Breaking new ground: decentralised renewable nitrogen fertilisers

The current production and supply of ammonia and nitrogen fertilisers relies heavily on fossil fuels and presents significant inefficiencies, making it a key policy question as countries seek to secure critical industrial supply chains in a climate-resilient manner. Currently, the fertiliser sector accounts for around 1.3 percent of global greenhouse gas emissions. At the same time, demand for fertilisers continues to grow, particularly in the Global South, driven by population and economic growth and expanding agricultural needs. The market for ammonia and nitrogen fertilisers is imbalanced, with many countries in the Global South lacking the production facilities to meet current and future demand.

New strategies for ammonia and nitrogen fertiliser production aim to diversify supply chains and promote domestic production. This can present an opportunity for renewable-rich countries in the Global South to develop a low-carbon industry, create local value chains, and mitigate their reliance on fossil fuels and the volatile global fertiliser market. Decentralised renewable ammonia and nitrogen fertiliser production is being implemented in different regions as a complementary strategy to accelerate the decarbonisation of this industry.

This study by our partners Agora Industry aims to inform discussions on the adoption of decentralised renewable ammonia and fertiliser production in Global South countries. The study scopes the competitiveness of renewable-based decentralised production technologies and addresses important social and environmental considerations. Finally, it presents policy recommendations to provide decision-makers and policy experts in relevant countries with a basis to consider adopting the renewable, decentralised production of ammonia and nitrogen fertilisers.