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Energy & Climate

Our Position

TFI supports climate policies that preserve the competitiveness of U.S. fertilizer manufacturers in the world market.
 

Analysis

Natural gas plays a critical role in the production of fertilizers. It is the basic building block for nitrogen fertilizers—used to produce the primary ingredient of ammonia.

Fortunately for the industry, domestic ammonia manufacturing is experiencing a resurgence, driven primarily by plentiful supplies of low cost natural gas provided by shale. Seven new energy efficient ammonia plants are slated to open in the United States sometime between 2016 and 2018.

How efficient? The modern method of producing nitrogen (the Haber-Bosch process) is fast approaching the limit of minimum energy consumption or the scientific end point of energy efficiency. Also, the greenhouse gas emissions from ammonia production are recycled by the fertilizer industry in urea production, beverages production and for use in enhanced oil recovery.

Furthermore, process gas emissions should be exempted from any future greenhouse gas reduction framework. The irreducible nature of emissions from the fertilizer manufacturing process must be considered in any climate change policy.

As energy consumers and producers of products that are essential to the nation’s food production system, TFI believes an “all of the above” strategy would go far to help create a level playing field for all sources of energy and further encourage more efficiencies.