Global Food Crisis Looms due to Energy Crunch

The world is facing a looming food crisis due to a reduction in synthetic fertilizer production as a result of rising energy prices.

Farmers apply nitrogen-based fertilizers to boost crop yields. These synthetic based fertilizers require a key ingredient of ammonia which is processed using either hydropower or natural gas. In September, European benchmark prices of natural gas hit an all-time high with the price more than tripling from June to October alone.

The cost of a producing ammonia in the summer of 2020 was $110 per tonne, November 2021has seen the price top $1,000 per tonne. Not only has the price risen nearly 1,000% in under 18 months, some nations such as Russia and China are curbing exports in order to protect their own markets.

According to the UN food agency world food prices hit a 10-year high in October led by increases in cereal crops such as wheat and vegetable oils. As the shortages work their way through different areas of the agricultural sector consumers will see rises in meat and bread prices.

With such dramatic surges in energy prices, fertilizer manufactures have been curtailing ammonia production by as much a 40% which means a reduction in available product. This will create a domino effect; the decrease in fertilizer supply resulting in less used by farmers meaning a lower yield and thus undermining food production, coupled with the higher fertilizer costs which will be passed on to consumers

Higher synthetic fertilizer costs and less availability will result in lower yields with higher prices. Coupled with the ongoing COVID-19 pandemic and climate change including widespread droughts and rains, these are all keys in creating a global food shortage and price rise.

The Circular Economy with fossil-free organic fertilizer

Sprouter Energy is able to address this crisis in reducing the demand for synthetic fertilizers by using organic fertilizers created via anaerobic digestion. Using methane emitting biological waste and converting it into green renewable energy via anaerobic digestion we create digestate, or organic fertilizer, as a by-product.

The digestate by-product is a completely organic fertilizer containing nitrogen, phosphorus, and potassium, all the necessary nutrients and micronutrients essential for farming. The cost is lower that synthetic fertilizers, is readily available and is environmentally friendly, reducing the need for chemical fertilizers and the use of fossil fuels in their production.