usedeither as a carrier for hydrogen or as a marine fuel topower cargo and even cruise ships.

The shift may improve their standing with environmentminded investors as fertilizer emissions attract greater government scrutiny in North America and Europe. But the green fuels are not yet commercial and willrequire significant investment to turn a profit a realitythat has the worlds largest fertilizer producer, Canadas Nutrien Ltd, staying out of the space for now. Oslobased Yara is seeking government subsidies to proceed. Still, renewable ammonia represents a 6 billioneuro 7.25 billion opportunity for fertilizer producers by 2030, according to Citibank, based on 20 million tonnes of annual sales globally for clean power and shipping fuel compared with virtually none now. Global ammonia…

LEAVE A REPLY

Please enter your comment!
Please enter your name here