Decarbonising Fertilizers and food
Decarbonising Fertilizers and food
European Fertilizer industry’s ambitions
European Fertilizer industry’s ambitions
2026
Decarbonisation masterplan
by 2026
2040
70% GHG emission reduction
by 2040
2050
Climate-neutral by 2050
Pathways to a decarbonised future
Pathways to a decarbonised future
Technology neutral pathway
Decarbonisation through
a combination of technologies
From 2005 to 2020,
the EU fertilizers industry already reduced its scope 1 and 2 emissions by 49%.
Green Hydrogen pathway
Decarbonisation
through electrolysis
Currently ammonia is produced by combining nitrogen and hydrogen in the Haber-Bosch process with the hydrogen produced from natural gas in a Steam Methane Reformer (SMR).
Alternative production technologies to reduce and eliminate GHG emissions include replacing natural gas as our primary feedstock with bio-methane or biogas, capturing and storing CO2 generated in the production processes and large-scale electrolysis.
Fertilizer plants are strategically located across Europe based on the availability of natural gas, raw materials, logistics infrastructure and proximity to agricultural markets. For a successful transition, the availability of sufficient competitively priced low-carbon and renewable electricity, biomethane or hydrogen, and CO2 infrastructure is key. In addition, proximity to ports (for ammonia imports if required), availability of nutrients (for recycling) and water are also important factors.
Fertilizer plants are strategically located across Europe based on the availability of natural gas, raw materials, logistics infrastructure and proximity to agricultural markets. For a successful transition, the availability of sufficient competitively priced low-carbon and renewable electricity, biomethane or hydrogen, and CO2 infrastructure is key. In addition, proximity to ports (for ammonia imports if required), availability of nutrients (for recycling) and water are also important factors.
Cost of technological change
€17 billion
electrolysers only
€3 billion
a hydrogen pipeline network
€64 billion
for offshore wind parks
5 prerequisites to boost decarbonisation and strategic autonomy of the EU
ENABLE AND PROMOTE ACCESS TO SUSTAINABLE ENERGY AND FEEDSTOCK
Access to affordable green and low carbon energy is essential to bridge the competitive gap between Europe and competing regions.
BOOST DEMAND FOR CLIMATE-NEUTRAL EU FERTILIZERS
Boost demand for climate-neutral EU produced fertilizers through a labelling system accompanied by a mandatory purchasing target for all EU nitrogen fertilizer purchasers
STIMULATE TARGETED INVESTMENT
Implement measures to ‘de-risk’ the early investment required to close gaps between the cost of the proposed alternative routes and current production routes. Promote dedicated funding programs such as the hydrogen bank with a sector specific approach in order to enable investments in required technologies to achieve climate neutrality.
PREVENT AN UNFAIR COMPETITIVE ADVANTAGE FROM NON-EU PRODUCERS
Ensure timely and effective development and implementation of the Carbon Border Adjustment Mechanism to prevent unfair competitive advantage for non-EU producers importing to Europe. Develop and provide concrete safeguards to guarantee continuous competitiveness of European export-oriented production.
PROVIDE A SUPPORTIVE LEGAL AND FUNDING FRAMEWORK
Enable rapid and targeted access to public funding and/or support and facilitate the permitting or licensing for construction of facilities to enable the transition – including new-build or refurbished nitrogen fertilizer plants, renewable electricity generation and retrofitted infrastructure.
Event
Join us in Brussels on 14 of November, where we will unveil the Roadmap to Climate Neutrality and discuss what is needed to ensure a successful transition.