- FuelPositive is a technology company developing an onsite, containerized, green ammonia production system that decarbonizes and decentralizes ammonia production
- With the world currently experiencing a fertilizer crisis, experts opine that the answer to the issue lies with the adoption of better agriculture practices rather than increased fertilizer production
- On its part, FuelPositive is working on a multi-pronged approach that eliminates not only the greenhouse emissions associated with the production of traditional (“grey”) but also the emissions linked to manure application
- The company is advocating for deep injection of green ammonia into the ground to prevent pollution of groundwater and waterbodies as is the case when manure is used
A recent article in Politico highlights a dire situation in the agricultural sector – a worldwide fertilizer crisis that has seen farmers in both developed and developing countries grappling with high fertilizer prices. The burden, however, is disproportionately higher for those in developing nations, who have less financial capacity and organization to purchase fertilizers than their European counterparts (https://ibn.fm/La85b).
Although the prices were high before Russia invaded Ukraine, the situation has only worsened following the invasion, resulting in a 50% increase in the pre-invasion figures. Coupled with additional factors such as spikes in shipping costs and energy prices, EU sanctions against Russia – which is the top producer and exporter of nitrogen fertilizer, the second-largest producer of potassium, and the third-largest supplier of phosphorus fertilizer – as well as restrictions instituted by Moscow blocking fertilizer exports, this has only worsened the situation.
According to the article, one of the net effects has been an upset of “the delicate balance between ensuring that farmers get paid well enough for their produce while food is affordable enough for consumers.” However, if the prices continue on an uptrend due to such additional factors as high energy prices in the EU, food prices are bound to increase as farmers seek to cover their costs.
The high energy costs in Europe have also threatened fertilizer production, with producers such as Yara delivering 22% less fertilizer to farmers in the second quarter of calendar 2022. But as the article points out, the answer to the fertilizer crisis does not lie in increasing fertilizer production, especially given that overuse can cause environmental degradation by, among other things, upsetting fragile ecosystems.
The solution, experts reckon, is to limit “the overuse of fertilizer by adopting more environmentally-friendly agricultural practices,” a cause that clean energy solutions provider and technology company FuelPositive (TSX.V: NHHH) (OTCQB: NHHHF) is also championing. On its part, FuelPositive has taken a multi-pronged approach that aims to produce green ammonia and push for the adoption of sustainable agricultural practices that eliminate pollution.
Today, about 80% of the ammonia produced globally through energy- and emissions-intensive processes, one of which is the Haber Bosch process, is used in agriculture as a key source of nitrogen for fertilizer. (Nitrogen is agriculture’s most vital nutrient, given that plants absorb more nitrogen than any other element.) With the United Nations having predicted that the global demand for nitrogen fertilizers will have grown by 6% between 2017 and 2022, a growth trend that is set to continue or even accelerate (https://ibn.fm/yWQwj), meeting the demand will require the production of more ammonia. However, traditional methods of generating the compound emit three metric tonnes of greenhouse gases for every tonne of grey ammonia produced, a cause of great concern amid ongoing extreme weather events brought by climate change.
FuelPositive has, therefore, developed an on-farm, containerized, green ammonia production system that decarbonizes ammonia production by relying on renewable electricity to synthesize hydrogen and nitrogen from water and air, respectively, before combining the molecules in a converter to create green ammonia. The system also provides an additional advantage: it decentralizes green ammonia production. This frees farmers from supply chain dependencies that can increase their vulnerability to disruptive events such as wars or price hikes due to increasing shipping prices. Similarly, farmers do not have to rely on manufacturers whose ability to produce and export nitrogen fertilizer is at the whim of government directives, energy prices and catastrophic weather.
The company is on track to be fully validated and ready to deliver the first demonstration system of its green ammonia technology to a farm in Manitoba in the fall of 2022 as part of a demonstration pilot project. Moreover, it is accepting pre-sale orders (https://ibn.fm/N2nvS). FuelPositive believes its green ammonia system will enable farmers to sufficiently produce nitrogen fertilizer and, ultimately, power their generators, grain drying systems, ICE vehicles, and other farm equipment.
In addition, FuelPositive is advocating for the deep injection of green ammonia to solve the emissions problem associated with manure use. A byproduct of farm animals, manure contains ammonia and is sprayed on the ground to act as a natural source of nitrogen. But its use as a fertilizer is considered pollutive when not handled appropriately. For example, manure releases gaseous ammonia into the atmosphere when sprayed on the ground. Additionally, the manure can be moved by rain and runoff into waterways or leech into groundwater, increasing nitrate levels and subsequently impacting the water quality (https://ibn.fm/gybh9).
“In comparison to using manure as fertilizer, deep injection of green ammonia eliminates the emissions associated with manure,” the company’s website reads (https://ibn.fm/FPN3D).
For more information, visit the company’s website at www.FuelPositive.com.
NOTE TO INVESTORS: The latest news and updates relating to NHHHF are available in the company’s newsroom at https://ibn.fm/NHHHF
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