Without fertilizers… human life is unsustainable.
Feeding the world and combating climate change
Contents
Fertilizers & food 4
Natural gas 6
Fertilizers & the environment 8
Life-cycle perspective 10
Renewable energy 12
ETS & carbon leakage 14
Industry benchmarks 16
Contacts 18
Fertilizers europe is the new name of the European Fertilizer Manufacturers Association, previously known as EFMA. Our new identity provides immediate recognition of our association as the official, dedicated source of information on fertilizers. This is particularly important because of the vital role the fertilizer industry plays in feeding the world. As the largest representative of mineral fertilizer manufacturers in Europe, we communicate with a broad range of legislators, experts and individual members of the public seeking information on fertilizer technology, as well as a diversity of topics relating to today’s environmental, safety and economic challenges. Our new identity expresses our function in a more direct way and facilitates the exchange of information.
www.fertilizerseurope.com
Our new website is designed to provide the latest information on a range of subjects of immediate relevance to all those interested in fertilizers and their contribution to the world’s food supply.
2
the world will have
3 billion more mouths to
feed by 2050.
Without fertilizers… many will go hungry.
3
Mineral fertilizers provide the only means
to keep pace with the global demand
for food.
Without fertilizers… Europe will lose its self-sufficiency in food and be less able to contribute to world needs.
4
Fertilizers & food
The increasing global demand for food calls for greater agricultural
productivity and improved crop nutrition. By providing the essential
nutrients for predictable crop growth, mineral nitrogen fertilizers
increase crop yields, as well as help compensate for the decreasing
stock of productive land due to urbanisation, soil erosion and
nutrient depletion. Today, European farmers produce more crops
with less fertilizer than they did 20 years ago and their nitrogen-use
efficiency is the highest in the world. Europe must continue to take
full advantage of modern farming practice to maintain its own self-
sufficiency in food production and increase its contribution towards
global food needs. Without mineral fertilizers, agricultural yields around the world would drop between 30 and 85%.
5
Natural gas is a fundamental
raw material for modern fertilizer
production.
Without affordable natural gas… European fertilizer costs will be prohibitively expensive and Europe’s food production will suffer.
6
Natural gas
The availability of food in Europe must not be endangered by
unpredictable prices and uncertain supplies of imported natural
gas. Natural gas is an essential raw material for modern fertilizer
production and the industry is the EU’s largest industrial user. It
relies on a freely available supply of gas at a competitive price to
make the fertilizers European farmers need. However, gas prices
in Europe are among the highest in the world and seasonal and
political factors have already had major impacts on the security
of supply. Greater interconnectivity, storage and transparency
in the European gas market will benefit consumers across the
continent. It is vital that the EU implement the main elements of
the 3rd Gas Market Directive on time. Without an affordable and stable supply of natural gas, european fertilizer production is uncertain.
7
12% of global greenhouse gas emissions come
from changes in land use.
With more efficient use of existing land and greater crop yields, agriculture can minimise its effect on the environment.
8
Fertilizers & the environment
The challenge facing global agriculture is to reconcile the need
for increased food production with that of reducing emissions
of greenhouse gases (GHGs). Since significant emissions come
from changes in land use, it is vital to increase the efficiency of
exitisting farmland. Reducing GHGs is an important driver of EU
environmental and agricultural policies and emissions of N2O
from soil-applied nitrogen and mineral fertilizer production are
already diminishing. The European fertilizer industry is heavily
engaged in promoting good agricultural practice so that farmers
can further reduce GHGs. But when looking at the environmental
impact of fertilizers, the complete nitrogen life-cycle must be
taken into account. Without fertilizers, the world would require an additional 1,100 million hectares of land for agriculture. this translates into an extra 1,650 million tons of Co2.
9
Resource selection
Energy use
Pricing policy
Security of supply Distributionnetworks
Safety
Best available technology (BAT)
Energy efficiency
GHG reduction
Fertilizer type
Transport GHGs
Fertilizer selection
Transport costs
RAW mATERIALS:NATuRAL GASENERGy AND mINERAL oRE
DISTRIBuTIoN FERTILIzERPRoDuCTIoN SHIPPING
Fertilizers & food
Fertilizers & the environment
Life-cycle perspective
10
Land use optimisation
Good agricultural practice (GAP)
Nitrogen use efficiency
Crop typefood/fuel
Crop yield
BIo-ENERGy
Energy balance
GHG reduction
Nutritional value Human nutrition
Good agricultural practice (GAP)
GHG reduction
Co2 sequestration
FooDCoNSumPTIoN
FERTILIzERAPPLICATIoN CRoPPING FooD/FEED
PRoDuCTIoN
Consideration of all the issues within the fertilizer life-cycle/value chain is important in evaluatingthe vital role that mineral fertilizers play in achieving the agricultural productivity necessary for long-term human sustainability. These include the economics of the industry, which must be protected against excessive environmental charges and unfair raw materials costs.
