Hydrogen-derived ammonia plays a critical role in global fertilizer production, directly supporting food security by enabling large-scale agriculture. The process begins with hydrogen feedstock, which is predominantly sourced from natural gas via steam methane reforming, accounting for the majority of ammonia synthesis today. However, electrolysis-based hydrogen, particularly from renewable energy, is gaining traction as part of the green ammonia transition. The synthesis of ammonia via the Haber-Bosch process combines hydrogen with nitrogen extracted from the air, forming anhydrous ammonia, which serves as the foundational chemical for nitrogen-based fertilizers such as urea and ammonium nitrate.
The supply chain for ammonia-based fertilizers is complex and highly interdependent. Hydrogen production facilities are often located near natural gas reserves or low-cost renewable energy hubs, while ammonia synthesis plants are strategically positioned near ports or agricultural regions to minimize transportation costs. After synthesis, ammonia is either used directly as a fertilizer or further processed into urea, ammonium nitrate, or other derivatives. Urea production involves reacting ammonia with carbon dioxide, while ammonium nitrate results from neutralizing ammonia with nitric acid. These fertilizers are then distributed globally via bulk shipping, rail, or truck transport to farming regions.
Regional dependencies shape the dynamics of ammonia and fertilizer trade. Major natural gas producers such as Russia, the United States, and the Middle East dominate conventional ammonia production due to access to cheap feedstock. Countries with limited domestic gas reserves, such as India and parts of Europe, rely heavily on ammonia imports to meet agricultural demand. China, the largest fertilizer consumer, balances domestic production with imports, while Africa remains a net importer due to underdeveloped production infrastructure. Geopolitical factors, such as trade restrictions, sanctions, or conflicts in key gas-producing regions, can disrupt supply chains, leading to price volatility and shortages. The 2022 natural gas crisis in Europe, for example, forced several ammonia plants to reduce output, tightening global fertilizer supplies.
The shift toward green ammonia introduces both opportunities and challenges for food security. Green ammonia, produced using renewable hydrogen, significantly reduces carbon emissions compared to conventional methods. Pilot projects in Australia, the Middle East, and Europe are scaling up electrolyzer-based ammonia production, leveraging abundant solar and wind resources. However, current costs remain higher than fossil-based ammonia, limiting widespread adoption without subsidies or carbon pricing mechanisms. Regions with cheap renewable energy potential, such as North Africa and Chile, could emerge as key exporters of green ammonia, reshaping traditional trade flows.
The transition also raises questions about infrastructure readiness. Existing ammonia plants require retrofitting or replacement to accommodate green hydrogen feedstock, and new transportation and storage solutions may be needed to handle increased production in remote renewable energy hubs. Additionally, farmers in developing economies may face higher fertilizer costs during the transition period unless financial mechanisms are implemented to bridge the price gap.
Despite these challenges, the long-term benefits of green ammonia for food security are substantial. Decarbonizing fertilizer production reduces agriculture’s carbon footprint, aligning with global climate goals. Stable renewable-based supply chains could also mitigate geopolitical risks associated with fossil fuel dependencies. However, achieving this transition at scale demands coordinated investment, policy support, and international cooperation to ensure fertilizer affordability and accessibility for food-producing regions worldwide.
The future of ammonia-based fertilizers hinges on balancing sustainability with economic viability. As green ammonia technologies mature, their integration into global agriculture will be pivotal in maintaining food security while addressing environmental imperatives. The interplay between energy markets, geopolitical stability, and technological innovation will ultimately determine the pace and success of this transition.