- Ammonia is currently the second most produced chemical
- Its production, which accounts for 2% of the world’s fossil fuel use, currently generates over 420 million tons of CO2 annually
- With the growing global population, the demand for nitrogen for fertilizer is increasing, and with it comes an increase in CO2 production
- Ammonia supply out of the Black Sea region has dropped, with natural gas, the primary feedstock for ammonia production, expected to reach a long-time high of US$1,000/mt
- FuelPositive seeks to capitalize on the growing need for access to fertilizer and a dwindling ammonia supply chain with its on-site green ammonia production systems
According to the United Nations, the world population is projected to reach 9.8 billion in 2050, and 11.2 billion in 2100 (https://ibn.fm/yXNLi). This population growth will put a strain on global food supplies and productivity – but it will also significantly increase the global demand for nitrogen for fertilizer. While the farming sector has benefitted from innovations such as genetically-modified crops and AI-driven agriculture to boost crop yields, the primary need for most of the world is simply greater access to fertilizer as opposed to these other innovations.
FuelPositive (TSX.V: NHHH) (OTCQB: NHHHF) has pioneered a clean energy solution in the form of green ammonia for various applications, including fertilizer for the agriculture sector. Ammonia’s chemical name is NH3. In the agriculture sector, it is primarily the “N” or nitrogen that plays a key role because it is necessary for the healthy growth of crops. But the “H”, which stands for hydrogen, is equally important. With its proprietary system, FuelPositive can store hydrogen in its green ammonia, allowing it to be efficiently used for energy storage and as fuel for internal combustion engine vehicles. When used properly, as fertilizer or as a fossil fuel replacement, the only discernable emissions from its carbon-free green ammonia is water vapor, or, in the case of fertilizer, some hydrogen emissions which are completely inert. (Nitrous oxide which is created when ammonia is burned, can be eliminated with proper combustion or by using catalytic convertors in internal combustion engines.)
Most importantly, the use of FuelPositive’s green ammonia in agriculture will result in a significant reduction in CO2 emissions, a critical benefit, considering how food production contributes to global warming worldwide.
Ammonia currently ranks as the second most produced chemical globally, with production accounting for 2% of the world’s fossil fuel use. The industry, as a whole, generates over 420 million tons of CO2 annually, creating a challenging tension between producing much-needed fertilizer to meet our needs for food and reducing carbon emissions (https://ibn.fm/T6chL).
FuelPositive’s green ammonia technology provides an innovative solution to growing environmental concerns. It also addresses another important challenge: centralization of ammonia production.
For most companies in this sector, operating at scale in massive centralized production facilities increases ammonia output, reducing the gap between supply and demand. However, this centralization results in a precarious supply chain buffeted by fossil fuel shortages, damage to facilities because of extreme weather and even labor shortages. The resulting drop in production and rise in prices causes food shortages, as well as economic hardship for farmers around the world.
The Director of New Business Equipment at Mitsubishi Heavy Industries Compressor International Corporation (MCO-I), Clayton Jurica, has reckoned that the solution lies not in choosing larger or smaller plants. Instead, he notes, “There are pockets of demand around the world where transportation or logistics is complicated, so building small to mid-sized ammonia production plants to meet local demand makes economic sense.”
FuelPositive’s green ammonia effectively addresses problems associated with scaling and transportation. It requires less energy to produce and is manufactured using a modular, scalable, transportable production system – a “plant in a box” – that is situated where the green ammonia is required. There is no need for massive refineries or a complicated supply chain. The end user simply produces the amount of green ammonia needed using air, water and sustainable electricity. In the case of farms, the farmer would have a FuelPositive production system on the farm, producing fertilizer for their crops, fuel for their farm systems and machinery, and to be used as on-the-farm grid storage for use when other sources of renewable electricity are unavailable.
With the recent drop in ammonia supplies out of the Black Sea, FuelPositive’s green ammonia is even more appealing. As of the end of October 2021, delivery from Black Sea refineries into Europe was challenging, given how low gas supplies have become. Some of the trade sources are reportedly out of supply until mid-November, a factor that is driving up the price, which is expected to hit US$1,000 per metric tonne (“MT”) (https://ibn.fm/ksIiL). As it stands, natural gas and coal are the primary feedstocks for ammonia production. However, low pump rates in Russia have made the product even more scarce in the Black Sea, a factor that is further pushing up its price and inhibiting ammonia production in Europe. However, with FuelPositive’s green ammonia, reliance on large amounts of natural gas or coal in ammonia production is not a factor, allowing for a greener yet more reliable method of ammonia production.
FuelPositive is looking to capitalize on this dwindling supply of ammonia to push its green alternative, making ammonia more accessible to farmers and contributing to a greener planet, while greatly growing its market share.
For more information, visit the company’s website at www.FuelPositive.com.
NOTE TO INVESTORS: The latest news and updates relating to NHHHF are available in the company’s newsroom at https://ibn.fm/NHHHF
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