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UK to Implement Solid Urea Fertilizer Rules in 2024, But Opts for Industry Self-Regulation

The UK’s Department for Environment, Food, and Rural Affairs (Defra) is moving ahead with plans to implement rules for ammonia mitigation with solid urea fertilizers, requiring all farmers in England to use inhibitors or other permitted forms of mitigation after April 1, 2024.

However, the department has agreed with the National Farmers Union (NFU) and industry partners that self-regulation by the farming industry will work best for enforcement. The guidelines will be applied through the UK’s Red Tractor Assurance Standard, a food chain assurance scheme that underpins the high standards of British food and drink.

The commitment made with the government is that by 2024-2025 all farmers in England will be able to meet the new requirements and all fertilizer containing urea will have to be protected against ammonia emissions if spread after April 1 each year.

This will apply unless ammonia mitigation has been achieved by incorporating the fertilizers into the soil or with sufficient irrigation, as determined by a registered qualified professional for the Fertiliser Advisers Certification & Training Scheme (FACTS), a nationally validated course developed by the UK fertilizer industry as a form of self-regulation.

“We believe working together across the industry to deliver greater nitrogen use efficiency for all nitrogen fertilizers is the best route forward,” said Robert Sheasby, CEO of the Agricultural Industries Confederation (AIC), a UK trade association representing the agricultural supply chain sectors of arable marketing, crop protection and agronomy, feed, fertilizer, and seeds.

“By utilizing existing farm assurance structures, farmers will be able to retain the use of solid urea, providing flexibility to use the right product at the right time to minimize environmental impact, whilst ensuring healthy plant growth and a competitive fertilizer sector,” he said.

The Minister of State for Food, Farming, and Fisheries earlier warned that the government would impose regulations if farm leaders failed to introduce an industry scheme to reduce ammonia emissions. The regulation was due to come into effect last year, but due to soaring fertilizer prices following Russia’s invasion of Ukraine, Defra agreed to delay implementation until April 1, 2023 (GM April 1, 2022). In February this year, the department agreed to delay the implementation by a further year (GM Feb. 3, p. 28).

After originally considering a potential total ban on the use of solid urea fertilizer in the UK, Defra decided on an alternative approach put forward by industry that untreated urea could be used by farmers from Jan. 15 to March 31 each year, but any product spread after April 1 would have to be treated with a urease inhibitor to slow the release of ammonia.

The UK consumed some 137,000 mt of dry urea for fertilizer use in 2020, according to the latest IFA data. The country has no domestic urea production, and demand is currently met entirely by imports.

OCP Highlights Investment Plans

OCP Group SA said it plans to open a new phosphate mine in Meskala in Morocco’s Essaouira Province and to build a new fertilizer production complex at Mzinda. The new fertilizer facility will process rock from the mines at Benguerir and Youssoufia, as well as from the new mine of Meskala.

The plans are a key part of OCP’s second phase of its investment program, announced last December, which the group said will see global investments of about $13 billion over the 2023-2027 period (GM Dec. 9, 2022). The investment program is aimed at increasing OCP’s mining and fertilizer production capacities while achieving full carbon neutrality by 2040 by including sustainability investments around solar energy, water, and green ammonia.

The program is targeting an increase in fertilizer production capacity from the current 12 million mt/y to 20 million mt/y by 2027, and includes plans to produce 1 million mt/y of green ammonia by 2027.

Borealis Sees 18% Drop in 2022 Fertilizer Sales; Expects Nitrogen Divestment to Close in Q1

Vienna-based Borealis AG said its fertilizer sales reached 3.21 million mt last year, an 18% decrease from the 3.91 million mt sold in 2021. The company on March 24 said the decline was the result of lower demand due to high gas prices and competitively priced urea imports into Europe.

Borealis now expects the sales of its Nitrogen business to the Czech Republic’s chemicals and fertilizer company Agrofert to close by the end of the first quarter. It initially had expected the deal to close by the end of 2022. Agrofert’s offer valued the business on an enterprise value basis at €810 million (approximately $878 million at current exchange rates).

Borealis received a binding offer for the business, which includes fertilizer, melamine, and technical nitrogen products, from the Czech company last June (GM June 3, 2022). On March 13, the European Commission “unconditionally” approved the deal (GM March 17, p. 30).

“The war in Ukraine and the sanctions imposed as a consequence have led to some delays,” said Borealis CFO Mark Tonkens on the company’s protracted divestment of the nitrogen business. “On careful deliberation, we declined the initial binding offer received from EuroChem in March and restarted the process. Agrofert emerged in June as the best bidder in the next divestment round.”

Tonkens said Borealis’ Executive Board is confident that Agrofert, a leading European fertilizer player, is committed to maintaining supply security and the long-term development of the production facilities.

The conclusion of the transaction with Agrofert, along with the sale in January of its shares in Belgian fertilizer company Rosier S.A. to Turkey’s Yildrim Group (GM Jan. 6, p. 29), will enable Borealis to sharpen its focus on providing “innovative and value-added solutions” in the fields of advanced circular polyolefins and base chemicals, the company said.

