The Future of Phosphate Rock Bayovar 12 Project in Peru
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Fertilizer FOCUS JANUARY/FEBRUARY 2018 The future of phosphate rock Bayovar 12 project in Peru European Union ETS update | Fertilizer Brazilian FOCUS freight | JANUARY/FEBRUARY logistics | Precision 2018 nutrient management 2 Fertilizer FOCUS | JANUARY/FEBRUARY 2018 Fertilizer FOCUS CONTENTS 4 EU ETS update 5 The stabilization of nitrogen fertilizer 8 End-to-end nitrogen efficiency 14 News in brief 19 EU fertilizer regulations for biostimulants 22 EU regulations for organic-based fertilizers 24 Price watch 28 Climate smart fertilizer management 32 Controlled release fertilizers 36 Conference preview: Argus Added Value Fertilizers Europe 2018 37 SOUTH AMERICA FOCUS 38 The Brazilian fertilizer market 44 Evolution of fertilizer production in Brazil 48 The future of phosphate rock and Focus Venture's phosphate rock mining project in Peru 52 Specific crop requirements in Argentina 55 Fertilizer logistics in Brazil 60 Improving crop productivity in India 64 Shipping & freight news 67 Fertilizer additives 70 People & events 71 Manganese focus Fertilizer Focus Argus Lacon House, 84 Theobald's Road, London, WC1X 8NL, UK Tel: +44 (0)20 7780 4340 Front cover image: Email: [email protected] Geologist logging core; Courtesy of Focus www.argusmedia.com/fertilizer Ventures Ltd Fertilizer FOCUS | JANUARY/FEBRUARY 2018 3 European Union ETS update by Dr. Antoine Hoxha, Technical Director and Leondina Della Pietra, Senior Scientific Officer, Fertilizers Europe The European Union Emission Trading Scheme (EU ETS) is the European trading scheme for EU average N2O emission rate greenhouse gas launched by the EU Commission as a reduction measure for greenhouse gas emissions (GHG), consequence of the global warming of the latest years. ETS affects most of the industrial installations in the 28 Member States plus Iceland, Liechtenstein and Norway. In order to comply with ETS, each year companies have to declare the greenhouse gases emitted during a period of time established (so called ETS ‘phase’). Free allowances are allocated for each ETS phase, and in order to fulfill the requirements established for that phase under the ETS Scheme whether the emissions exceed the total number of free allowances, they need to be bought. This is the main pillar of the scheme, the so called ‘cap and trade’ principle. The carbon footprint of European ammonium nitrate fertilizer Currently we are in phase ETS III (2013-2020) that outperforms production from other regions covers for the first time the fertilizer industry. The main sources of GHG emissions in production of fertilizers are CO2 from ammonia plants (part of which is process emissions) and N2O from nitric acid plants. Political discussions for the next phase ETS IV (2021- 2030) started already in 2015. The fertilizer industry has a special position in ETS as it is the sector most exposed to carbon leakage. Indeed competitors in other regions of the world will not face these costs and production might shift outside EU. The mineral fertilizer industry has been allocated a significantly lower allowance balance relative to other industrial sector, as a recent study by consultants ECOFYS shows, and due to the fact that the target imposed by the EU Commission in the phase ETS IV “However, I take some comfort from the fact that the result of the (reduction of 40% in overall emissions) will be difficult trilogue negotiations concedes that some sectors cannot achieve to meet, the fertilizers sector will be subject to a direct important emission reductions and therefore agreed on a lower carbon cost automatic benchmark reduction rate of 0.2% yearly, thus implicitly On top of this, the fertilizers industry has limited recognizing the physico-chemical limitations of our process,” says technical opportunities to further reduce its emissions Jacob Hansen, Director General of Fertilizers Europe. due to high level of process emissions in ammonia In parallel to legislative developments, Fertilizers Europe, European production. On the nitric acid production, in the recent industry’s fertilizers association, has developed a Carbon Footprint years, the EU fertilizers industry has invested in GHG Calculator (CFC) tool in order to help its members understanding the emission reductions. The graph below shows the trade emissions scheme. The tool is available on line at http://app. spectacular decrease in of N2O emissions over the last calcfert.com, freely accessible to everyone, on demand. ten years of 90%. Therefore, the sector advocated it This tool allows users to estimates the greenhouse gas (GHG) emissions should be clearly differentiated from other industries. generated during the fertilizer production, including both direct and On 9 November 2017 the