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How biomethane is transforming sustainable ammonia production and driving the transition to cleaner energy
Yara bets on biomethane for sustainable ammonia production
A Yara, a leading Norwegian fertilizer manufacturing company, has taken a revolutionary decision by adopting the biomethane as a substitute for natural gas in the production of sustainable ammonia. In September 2023, the company officially started this operation at its Industrial Complex in Cubatão, São Paulo. This choice, in turn, brings an impressive reduction of up to 75% in carbon emissions when compared to traditional ammonia, which relies on fossil sources.
Due to this innovation, the company expects to produce between 6 to 7 tons of sustainable ammonia per year, which should generate 15 thousand tons of fertilizers annually. According to Yara itself, the first batches of this ammonia have already begun to be used in the Brazilian market in October 2023, reinforcing the company's commitment to energy transition.
Biomethane: a renewable source that drives green energy
O biomethane, provided by root, is produced from agro-industrial waste such as vinasse and filter cake. The biomethane production plant, located in Piracicaba (SP), began operating in 2022, with capacity to process up to 60 thousand cubic meters of gas per day. This gas is transported directly to the Yara Industrial Complex, where it replaces conventional natural gas.
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Second Daniel Hubner, Yara's vice president of industrial solutions, the conversion to the use of biomethane in the industrial plant was carried out quickly and without the need for major investments in infrastructure. Therefore, in an interview with EXAME Magazine, Hubner stated: “The main transformation was to replace a fossil and finite molecule with a renewable and infinite molecule.”
Despite the progress, the company revealed that, to achieve the complete decarbonization of the plant, at least 10 additional projects similar to Piracicaba. Thus, biomethane represents an important step, but there are still challenges to expanding its scale.
Infrastructure and energy transition challenges
On the other hand, conversion to the use of biomethane showed up quite accessible. As the process did not require large investments in infrastructure, the company was able to move forward quickly on the project. However, the high cost of natural gas in Brazil still presents itself as a significant obstacle for the competitiveness of ammonia production.
In September 2023, during the Brazilian Energy Transition Forum, Hubner emphasized the need to more effective public policies to enable the energy transition. He highlighted that, “Talking about energy transition is essential, but it is even more important to ensure the survival of companies in this process.”
Sustainable ammonia: a viable future with appropriate policies
Before expanding sustainable ammonia production, Yara seeks to consolidate a consumer market that values the product. In this context, the first strategic partnership was announced in August de 2023 with the cooperative Cooxupé, the largest coffee exporter in Brazil. Thus, the goal of this alliance is reduce the carbon footprint of coffee production by 40% already in the harvest of 2024.
Furthermore, Yara reported that it is in negotiations with citrus and other crop producers, strengthening the integration between different sectors of the green economy. In statements to the newspaper Valor Econômico, the company stated that “the future of green energy depends on joint initiatives and the creation of markets that value low-carbon products.”
Thus, the sustainable ammonia is consolidated as a viable solution for the decarbonization of important sectors. Yet, structural policies and government incentives will need to ensure that production costs do not make large-scale adoption unfeasible.
Impact on agribusiness and the fertilizer market
Agribusiness plays a strategic role in increasing the demand for low-carbon fertilizers. Thus, in October 2023, Yara has stepped up efforts to promote partnerships with cooperatives and farmers, strengthening a more efficient and sustainable production chain.
In addition, the use of biomethane in the manufacture of fertilizers positions the Brazil as a global reference in green energy. The agricultural sector, in turn, stands out as one of the most capable of leading the energy transition, especially in high value-added crops such as coffee and citrus.
Lastly, the integration between technological innovation and market strategies will be decisive for the success of this model. With adequate incentives and robust partnerships, sustainable future of ammonia production is within reach.