Laos, Sino-Agri Ink MOU for Potash Park

The Laos government and Sino-Agri International Potash Co. signed a Memorandum of Understanding (MOU) on March 26 for the development of “the Asia-Potash Intelligent Circular Industrial Park” some 250 kilometers from the country’s capital, Vientiane, in Laos’ central Khammouane Province, according to a report by China’s Xinhua news agency.

Sino-Agri is a subsidiary of Asia-Potash International Investment (Guangzhou) Co. Ltd., based in China’s southern Guangdong Province, and has the right to exploit 35 square kilometers of potash salt deposits in Laos’ Khammouane Province.

The proposed park will receive about $4.31 million in investment and will be separated into three sectors, one of which will be a potash fertilizer sector that will be used to develop an industry based on local potassium ores, according to Xinhua, citing Sino-Agri Managing Director and General Manager Tong Yongheng.

According to Yongheng, the project aims to expedite the growth of the potash fertilizer industry in Laos, which is targeted to reach a production capacity of 10 million mt/y, he said.

Potash fertilizer output of Chinese companies active in Laos was 1.5 million mt in 2021, and is targeted to reach 5 million mt in 2025, according to an April 2022 report by Guosen Securities, a Chinese state-owned financial services company headquartered in Shenzhen, China.

According to Trade Data Monitor, a total of some 592,598 million mt of Laos potash was imported by various countries in 2021. Of that total, China was the biggest importer, taking 416,627 mt, increasing its imports of Laos potash to 606,987 mt in 2022.  Indonesia and Thailand were the next biggest importers, both in 2021 and in 2022.

Importers of Laos Potash (mt)

Importer  2021 2022
China 416627 606,987
Indonesia 96,405 223,611
Thailand 60,664 63,522
Malaysia 2,310 43,700
South Korea 4,717 36,243
Philippines 9,855 9,919
Japan 1,060 8,840

Sino-Agri’s exploitation area in Khammouane Province has a proven K-Mg ore mf reserve of over 1 billion mt, equivalent to 152 million mt of “pure potassium chloride resources,” according to Asia-Potash International’s website.

According to Asia-Potash, the subsidiary company started construction of a 500,000 mt/y potash production project in its exploitation area after earlier completing a 100,000 mt/y potash fertilizer pilot project, and is ultimately targeting production of 1 million mt/y.

The two other sectors in the proposed industrial park will comprise “a non-potash” sector focused on “enriching resource utility with local coal, bauxite ore, and other associated resources from the potash industrial line,” Xinhua reported.

The third sector, the Asia-Potash village, aims to attract investors and talent to accelerate the urbanization of Laos. Once operational, the project is anticipated to add $320 million to Laos’ annual fiscal revenue and employ 30,000-50,000 local people, according to Xinhua.

Grupa Azoty Police Inks Deal on MMR Reactor

Zakłady Chemiczne “Police” SA, a subsidiary of Polish fertilizer and chemicals group Grupa Azoty, has inked an agreement with US-based Ultra Safe Nuclear Construction (USNC) and the West Pomeranian University of Technology in Szczecin to develop and construct a nuclear energy research facility based on USNC’s Micro-Modular (MMR) reactor technology.

Over the next six months, the parties will prepare a research program and a plan for the construction and operation of the MMR, Azoty said in a March 29 statement.

The collaboration is aimed at developing the full-scale use of nuclear energy to power chemical processes and generate steam and hydrogen at Azoty Police’s unit, Azoty said, adding this will represent another major step towards decarbonization of the fertilizer and chemicals group’s industrial processes.

NTPC to Supply Green Power to Greenko Ammonia Unit

NTPC Renewable Energy Ltd. has signed a term sheet with Greenko ZeroC Pvt to supply 1,300 MW of renewable power to Greenko’s upcoming green ammonia plant at Kakinada, according to Bloomberg, citing an exchange filing by the Indian state-run utility.

NTPC said the agreement is one of the world’s single largest contracts for supply of round-the-clock renewable power for an industrial client. Greenko’s Kakinada project is a multi-phase green ammonia production and export facility adding up to 1 million mt/y of green ammonia production capacity by 2027 (GM Feb. 10, p. 31).

Saskatchewan First Act Enacted

The Government of Saskatchewan on March 16 passed The Saskatchewan First Act, which it said defends the province’s economic autonomy and potential from federal overreach. The Act amends the Constitution of Saskatchewan to confirm Saskatchewan’s autonomy and assert Saskatchewan’s exclusive legislative jurisdiction under Section 92 (A) of the Constitution of Canada over a number of areas, including:

  • the exploration for non-renewable natural resources;
  • the development, conservation, and management of non-renewable natural and forestry resources; and
  • the operation of sites and facilities for the generation and production of electrical energy.

The Act will also create an independent Economic Impact Assessment Tribunal that will define, quantify, and report on the economic effects of federal initiatives on provincial investments and Saskatchewan projects, businesses, and people.

