Agricultural Market

Ammonia in
    agriculture

AmmONia Market - Agricultural fertilizer

Ammonia, NH3, is a nitrogen fertilizer that is stable, readily available for plant uptake, and does not release carbon dioxide gas.

  • Approximately 50% of the world’s food supply relies on ammonia-based fertilizer. 
  • Ammonia-treated crops, such as corn and wheat, can experience greater yields.
  • About 80% of the world's ammonia is produced for agricultural fertilizers (over 200 million metric tons per year)
Render showing IAMM unit on farm with a tractor distributing fertilizer.
Diagram depicting how different fertilizer types work when injected into soil and turn into a form of nitrogen ready for uptake by plants.

Fertilizer Supply Chain

Fertilizer supply chain diagram - showing how traditional methods emit CO2 in nearly every step

Although ammonia itself does not contain carbon, ammonia is traditionally manufactured from hydrogen carriers that do contain carbon, creating millions of tons of carbon dioxide emissions each year. From every step of the distribution process before the ammonia reaches the farm to be used as fertilizer, carbon dioxide is emitted to the atmosphere.

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Issues with the Traditional Fertilizer Supply Chain

  • The transport of ammonia across state lines to reach the corn belt creates logistical supply-chain issues and an undocumented amount of carbon dioxide emissions.
  • The use of natural gas in the production process means that the market price of ammonia is dependent on natural gas prices.
Fertilizer prices of anhydrous ammonia, urea, and 28% solution from November 2012 through July 2021

AMMPOWER SOLUTION

Shortening the fertilizer Supply Chain, 2 ways

  1. Small-scale, local ammonia production

AmmPower's first ammonia fertilizer supply chain diagram, where the IAMM unit is located at the distributor and the only CO2 emissions are from local transportation to the farm.

   2. Small-scale, on-site ammonia production

AmmPower's second ammonia fertilizer supply chain diagram, where the IAMM unit is located on-site at the end user, showing that zero CO2 emissions are generated.

AmmPower is developing small-scale, containerized ammonia production units. This enables both farmers and agricultural retailers to:

  • Economically produce ammonia fertilizer, on-site
  • Become independent from volatile market prices
  • Avoid seasonal fertilizer availability and transportation issues
  • Reduce or eliminate upstream CO2 emissions
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Targets

Carbon-Free Ammonia
Decarbonize/electrify traditionally “hard-to-abate” sectors with green ammonia synthesis technology and utilize carbon credit incentives to further bring down costs.
Decentrilize Ammonia Production
Shorten the supply chain to bring ammonia production on-site or closer to the end user, reducing logistical issues and creating independence from the market price of ammonia.
Economic Feasibility
Make smaller scale ammonia production units located closer to the end user to be economically viable and provide a reasonable return on investment.
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