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The production of fertilizers, particularly nitrogen, phosphorus, and potassium (NPK) fertilizers, contributes a lot to greenhouse gas (GHG) emissions globally. It is estimated that the synthetic nitrogen fertilizer supply chain is responsible for an estimated 2.1% of global GHG emissions.
Traditional methods of producing fertilizers are energy-intensive and rely heavily on fossil fuels; emitting large quantities of CO₂ and other GHGs.
Proba has developed a methodology that helps make a comprehensive evaluation of the impact of sustainable practices in the field of fertilizer production. This blog post explores some important segments of this methodology.
What is the relevance of this methodology and how can it help you?
The methodology applies to GHG Projects that aim to produce NPK fertilizers in a more sustainable way. It includes specific criteria for two types of projects: new production facilities (greenfield projects) and upgrades of existing facilities (retrofits). For example, the use of green hydrogen via electrolysis or adopting energy-efficient production technologies are sustainable processes that can be implemented in the production of NPK fertilizer.
Proba’s Standard and methodologies provide a way to turn sustainability projects into verified impact units, assets which can be traded with your supply chain partners. This not only helps to reduce Scope 3 emissions of your supply chain partners, but also creates new revenue streams for your business.
The emissions
Fertilizer production involves a complex chain of activities that contribute to greenhouse gas emissions. Here's a breakdown of the most important emission sources, when producing fertilizer:
- Fertilizer production processes: core production activities, such as ammonia synthesis and nitric acid production, are major contributors to GHG emissions due to the release of CO₂ and other gases during chemical reactions.
- Energy supply (fossil fuel and electricity): fertilizer plants frequently use natural gas and other fossil fuels to generate the heat and power needed for production. Methane emissions can occur during the extraction, transportation, and utilization of natural gas, adding to the overall GHG footprint.
- Transportation of fertilizers: the movement of fertilizers from production facilities to farms, distributors, or retail centers involves burning fossil fuels in vehicles; contributing to CO₂ emissions. This includes emissions from trucks, trains, ships, and other vehicles of transportation.
- Other Emissions: additional emissions may arise from the extraction of raw materials, waste transportation and treatment, and operational emissions from various activities within the factory. Although these sources may have a lower impact individually, they collectively contribute to the overall emissions profile.
Establishing a baseline is critical for any GHG Project as it provides a reference point to measure emissions reductions. For existing facilities, the baseline scenario is based on historical data, while new facilities (greenfield projects) use market analyses to estimate emissions that would have occurred in the absence of the project.
The methodology emphasizes a conservative approach in calculating both baseline and project emissions, ensuring that GHG reductions are not overestimated and remain credible. It utilizes different tiers of data quality (Tier 1, 2, and 3) to determine emission factors, prioritizing the most accurate and specific data available. More on these data tiers in a next blog.
In rapidly evolving markets, a dynamic baseline may be necessary. This approach allows for recalculations of the baseline emissions to reflect changes in regulatory standards, industry practices, and market conditions. These recalculations will be regularly verified by an independent, accredited auditor (VVB).
What’s next
We hope that this methodology will become an industry standard for evaluating sustainable practices in NPK fertilizer production. More information is available on the methodology page. Please reach out to us with any questions or feedback.
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