Fertilizer

When you’re in competition for billions in federal dollars, you need more than just a sensible approach and a strong economic case. You need a real competitive advantage. That’s what Hy Stor Energy believes it has with its proposed Mississippi Clean Hydrogen Hub (MCHH). It sees off-the-grid renewable power and extensive salt-dome storage capabilities as the surest path to decarbonization for a myriad of industrial needs. In today’s RBN blog, we look at the overall strategy behind the MCHH, the plan to produce 100% green hydrogen, and how Hy Stor hopes to beat the competition and secure Department of Energy (DOE) funding for a regional hydrogen hub.

US nitrogen based fertilizer prices are currently at record levels as a result of high demand from farmers. Farm demand for fertilizers is driven by crop prices. The Midwest drought this year has pushed corn prices through the roof, creating strong demand for fertilizer to improve crop yields. Nitrogen fertilizers are derived from ammonia – largely produced using natural gas. The current cost to produce ammonia from natural gas is about $98/ton. With farmers in Iowa paying over $800/ton for fertilizer this month producer margins are extremely attractive. One company is pushing a new “mobile” technology to make fertilizer from surplus natural gas in the Bakken.  Today we look at fertilizer market fundamentals.