Fertilizer Tech Addresses Strait of Hormuz Food Supply Risk

The ongoing crisis in the Strait of Hormuz, a critical chokepoint for global trade, is highlighting a significant, often overlooked, food security risk: the disruption of fertilizer supplies. Approximately one-third of the world's fertilizer passes through this corridor, originating from production hubs in countries like Qatar. The conflict has already driven up fertilizer prices, contributing to global food inflation.

Traditional fertilizer production relies on the Haber-Bosch process, a century-old method that uses natural gas as a primary input. This process is a major source of greenhouse gas emissions and creates a vulnerability for nations lacking substantial natural gas reserves. Both the war in Iran and the conflict in Ukraine have impacted the availability of natural gas and, consequently, fertilizer.

A new wave of startups is developing innovative fertilizer production methods that bypass natural gas dependency and reduce supply chain risks. One promising approach involves recovering fertilizer components from wastewater. Companies like Ostara are capturing nitrogen and phosphorus from wastewater treatment plants in the U.S. to create fertilizer. In Finland, NPHarvest is employing membranes and chemistry to achieve similar results with lower energy consumption, avoiding the high heat and pressure typical of conventional methods.

For wastewater treatment facilities, particularly those needing to comply with stringent European disposal regulations, these new technologies offer a more cost-effective solution for water treatment, with fertilizer production as a valuable byproduct. NPHarvest's co-founder, Burak Yirmibesoglu, stated that their approach helps these facilities save money. The company is currently in pilot testing with its initial customers and anticipates selling its recovered fertilizer at a lower cost than conventional options.

Another startup, Recovered Potential, which originated from Stanford University, is utilizing electricity to selectively extract ammonia from wastewater. This targeted recovery method aims to address the challenges of ammonia capture and contribute to a more sustainable and secure fertilizer supply chain.