According to the company, shift reduces the carbon footprint by 75%
12/09/2024
Norwegian agricultural giant Yara has started using biomethane as a substitute for natural gas in its production of sustainable ammonia. According to the company, this shift reduces the carbon footprint by 75% compared to traditional ammonia derived from fossil fuels. Yara aims to produce 6,000 to 7,000 tonnes of sustainable ammonia annually, generating approximately 15,000 tonnes of fertilizer per year.
Ammonia, a key component in nitrogen-based fertilizers, is also used in industrial solutions. The biomethane utilized in the process is derived from ethanol and sugar production waste, such as vinasse and filter cake. This renewable feedstock is produced by Raízen in Piracicaba, São Paulo, and supplied to Yara’s Cubatão Industrial Complex.
Daniel Hubner, Yara’s vice president of industrial solutions, emphasized the renewable nature of filter cake as raw material and noted Brazil’s significant potential to leverage this resource. He explained that the conversion of the plant to biomethane required minimal investment in infrastructure or internal processes. “The main change was replacing a fossil, finite molecule with a renewable, infinite one,” Mr. Hubner said, without disclosing the investment amount.
Despite this progress, low-carbon ammonia represents only a small fraction of the company’s overall production. “To decarbonize the entire plant, we would need ten more projects like this one,” Mr. Hubner said. While Raízen’s biomethane facility can process 60,000 cubic meters of methane daily, Yara’s full plant requires 700,000 cubic meters per day.
Mr. Hubner also highlighted the challenges posed by fluctuating natural gas prices in Brazil, which significantly impact ammonia production costs. “The cost of natural gas is fundamental for ammonia production and much of the chemical industry,” he stated, urging the government to implement more effective energy transition policies to enhance the sector’s competitiveness. “Natural gas prices in Brazil are unsustainable. While we talk about energy transition, it’s vital for the company to remain viable. Government plans must move from paper to action to make this competitiveness a reality for consumers.”
Market and partnerships
Guilherme Schmitz, Yara’s vice president of marketing and agronomy, stressed the importance of building market demand before expanding low-carbon ammonia production. “We need to create a market of consumers willing to pay for this,” he said, pointing to partnerships with agricultural and food companies as critical steps.
Yara expects a 40% reduction in the carbon footprint of coffee production within its supply chain starting next harvest, thanks to a partnership with the Cooxupé cooperative. The company is also negotiating additional partnerships with companies and cooperatives in coffee, citrus, and other crops to further its sustainability initiatives.
*By Gabriella Weiss, Globo Rural — Cubatão
Source: Valor International