“This Act protects our province from constitutional overreach by the federal government,” said Justice Minister and Attorney General Bronwyn Eyre. “We will always stand up for Saskatchewan people against policies that hurt our economic potential and growth.”

Following discussions with First Nations and Métis people and organizations, amendments were introduced by Athabasca MLA Jim Lemaigre to specifically state that nothing in the Act abrogates or derogates from Aboriginal and Treaty rights.

“Treaty rights are already enshrined and protected in all provincial legislation, as well as Section 35 of the federal Constitution Act, 1982,”Eyre said. However, I welcome the amendments from the Member from Athabasca which provide even further clarity and certainty about our government’s respect for treaty rights.”

Bi-Partisan Bill to Boost Fertilizer Research

US Reps. Randy Feenstra (R-Iowa) and Haley Stevens (D-Mich.) on March 23 introduced the Quantum in Practice Act, which would amend the National Quantum Initiative Act to include quantum molecular simulations and modeling in federal scientific research. More specifically, quantum molecular simulations and modeling will allow experts to study chemical elements and reactions with enhanced accuracy.

This new research on molecules can then be used to develop new materials and manufacture complex chemical reactions beneficial to a plethora of economic sectors.

Alongside House Science, Space, and Technology Chairman Frank Lucas (R-Okla.) and Ranking Member Zoe Lofgren (D-Calif.), U.S. Reps. Young Kim (R-Calif.), Jake Ellzey (R-Texas), Rick Crawford (R-Ark.), Byron Donalds (R-Fla.), Nancy Mace (R-S.C.), Brian Fitzpatrick (R-Pa.), Rudy Yakym (R-Ind.), Brandon Williams (R-N.Y.), Tom Kean (R-N.J.), Joseph Neguse (D-Colo.), and Jeff Jackson (D-N.C.) are original cosponsors.

U.S. Senators Todd Young (R-Ind.) and Raphael Warnock (D-Ga.) have introduced companion legislation in the US Senate.

“From fertilizer production to materials manufacturing, quantum computing has the untapped potential to lower input costs for our farmers, improve energy storage, and produce more effective medications for patients,” said Feenstra. “I’m proud to introduce the Quantum in Practice Act to ensure that our main streets, farmers, and small businesses can realize the real benefits of quantum computing, not just in theory, but in practice. Thanks to scientific ingenuity, there is boundless opportunity for our rural communities to harness the power of quantum computing to strengthen our agricultural sector, streamline fertilizer production, and enhance our way of life in the 4th District.”

According to the bill’s proponents, the potential scientific discoveries across industries and sectors include, but are not limited to:

  • Fertilizer – Modeling the nitrogen fixation process utilized by bacteria, which could be used to develop synthetic fertilizers without the high energy and material costs of current methods, creating the next generation of fertilizers.
  • Safer Medicines – Creating more effective medications and reducing harmful interactions or side effects.
  • Energy Storage – Developing new materials to increase energy storage capacity and create more powerful battery technologies.
  • New Metals – Developing lighter, stronger metals.
  • Protective Gear – Creating materials for more durable protective gear for law enforcement and military.
  • Conductors – Developing new types of superconductors.

ADNOC Inks MOU with German State, Industry

Abu Dhabi National Oil Co. (ADNOC) on March 27 announced that it will explore opportunities to support the climate-neutral transformation of industry through the creation of a low-carbon ammonia value chain with state government and industry representatives in Germany’s North Rhine-Westphalia.

The announcement was made following the signing of a Memorandum of Understanding between the Government of North Rhine-Westphalia, ADNOC, and Currenta GmbH & Co. OHG (Currenta), a chemical industry services provider that manages and operates one of the largest chemical sites in Europe, Chempark, with locations in Leverkusen, Dormargen, and Krefeld-Uerdingen, in North Rhine-Westphalia.

The primary focus of the agreement will be the production and transportation of low-carbon ammonia and its application as a fuel in energy generation, including industrial-scale testing at Currenta’s site in Dormagen, Germany.

ADNOC has already invested in low-carbon ammonia, where the carbon dioxide emitted during production is captured and stored underground. In May 2021, the company announced a 1 million mt/y low-carbon ammonia production facility at the TA’ZIZ industrial ecosystem and chemicals hub in Ruwais, Abu Dhabi (GM May 28, 2021).

The company has significantly expanded its strategic energy partnerships across the hydrogen value chain and has shipped demonstration cargoes of low-carbon ammonia to customers in Asia and also to Germany as part of the UAE-Germany Energy Security and Industry Accelerator (ESIA) Agreement.

FuelPositive Touts Sales Orders for NH3 System

FuelPositive, Waterloo, Ont., which plans to produce on-farm/onsite, containerized green ammonia production systems, reported that the company’s pre-order sales initiative has received commitments for the first production target batch of five systems.

As a result, the company said it has been able to expand its initial target from a batch of five to 30 systems, with many systems already assigned. In addition, the company said it is receiving at least one inquiry per day for its systems from all around the world.