Presentation of Pawel Jarczewski, Vice-President of Board Fertilizers Europe at Food, Fertilizers and Natural Resources Conference by Fertilizers Europe
Meeting Europe’s food needs... OPTIMIZING NATURAL RESOURCES Paweł Jarczewski Vice-President, Fertilizers Europe FERTILIZERS, FOOD AND NATURAL RESOURCES CONFERNCE 19 OCTOBER 2011
Gas is the Raw material forNitrogen FertilizerFertilizers made from natural gas arean essential component of sustainable food Natural gas is distinctive because:production.48% of the global population are fed It is a feedstock used to make fertilizersthanks to the use of mineral fertilizers. Ultimately gas = foodWithout mineral fertilizers human life is Ultimately gas = food securityunsustainable.
Fertilizers greatly increasethe positive energy balance of• When using 170kg N fertilizer on a hectare of land, wheat yields are ap- proxiamately 8.2 tonnes compred with 4.7 tonnes without N fertilizer.• These 8.2 tonnes equate to 126GJ of solar energy captured in the form of biomass when nitrogen is applied compared with only 71GJ without N fertilizer.• The extra 55GJ captured when using N fertilizers are more than 6 times the 8GJ used to produce, transport and spread fertilizers.
GAS IS CLEAN OPTION Relative Energy Consumption and CO2-Release: European fertilizer production has lowest Ammonia Plants with different Feedstocks emissions 300 300 9Energy consumption / t ammonia 250 250 (relative to natural gas = 100) (relative to natural gas = 100) 8 CO2 emission / t ammonia 7 t CO2-eqv per t N 200 200 6 Ship transport to WE 5 From urea when used 150 150 Fertilizer production 4 Nitric acid production 3 Ammonia production 100 100 2 1 50 50 0 AN/BAT AN from Urea/BAT Urea from 0 0 Europe Russia Europe China Coal Oil Coal Oil Gas Gas NOTE: Urea gives more emission from the soil, which is not shown in this graph
Clean Gas = increased demand in EU = High gas prices
EU industry is world classefficient gas user Gas efficiency in ammonia production, ENCOURAGEMENT OF regional average VOLUNTARY ENERGY 40 Source: Integer independent consultant 38 EFFICIENCY SCHEMES 36 34 PROMOTING BEST 30 AVAILABLE TECHNOLOGIES 28 26 AND PRACTICES 24 22 20
GAS MARKET - EVOLUTION NOT REVOLUTION GAS MARKET – EVOLUTION NOT REVOLUTION New 3rd Gas Directive – toward an New EU public and private push on integrated Single EU Gas Market infrastructure Unbundling rules limiting national monopolies from controlling production/supply and transportation; The establishment of new transportation companies with a mission to supply the maximum amount of gas will – or should – improve supply – and conditions of supply – to the market; Promotion of the regional interconnectivity with the promise of sub- regional 10 year investment plans tackling infrastructural blocks or bottlenecks; Access to storage, LNG and financial/physical gas trading hubs are also addressed; congestion management schemes will be introduced; Stronger Independent National Regulators/European Agency: to champion and control competitive conditions and grid development; Competition powers are also to be better focused using Commission and enhanced national level powers – all in the cause of pro- competitive gas supply;
CONCLUSIONS• One Single European gas market;• EU strategy on “energy mix” to account for added value of natural gas for food security;• EU Nitrogen fertilizer is the “cleanest” and most efficient in the world