Fertilizer Canada has released a new study on decarbonising the fertilizer production sector

Fertilizer Canada proactively commissioned the report to determine timelines, costs, and feasibility of technologies to work in collaboration with government and inform policies and incentives that support the industry and Canada’s emission reduction goals.

The report found that the variations in types of fertilizer produced, production methods used, and location of the facility require flexibility in technology solutions. The five technologies addressed in the study were carbon, capture, utilisation and storage (CCUS), hydrogen production through electrolysis, small modular reactors (SMR), cogeneration, and electrification of mining fleets. According to the report, SMRs have the greatest potential for GHG emission reductions for the potash sector, but it is not yet commercially available and requires a significant investment to be developed at the scale needed. A combination of electrolysis to produce hydrogen and CCUS used with steam methane reformers have the greatest potential for GHG emission reductions for ammonia production.

Canada’s fertilizer manufacturers and producers have been investing in decarbonisation technologies for decades and continue to, but adoption of technologies with 50% reduction of GHG emissions or greater will require at least five to ten years to implement and could cost upwards of US$1 billion per facility based on similar publicly announced projects.

Fertilizer production is energy-intensive, and as a globally traded commodity Canada’s fertilizer sector must balance reducing emissions and remaining competitive with countries who don’t face the same environmental policies and regulatory barriers, such as Russia and China. Canada provides farmers with sustainably produced fertilizer and our industry is committed to working with government to develop and strengthen policies and regulations that incentivise investment and safeguard against production moving to other jurisdictions that don’t face the same climate policies. Protecting domestic production of sustainable Canadian fertilizer defends against carbon leakage that could increase global GHG emissions.

“The Technology Roadmap showcases technologies which will result in a significant reduction in GHG emissions, however it cannot be viewed as a one size fits all approach,” says Karen Proud, President and CEO, Fertilizer Canada. “Companies will need to assess what technologies align best with their facilities and what are commercially available. However, together with governments we can help to create a regulatory environment which balances both the economic and environmental goals of our member companies and Canada.”

The ability for the fertilizer production sector to decarbonise also relies heavily on investments in infrastructure outside our fence-line including access to a clean, affordable, reliable electricity grid and CO2 pipelines for CCUS. Based on the results of the study, federal and provincial governments should consider the following:

Provide federal and provincial regulatory certainty and long-term commitments that promote investments in decarbonisation technology, along with targeted programmes and investment tax credits that reflect the cost for these technologies. As well as look to other jurisdictions when developing policies and funding mechanisms to emulate their success, ensure Canada is competitive, and protect domestic fertilizer production.

All levels of government work in collaboration with industry to ensure policies reflect realistic timelines for the wide commercial adoption of decarbonisation technologies and adjust funding programmes to support technology at early stages of development such as feasibility and engineering level studies. As well as clarify and simplify regulatory approvals to expedite technology readiness.

Work with industry and stakeholders to build out infrastructure our industry depends on beyond our fence-line to make reductions in GHG emissions, such as CO2 pipelines and a reliable, affordable, clean electricity grid.

Read the article online at: https://www.worldfertilizer.com/special-reports/18102023/fertilizer-canada-has-released-a-new-study-on-decarbonising-the-fertilizer-production-sector/