Ammonia Technology Roadmap	Chapter 3. Enabling more sustainable ammonia production
Towards more sustainable nitrogen fertiliser production

Developing earlier-stage near-zero-emission technologies

Increased R&D is needed to continue developing near-zero-emission technologies for ammonia production. This will contribute to bringing down technology costs and expanding the portfolio of near-zero-emission technology options, enabling technology choices better suited to regional circumstances. R&D is particularly needed for technologies that are not yet market-ready, such as ammonia production from electrolytic hydrogen produced with VRE. For CCS, which has already been deployed in a number of commercial ammonia plants for EOR, continued R&D could help reduce costs, particularly for the capture step and for energy-related emissions, and further optimise the full CCS value chain. The fertiliser industry could benefit from other sectors’ learnings from applying and scaling up electrolytic hydrogen production, and CO2 capture technologies and transport and storage systems. R&D and demonstration efforts in these technology areas should be seen as a common knowledge pool across sectors, with potential for high rewards from collaboration.

Public-sector financial support for R&D is helpful given the level of risk and the uncertainties of bringing technologies to market. While a number of government R&D funding programmes for near-zero-emission technologies are already in place, increased and more targeted funding would enable faster progress. In particular, funding is needed to allow the ammonia industry to demonstrate production via electrolysis and methane pyrolysis at a commercial scale in different regional contexts. Support may take various forms, such as grants, concessional finance, public-private partnerships, procurement or carbon CfDs. Particularly useful are public finance initiatives that unlock additional private-sector finance by reducing the overall level of risk. Non-financial support from governments can also play a role, such as by co-ordinating knowledge sharing and collaboration on innovation. The ammonia industry itself has an integral role to play in leading R&D and in co-ordinating with other producers and equipment manufacturers.

Key actions

Governments: provide R&D funding and financing for commercial-scale demonstration of key near-zero-emission technologies in ammonia production; co-ordinate innovation knowledge sharing.

Ammonia industry: undertake commercial-scale demonstration of near-zero- emission technologies in difference regional contexts; engage with other producers and stakeholders to share innovation learnings where possible.

Technology suppliers: undertake R&D on near-zero-emission technologies to continue improving them and lowering costs.

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Ammonia Technology Roadmap	Chapter 3. Enabling more sustainable ammonia production
Towards more sustainable nitrogen fertiliser production

Researchers: undertake research in relevant technology and strategy areas, including materials for and the manufacture of electrolysers, absorption solvents for carbon capture and more efficient use of fertilisers.

Improving use efficiency for ammonia-base products

By lowering overall demand, optimising the efficiency of use of nitrogen fertilisers and other ammonia products is an important lever to reduce the sector’s emissions. Farmers and agronomists have a lead role to play in optimising fertiliser application efficiency on farmland, through the “4Rs” and other best practices (see Chapter 2, section “Measures to reduce nitrogen demand”). Tools that farmers can use to support best practice management include reference databases, simulation models, decision support systems, and soil and crop testing. Agronomists can provide advice and assist with developing nutrient management plans. Knowledge exchange among famers may also prove beneficial. The fertiliser industry and the agricultural technology industry also have a role to play by increasing alternative fertiliser options on the market, such as slowand controlled-release and stabilised nitrogen fertilisers, as well as biostimulant products and digital tools to facilitate efficient application.

Government policies can help reduce the inefficient application of nitrogen fertilisers, achieving benefits from reduced CO2 emissions and reduced nitrogen pollution. Countries with policies already in place would do well to examine gaps, and then to fill those gaps through revising their policy framework or improving monitoring and enforcement as needed. Meanwhile, countries without such a framework should adopt suitable policies. Mechanisms may include regulation, such as site-specific limitations on nitrogen application or discharge to the environment, backed by penalties for over-application; requirements to employ catch crops; mandatory reporting on fertiliser application and total nitrogen use; and performance standards requiring increasing use of enhanced-efficiency fertilisers. Researchers have suggested that a possible alternative to solely regulating farmers could be to place nutrient efficiency-related requirements on producers. This would have the advantage of needing to regulate a considerably smaller number of entities. It could take the form of requiring producers to sell a given percentage of enhanced-efficiency fertiliser out of total sales or to achieve a specified nutrient efficiency level upon application. Such policies would take an extended producer responsibility approach and would encourage producers to promote NUE among the farmers who use their product.

Additionally, reform and where possible removal of fertiliser subsidies – which remain quite common today in various countries – will be important. Taxes on fertilisers could also be an option. Subsidy removal and taxes would need to be

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Ammonia Technology Roadmap	Chapter 3. Enabling more sustainable ammonia production
Towards more sustainable nitrogen fertiliser production

carefully balanced with the objective of ensuring fertiliser affordability, particularly in developing economies. Where possible, applying taxes and quotas to surplus fertiliser use, rather than total fertiliser use, could help alleviate affordability concerns.

Governments could also assist by developing and funding information, training, monitoring and evaluation programmes for farmers, as well as R&D on improved fertiliser application decision support systems and the adoption of sustainable farming practices. Crop planning and evaluating which lands to allocate for farming can also influence the use of fertiliser in the longer term. Governments could also provide financial incentives for converting to lower-impact farming practices, such as those that rely less on mineral fertiliser inputs and circular economy approaches that maximise the reuse of nitrogen waste (from crop residues, livestock excreta, food waste, etc.).

Actors throughout food supply chains, including final consumers, can also help reduce fertiliser use by reducing food waste. Citizens may also choose to reduce their consumption of animal products, which would reduce fertiliser needs for livestock feed. Users of other products that require ammonia, including commercial cleaners, pharmaceuticals and plastics, can also examine their use and determine opportunities to increase efficiency and reduce consumption where possible. While it may be difficult to reduce demand from particular applications, such as explosives, relevant end users may nonetheless benefit from examining any potential to reduce overuse or wastage of the relevant products. Government efforts to improve plastic recycling and curb single-use plastics can help reduce the demand that comes from plastics. Given that some of these other end uses consume relatively small quantities of ammonia, efforts to improve their efficiency of use will have a considerably smaller impact relative to efforts to reduce fertiliser use.

Another aspect of the fertiliser-related transition that will need addressing is the potentially growing shift away from urea towards other nitrogen fertiliser types, such as ammonium nitrate. This is driven by the desire to reduce the CO2 emissions that occur when urea decomposes after application to fields. Governments will need to ensure that adequate safety regulations are in place for the transport, handling and storage of ammonium nitrate or other nitrogen fertiliser types. Training for carriers and farmers on the safe handling and use of such fertilisers may also be needed in regions where their use is not common today. Measures in place in regions where they are already more common could be used as models and drawn on for lessons learned when designing similar measures elsewhere.

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