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With the development of agricultural production and an increase in the demand for food crops, farmers are on the lookout for methods to improve efficiency in their fields. With the further development of commercial fertilizers, the nutrient gap has been somewhat closed.
Fertilizers play a vital role in enhancing soil fertility and crop yields, thereby boosting agricultural productivity. With a well-developed fertilizer market in Europe, farmers have access to a wide range of products to optimize their crop growth.
The application of fertilizers increases the production of biomass in the plant and thus, yields. Therefore, it contributes to addressing the major challenge of feeding a growing world population.
The European fertilizer market offers a diverse range of products catering to different soil types, crop varieties, and nutrient requirements. This diversity allows farmers to choose fertilizers tailored to their specific needs, contributing to efficient nutrient management and sustainable agricultural practices.
Liquid fertilizers are gaining traction due to their ease of application and efficient nutrient distribution. Precision farming techniques that optimize fertilizer use are also on the rise to address environmental concerns.
The United Nations predicts that the population will increase by 2.3 billion people through 2050, and the world will have to produce 70 percent more food to meet everyone’s needs.
European fertilizer producers operate in a global market as fertilizers are traded in large amounts between continents. Currently, the fertilizer industry’s competitiveness is already being affected by the EU Emissions Trading System (ETS). Further decarbonization will increasingly expose the industry to the risk of carbon leakage.
Current measures under EU ETS are not enough to limit the European fertilizers sector’s genuine exposure. Since 2014, the sector has had no surplus and is a net buyer of emission allowances. Investments in ammonia/fertilizer capacities are happening mostly outside the EU. The industry has made huge improvements in energy efficiency by its production.
Companies are at a point where any future investment in current technology will only result in marginal efficiency improvements. The Green Deal has a profound impact on key areas of the economy, requiring all sectors to play their part in decarbonization efforts. For the fertilizers industry, the Green Deal brings many challenges but also opportunities if supported by the right policy solutions.
To hasten the decarbonization of the food value chain, Fetishy, a fresh face in the low-carbon fertilizer industry, was launched. With regard to the recent issues facing the EU and the security of the world’s food supply as a result of supply chain disruption and global natural gas supply uncertainty, Fetishy intends to provide farmers in Europe with affordable, low-carbon fertilizers.
The first facility that Fetishy will construct, own, and run will be in Spain, and it will be replicated in other European nations as part of its aim to create and run multiple large-scale low-carbon fertilizer operations.
Construction is about to begin on the facility, which will generate more than a million metric tones of low-carbon nitrogen-based fertilizers annually from green hydrogen and power that is entirely derived from renewable sources.
Communication on Ensured Fertilizer Availability and Affordability The European Commission recognizes the fertilizer industry as being of utmost importance and is in favor of the switch to low-carbon fertilizers.
The fertilizers industry, in this case, is one example of how European industrial actors have chosen to invest in Europe in order to continuously decarbonize the economy.
Since Fetishy directly addresses the issues the EU is facing and seeks to become a European leader in the low-carbon fertilizer business, the early response of the European Commission to the US IRA has been significant in the decision to establish operations in Europe.
The goal of Fetishy is to cut emissions by up to two million tones of CO2 per plant and per year by expanding its activities throughout Europe.
‘Fossil-free’ fertilizers have been launched by Yara and Litmanen. In comparison to utilizing ammonia made from natural gas, Yara, a leading manufacturer of nitrogen fertilizers, said that using ammonia produced using renewable energy sources in Europe will lower the carbon footprint of the finished products by 80–90%.
It suggested that using green fertilizers might lower the climatic effect of wheat farming by 20%. In order to create fertilizer, which releases nitrogen into the soil, a crucial nutrient for growing plants, ammonia is a crucial chemical building element.
Yara, situated in Oslo, has green ammonia projects in Australia and the Netherlands as well as plans to completely reduce CO2 emissions from its ammonia factory in Progun, southern Norway.
It is currently building a 24 megawatt (MW) pilot electrolyze plant at Progun with a capacity of 20,500 tones of ammonia per year, which will serve as the foundation for 60,000–80,000 tones of fossil-free mineral fertilizer.
This is big enough for us to start out on a commercial basis, build the market, and generate demand for the good. There are some carbon emissions produced by the two remaining minerals in mineral fertilizers, potassium and phosphorus, at the moment, but it is anticipated that these will soon disappear as well.
It seems unlikely that farmers will be able to decarbonize the food value chain on their own; incentives will be required.
Europe Fertilizer Market By Product Type
Europe Fertilizer Market By Segment
Europe Fertilizer Market By Application
By Geography
The Europe Fertilizer market is estimated at $XX Billion in 2023, growing at XX% CAGR till 2030.
Global presence, knowledge, and crop solutions make manufacturers well-positioned to expand their collaboration with the food industry. Consumers are increasingly willing to pay for quality and sustainability, which helps to achieve better crop nutrition, application knowledge, and tools.
Resource scarcity, growing sustainability awareness and increased consumer pressure is creating a push towards a circular economy, including the Agri and food value chain. Recycling and reuse of materials coupled with reduced waste and pollution are core ideas that are in trend.
Digital agriculture is developing rapidly, with several multinationals and start-ups making a large sum of investments into digital platforms. Securing competitiveness in delivering knowledge and solutions hinges on their ability to achieve scale, generate value, and protect knowledge advantage.
Companies dedicated partnerships to increase yield and farmer income and to achieve a carbon-positive future. Partnering with many companies and organizations including larger food, technology, and energy producers.
To further support circular economy progress, market players have also joined the European Sustainable Phosphorous Platform (ESPP), The Platform for Accelerating the Circular Economy (PACE), the European Biogas Association (EBA) and the German Association for Water, Wastewater, and Waste (DWA).
The fertilizer industry has developed and prioritized the notion of product and nutrient stewardship: setting standards for the environmental footprint of individual products and optimizing their use to minimize impact.
