Yara is working to improve the sustainability of food production. Actions range from increasing carbon stored in soils to decarbonizing fertilizer and food chain integration. Here are three of the initiatives.
Targeting carbon- and sustainability-focused business lines, Yara has launched a pilot project to create a sustainability income for farmers by paying them to store carbon in their soil and avoid emissions in their fields. Through the Agoro Carbon Alliance, we will incentivize farmers to adopt carbon-smart practices. In addition to paying farmers for implementing sustainable practices and storing carbon, this credit scheme will offer companies looking to offset some of their harder-to-reduce or -avoid emissions, an avenue to reach their climate commitments while supporting farmers and sustainable food production. Although it’s early days, the potential is massive. Analyses show up to one gigatonne of CO2 storage potential and a possible USD 10 billion market potential. Starting with the US pilot, Yara is now positioning itself to take a leading role in this fast-growing market and expects to generate the first millions of carbon credits over the next 2-3 years.
Hydrogen is strongly positioned as a key solution for decarbonizing the energy systems of the future. But hydrogen is challenging to store and transport. This is where ammonia comes in as the easiest way of transporting and storing hydrogen. Yara has established a new global unit – Yara Clean Ammonia – to capture growth opportunities within carbon-free food solutions, shipping fuel and other clean ammonia applications. Yara Clean Ammonia took its first major step forward by partnering with Statkraft and Aker Horizons to establish Europe’s first large-scale green ammonia project in Norway. The partners plan to electrify and decarbonize Yara’s ammonia plant in Porsgrunn. 2020 also heralded the announcement of a green ammonia pilot collaboration with Ørsted, located in Yara’s Sluiskil, Netherland site. This brings Yara’s green ammonia portfolio to three pilot projects and one full-scale project.
Agriculture is becoming increasingly integrated into the food value chain. Input providers are joining forces, farms are growing in scale and professionalism, the food industry is moving upstream, and conscious consumers are putting pressure on the food and agriculture industry to achieve new levels of sustainability. A case in point is Yara’s pilot project in Colombia with global food company Nestlé. By collaborating from soil to supermarket, sustainability in dairy production is improved, farmer profitability increased, and consumer demands for sustainable dairy products met. After 9 months of improved crop nutrition and farm management practices, the trial farms reduced the CO2 emissions per liter milk by 21%, while milk production increased.