Ammonia and urea dominate GCC agri-nutrient market; account for 75% of region’s total market share: GPCA

Ammonia and urea dominate the GCC agri-nutrient market, accounting for 75% of the region’s total market share, the Gulf Petrochemicals and Chemicals Association (GPCA) said in a report.In 2021, GCC agri-nutrient production amounted to 34.3mn tonnes, constituting 17.2% of total global production, GPCA noted.Agri-nutrients (fertilisers) represent a substantial part of the GCC chemical industry, and play a crucial role in the GCC’s road to sustainability and food security, according to GPCA.However, with an increased push towards sustainability and carbon neutrality, Carbon Capture, Utilisation and Storage (CCUS) is in the spotlight as a potential solution to significantly reduce emissions in various industries, including agri-nutrients.Amidst a global effort to achieve carbon neutrality by mid-21st century, CCUS is gaining global attention as the basis technology for reducing GHG emissions and decarbonising industrial processes.In its most simplified terms, in CCUS, the CO2 emitted during operations is captured and either re-utilised for other CO2 requiring processes, or stored.In an agri-nutrient specific example, the carbon captured from ammonia production could be re-used in subsequent urea production.According to the International Energy Agency (IEA) (2021), the cost of CCUS-equipped agri-nutrient production is approximately 20%-40% higher than that of its unabated alternatives.However, because costs differ per region, a GCC specific analysis is required to assist regional producers and decision-makers.A GPCA research paper has presented a cost-comparative analysis of current and future carbon capture in the GCC to determine whether agri-nutrient producers would economically benefit from incorporating CCUS mechanisms into production, or whether buying CO2 from existing capture sites is more cost-effective.Agri-nutrient production is not a heavily emitting industry, it said. In fact, globally, agri-nutrient production only accounts for less than 2% of total emissions, according to leading research institution.