negotiators from the indirect emissions from energy supply. To give you an example, from European Parliament, the Council and the European the graph below based on calculations using the verified CFC tool, CO2 Commission agreed on the new rules for this phase. emissions from fertilizer products in Europe are the lowest compared to “We had brought forward the idea of a tiered other regions. correction factor, in case there is a need, as the fairest The calculator has been validated by an independent third party. solution for all industries. Despite having it reflected in Furthermore, footprints can also be certified via a ‘Certification Scheme’ the European Parliament position, it did not survive the when footprints have to be publically used and communicated for legal negotiations in the trialogue”, explains Jacob Hansen, reporting, social responsibility reports and/or for food chain reporting and Director General of Fertilizers Europe. “I regret that.” communication purposes. 4 Fertilizer FOCUS | JANUARY/FEBRUARY 2018 The stabilization of nitrogen fertilizer by Calum Findlay, Fertilizer Manager, Gleadell Agriculture Stabilized nitrogen products are This excess ammonium is at risk of a step further when it developed starting to gain momentum in the being lost to the environment through Alzon 46, incorporating a nitrification European marketplace. Larger volatilization, where ammonium is inhibitor into urea fertilizer. merchants are backing the products converted to ammonia gas and lost to and farmers are becoming persuaded the atmosphere. However, ammonium of the role stabilized fertilizers can is relatively short-lived in the soil. It High efficiency play in reducing nitrogen losses from is readily converted by Nitrosomanas This inhibitor reduces the rate of volatilization and leaching. bacteria to nitrite, which is conversion of ammonium, which is subsequently converted to nitrate by Keeping more nutrients where they are relatively stable, to nitrate. It also means another group of bacteria, Nitrobacter. needed enables plants to exploit more, smaller amounts of nitrate are released This process is known as nitrification. improving yields and quality and over a given period, which evens out benefiting the environment. Nitrate is readily available to plants supply and leads to a high efficiency of but is also highly mobile. If the rate nitrogen (N) use by the crop. Urea fertilizers tend to be more prone of nitrification is too high, large to these losses than other forms of quantities of nitrate can build up, nitrogen fertilizer, especially at warmer resulting in luxury uptake by plants, temperatures and/or high levels of which can be damaging and wasteful. moisture. Such quantities can also easily be leached through the soil profile and Why do these losses out of reach of the plants. They are occur? also readily converted by denitrifying bacteria into gaseous nitrogen or Once fertilization has taken place, nitrous oxide, which can also be lost to the urea in the soil is converted into the atmosphere. ammonium through a process called hydrolysis. This is carried out by an Most stabilized ureas are coated with enzyme called urease, which is present a urease inhibitor to delay conversion in many soil-borne bacteria. of urea to ammonium. However, while these products have been shown Ammonium is a readily available to have useful effects in reducing source of nitrogen for plants. However, ammonia emissions in warm climates when temperatures are high, on light like the US, or on very light sandy or (Above) Calum Findlay, Fertilizer Manager, soils or where pH values in the soil alkaline soils, the effect is usually short- Gleadell Agriculture are higher than 7.5, it is possible that (Top) Stabilized urea fertilizer products lived and only lasts one to three weeks. the speed of conversion from urea to are well known in the US, but are now ammonium can exceed the ability of SKW Piesteritz, based near Wittenberg making inroads in parts of Europe, notably Germany and now the UK soil particles to take up ammonium. in eastern Germany, took the process Fertilizer FOCUS | JANUARY/FEBRUARY 2018 5 NITROGEN STABILIZATION feature Alzon neo-N: how it works The product maintains ammonium- applied at any one time without fear to 75%, and prevent ammonia losses based plant nutrition for several of excess losses to the environment, almost completely. weeks. The overall effect encourages potentially reducing the number of root growth, reduces luxury uptake passes required to one for oilseed rape and excess green matter production and one to two for cereals. Climate change and and improves the availability of This year, SKW Piesteritz has legislation phosphorous and trace elements. This taken the principle a step further. Stabilized products have been around better efficiency is most marked