Swiss-based green hydrogen-based fertilizer company, Atlas Agro, is on the cusp of a groundbreaking milestone as it moves towards a final investment decision (FID) for its Pacific Green Fertilizer plant in the US Northwest.
With contracts already signed for a significant portion of its offtake, the company is set to make a substantial impact on the fertilizer industry with its eco-friendly approach. Utilizing green hydrogen and zero-carbon electricity, Atlas Agro aims to produce nitrogen fertilizers through a sustainable process, eliminating the heavy carbon footprint associated with conventional methods.
The production of nitrogen fertilizers on an industrial scale has long relied on hydrogen derived from unabated fossil gas, contributing significantly to greenhouse gas emissions. Atlas Agro, led by its North American President Dan Holmes, plans to break this cycle by utilizing electrolysers powered by zero-carbon electricity to produce green hydrogen. The nitrogen component will be sourced through air separation and processed into ammonia, followed by ammonium nitrate.
By employing this environmentally-friendly method, Atlas Agro is poised to revolutionize the fertilizer industry, offering a sustainable alternative that reduces the emissions footprint associated with nitrogen fertilizers. With nitrogen fertilizers currently accounting for nearly 900 million tonnes of CO2 emissions annually, the potential impact of green hydrogen-based fertilizers cannot be understated.
One of the key advantages of Atlas Agro’s green hydrogen-based fertilizers is their cost competitiveness. The company asserts that its fertilizers will be competitive in cost compared to fossil alternatives when delivered to target markets. This presents a significant economic incentive for farmers and distributors to adopt sustainable agricultural practices while reducing their environmental impact.
The Pacific Green Fertilizer plant, located in Richland, Washington state, is projected to produce approximately 700,000 tonnes of fertilizer annually, encompassing liquid ammonium nitrate solution (ANs), liquid calcium nitrate (CN), and granulated calcium ammonium nitrate fertilizer (CAN). First deliveries from this state-of-the-art facility are expected to commence in 2027.
Beyond cost competitiveness, Atlas Agro anticipates that its green hydrogen-based fertilizers will offer several benefits to farmers, including enhanced crop yields and quality. Additionally, these eco-friendly fertilizers have the potential to reduce the environmental impact of agriculture while opening the door to potential green crop premiums.
To propel its vision forward, Atlas Agro has contracted Spanish company Técnicas Reunidas to conduct front-end engineering and design as well as open-book cost estimation for the Pacific Green Fertilizer plant. Moreover, a recent $325 million investment from Australian bank Macquarie, via its Green Investment Group Energy Transition Solutions fund, has bolstered the company’s financial standing without affecting the timeline for the FID on its US plant.
