Fertilizer prices have been on a rollercoaster in past few years. While they have stabilized in 2024, compared to 2021-2023, the World Bank reports that prices remain higher than pre-2020 levels, meaning that grey fertilizers are more expensive than before.
Why does this matter? Because most fertilizers rely on natural gas, making them both:
- Carbon-intensive: Fertilizers (especially nitrogen-based types) production accounts for 10% of agricultural emissions.
- Price-volatile: Spikes in natural gas prices increase the cost of ammonia, a key ingredient in fertilizers.
This dual problem of rising emissions and unpredictable prices threatens food security by making fertilizers less affordable. Higher costs reduce farmers appetite for fertilizers, leading to lower yields or reduced crop quality and eventually impacting the food supply.
Green hydrogen and green ammonia offer a way out. Shifting to green fertilizers can cut emissions and reduce exposure to fossil fuel price swings. In the future, the price gap between grey and green fertilizers may even disappear.
It’s time to break free from grey fertilizers and invest in a more sustainable and secure food system through producing green molecules!
Read the full World Bank article: https://blogs.worldbank.org/en/opendata/fertilizer-prices-stabilize-amid-lower-input-costs-and-trade-shi
