Green is the New Gray: How Green Ammonia is Decarbonizing Industrial Agriculture
What is the hydrogen economy and what does it mean for the decarbonization of industrial agriculture? Hydrogen is the most abundant element on earth and it has recently gained traction as a solution for industries that have become increasingly difficult to decarbonize, such as fertilizer production and maritime shipping. In addition to its decarbonization power, hydrogen shows promise as a long-term storage medium in the electricity sector. As a result, fertilizer production companies like Norway-based Yara, are leading the charge to bolster infrastructure for hydrogen conversion into green ammonia, decarbonizing one of the main components in fertilizer. This is the first significant, sustainable step that fertilizer giants have taken to eliminate the significant greenhouse gas emissions involved in fertilizer production and it is symbolic of seismic industry changes to come.
HOW NITROGEN AND HYDROGEN HELP THE FOOD SYSTEM SUPPORT A GROWING POPULATION
In the early 20th century, more than 50% of Americans either farmed the land or lived in rural communities. Many of these farms integrated both crop and livestock production, creating diverse and self-reliant farming systems where cover crops could be eaten by animals and, in turn, their manure would naturally nourish the soil. When soils are naturally abundant with the essential nutrients for plant growth such as nitrogen (N), phosphorus (P), and potassium (K), crops flourish. When we harvest crops, essential nutrients are removed from the soil as they follow the crops from the farm fields to our dinner tables.
As the U.S. transitioned from an agrarian society to an industrialized nation, farming became industrialized too. The industrialization of agriculture throughout the world has radically transformed food production to meet the needs of a growing global population, with much of the success credited to the invention and utilization of nitrogen fertilizers. The application of nitrogen fertilizer on farms increased a hundredfold in the 20th century globally, which produced record yields across geographies. This innovation was key for the food industry to meet global demand for a growing population.
Although modern industrial agriculture is often regarded as the most efficient technique in terms of dollar and cents costs of production, this P&L analysis fails to include the public health and ecological costs of industrialization.
WHY SYNTHETIC FERTILIZER IS IMPORTANT AND WHAT DOES IT HAVE TO DO WITH AMMONIA AND NITROGEN?
Without nitrogen, the world would have no food. Thankfully, the earth’s atmosphere is 78% nitrogen, but unfortunately, plants cannot extract nitrogen from the air. For nitrogen to be utilized by plant roots, it must be converted or “fixed” with oxygen into nitrates (NO3) or with hydrogen into ammonium (NH4). Some nitrogen fixation occurs naturally, through lightning strikes and subsequent rain or through microorganism activity in the soil. These natural processes were sufficient when the U.S. was an agrarian society and could farm with lower yield targets due to less international commodity trade. As we began to industrialize, these processes proved to be too slow to keep up with the rising demand for global food distribution.
The breakthrough development of the Haber-Bosch process to artificially fixate nitrogen and produce ammonia (NH3) was a triumph for the agriculture industry. With the ability to fix nitrogen artificially by combining atmospheric nitrogen with hydrogen to form ammonia, the synthetic fertilizer industry was born. Today, scientists estimate that we could lose nearly one-third of the crops we rely upon without nitrogen fertilizers.
So, what is “green” ammonia — why do we need it to reduce industrial agriculture’s carbon footprint, and how does it contribute to the hydrogen economy?
HOW GREEN AMMONIA CAN BENEFIT BOTH FOOD PRODUCTION AND A GREENER FOOD SYSTEM
Ammonia production now accounts for nearly 1% of global greenhouse gas emissions, and global food production is driving its increased production. Innovation in this space has great potential for a critical point of reduction in the overall carbon footprint of industrial agriculture.
The ammonia industry has informally adopted a color scheme to describe the carbon intensity of the different methods for making ammonia. Conventional (gray/brown) ammonia has been produced the same way for hundreds of years utilizing the Haber-Bosch process. This process makes ammonia with hydrogen and atmospheric nitrogen and uses a lot of fossil fuels — emitting a significant amount of CO2. Conversely, green ammonia is produced with hydrogen that comes from water electrolysis powered by alternative energy. This varies from conventional ammonia because electrolysis eliminates the reaction of carbons, eliminating carbon emissions.
By investing in green ammonia, the agriculture industry can responsibly feed the world all while significantly reducing CO2 emissions. This is why Yara and CF Industries Holdings Inc. have their sights set on the development and mass production of green ammonia. As other fertilizer producers innovate to meet Science Based Targets (SBTs) and consumer demand increases for a low-carbon food supply chain, green ammonia will likely become common practice where possible. With more renewable energy stock internationally, such as solar farms and offshore wind, the market for green ammonia production will compound over the next decade.
HOW INDUSTRIES CAN WORK TOGETHER TO REDUCE THE CARBON FOOTPRINT OF INDUSTRIAL AGRICULTURE
There is a driving force from both public and private entities around the world for the continued research and development of green ammonia fertilizers, but the United States seems to be falling behind countries like Australia, Norway, and Spain. According to the USDA, the U.S. is the global leader in corn production, which is the crop that requires the most nitrogen per acre. There has never been a better time for science, markets, and technology to interoperate in U.S. agriculture. Within the next decade, R&D investments will multiply in low or zero-carbon alternatives for food production and the U.S. financial market will make leaps toward a green economy. This parallel process will drive down the cost of carbon premiums and address the technical challenges on the supply side while creating a market for food products with a low-carbon footprint.
With exponential growth on the horizon for products like green ammonia, it is emboldening that major industry players are already decarbonizing the food system step-by-step. The projects currently underway to reduce or remove emissions from fertilizer applications are part of a historical moment as it brings us closer to Paris Climate Change agreement targets and a truly sustainable food system.
