VINACHEM

Industry group Fertilizer Canada announced it has released a technology roadmap study that looks at five promising technologies that would make meaningful reductions in greenhouse gas (GHG) emissions from ammonia and potash production.

Fertilizer Canada commissioned the report, titled GHG Emission Reductions in the Canadian Fertilizer Production Sector, with financial support from Natural Resources Canada, to determine timelines, costs and feasibility of technologies to work with the government on policies and incentives that support the industry and emission reduction goals.

The group said 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.

The report showed that 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.

The group said Canadian potash is produced with approximately 50% lower GHG intensity compared to global competitors, with extraction through traditional mining representing 15% of production emissions while solution mining represents 24%.

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.

The group said ammonia process emissions represent 64% of total generated emissions, which are fixed by the chemical process and cannot be reduced, but they can be used for other beneficial processes, such as urea production or sale to specialty gas suppliers and third-party liquefaction facilities.

It noted that Canadian ammonia is produced with at least 30% lower net GHG emissions intensity compared to global competitors.

Fertilizer Canada said the nation’s manufacturers and producers have been investing in decarbonisation technologies for decades and continue to, but adoption of technologies with 50% reduction of emissions or greater will require at least five to 10 years to implement and could cost upwards of $1bn per facility.

The group noted that fertilizer production is energy-intensive and Canada’s sector must balance reducing emissions and remaining competitive with countries who do not face the same environmental policies and regulatory barriers, such as Russia and China.

“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,” said Karen Proud, Fertilizer Canada president and CEO.

“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.”

Fertilizer Canada said based on the results of the study, the federal and provincial governments should provide 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.

Further, they should look to other jurisdictions when developing policies and funding mechanisms to emulate their success, ensure Canada is competitive and protect domestic fertilizer production.

In addition, it recommends 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 initial stages.

Lastly, the group urged working with the industry and stakeholders to build out infrastructure beyond the plant facilities to make reductions in emissions with carbon dioxide (CO2) pipelines and a reliable and clean electricity grid.

By the group’s estimates, Canada supplies approximately 12% of global fertilizer.   – ICIS –