11
Mineral fertilizers play a key role
in meeting the eu’s ambitious
targets for renewable energy.
Without them… Europe will continue to rely heavily on fossil fuels, an unsustainable natural resource.
12
Renewable energy
The development of bio-energy and biofuels are key elements
in the EU’s environmental strategy. Its target of 20% renewable
energy by 2020 and a 10% share for biofuels are driving the
process. Biomass already makes a substantial contribution
to highly efficient combined heat and power plants and an
increasing number of vehicles are today powered by biofuels. By
increasing the yield and the intrinsic energy content of bio-energy
crops, mineral fertilizers help to maximise their energy return,
reduce emissions and optimise land use. In Europe, renewable
energy crops are currently grown on 4 million hectares of idle or
previous set-aside land and to date have had no real impact on
the amount of land used for agriculture, or on food production.
Without fertilizers, europe would need to employ more land to reach its renewable energy requirements, greatly reducing its biodiversity.
13
the european fertilizer industry is deemed to be the sector most
exposed to ‘carbon leakage’.
Without a European fertilizer industry… production will move to less environmentally-conscious regions with far greater carbon emissions.
14
ETS & carbon leakage
Proposed ETS III legislation will inevitably drive mineral fertilizer
production out of Europe. The industry has been shown to be
the most vulnerable to carbon leakage and there are signs
that it is already happening. The allocation of ‘free emission
rights’ is to be based on the performance of the best 10% of
European ammonia and nitric acid plants. 95% of European
fertilizer plants will have to pay for their emissions rights, adding
€1.3 billion to their operating costs. With a global market dictating
fertilizer prices, many plants will no longer be competitive and
will close. ETS III, therefore, should be based on achievable
benchmarks, adopting the ‘best average’ rule in such a way
that minimises carbon leakage. Without suitable benchmarks, ets iii may actually increase global carbon emissions.
15
european fertilizer industry
benchmarks show that it is the world’s most efficient, with low GHG emissions.
Without a phased introduction of emissions rights… further environmental investment is uncertain.
16
Industry benchmarks
The European fertilizer industry is based on modern ammonia
and nitric acid plants using the best available technology.
Fertilizers Europe collects energy efficiency and emissions
data annually from European fertilizer producers from which
it publishes industry benchmarks. Its latest ‘Ammonia Energy
Efficiency and CO2 Emissions’ benchmark was published last
year. Its ‘Emission benchmark’, which monitors emissions of a
large number of substances including N2O, is due for revision
in 2010. The benchmarks show that the industry’s average
performance is not far off the existing best available technology
and provide a fair basis on which decisions affecting the industry
can be based. They show that a further reduction in emissions
is technically possible but will require significant investment and
time to implement. Without a stepwise reduction in emission allowances from 2013, the industry cannot afford to make this investment.
17
Without fertilizers…
human life is unsustainable.
Europe needs a strong fertilizer industry to safeguard its food security and combat climate change.
Corporate
AB Achema, Lithuania
Agropolychim, Bulgaria
Borealis Agrolinz Melamine GmbH, Austria
Anwil SA, Poland
Azomures, Romania
BASF AG SE, Germany
Donau Chem, Romania
Fertiberia SA, Spain & Portugal
GPN, France
GrowHow UK Ltd, United Kingdom
Lovochemie AS, Czech Republic
OCI Nitrogen, Netherlands
Neochim, Bulgaria
Nitrogénmüvek Zrt, Hungary
Zaklady Azotowe Pulawy SA, Poland
Yara International ASA, Belgium
Associations
AiC (Agricultural Industries Confederation), United Kingdom
ANFFe (Asociación Nacional de Fabricantes de Fertilizantes), Spain
AssoFertilizzANti (Associazione Nazionale Fertilizzanti), Italy
BelFertil, Belgium
iVA (Industrieverband Agrar e.V.), Germany
pipC (Polish Chamber of Chemical Industry), Poland
uNiFA (Union des Industries de la Fertilisation), France
VKp (Vereniging van Kunstmest Producenten), The Netherlands
Members of the Association
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Avenue E. van Nieuwenhuyse 4/6 B-1160, Brussels, Belgium
Tel: +32 2 675 3550Fax: +32 2 675 3961
E-mail: [email protected]/FertilizersEuro
www.fertilizerseurope.com
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