The summer of 2013 has given the lowest Urea prices in many years. The industry and markets believe we are at rock bottom now with Black Sea reference price around 300 USD per ton. The old timers of the same industry will know that this is actually the historical average in this cyclic industry. However, if this is the rock bottom and prices will rebound, it confirms a paradigm shift. Fertilizer prices – based on and dominated by fossil fuels – will increase relative to the historical trend.
How is Fusion Farming able to compete against the low Urea price and high electrical power prices?
300 USD per ton at Black Sea means 350 USD at US Gulf and 450-500 USD as retail price at Mid West. So the farmer pays about 1.000 USD/tN since the Urea contains 46% nitrogen.
Our technology will deliver Nitrate nitrogen consuming 10 MWh per ton of nitrogen. Each ton of Nitrate nitrogen produced at the farm will further capture and conserve one ton of Ammonium nitrogen from the manure.
As a net result Fusion Farming use 10 MWh to provide 2 ton of nitrogen on the farm. The alternative for the farmer is to buy 4 ton of Urea which will give 2 ton of nitrogen.
For an industrial farmer with an energy price of 66 USD/MWh (today’s industrial US market price) the Fusion Farming energy cost will be 660 USD. The alternative price for the 4 tons of Urea will be 2000 USD.
With an energy cost of 66 USD/MWh the break-even energy efficiency for Fusion farming technology is 105 GJ/tN – corresponding to 30 MWh/tN. The target and documented potential of N2 Applied’s Fusion Farming technology is more ambitious – 36 GJ/tN – equal to 10 MWh/tN.
We will get there.