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DLG Group / Press / News
11. October 2022

Cooperatives will transform power from wind turbines into greener fertilizer

The four large, farmer-owned cooperatives DLG, Danish Agro, Arla and Danish Crown are now joining forces and have founded a new company. It will investigate the possibilities for establishing a Danish production of commercial fertilizer that is made on green ammonia and is thus more sustainable than conventional fertilizer produced on fossil fuels.

Danish agriculture is amid a historic change, where there is broad agreement that the profession must be climate neutral by 2050. To achieve that goal, new methods and products must be used that can lower the emission of greenhouse gases by the individual farmer.

Now the four large cooperatives DLG, Danish Agro, Arla and Danish Crown have joined forces with precisely that goal in mind. With a double-digit million investment, the co-operatives have founded the company Green Fertilizer Denmark, which will investigate whether the production of more sustainable fertilizer can be established on Danish soil.

"It is the entire value chain from farm to table that has come together for this project. With the newly founded company, we are sending a clear signal that across the cooperatives we will put action behind the ambitions to be climate neutral by 2050. A more sustainable fertilizer solution is an important step on our way towards the common goal, and we assess the potential as being enormous," says Bent Nissen, Executive Vice President in DLG and chairman of the board of Green Fertilizer Denmark.

Today, fertilizer is a prerequisite for meeting he global demand for food, and it is therefore widespread in the cultivation of plants for both humans and animals. This is done to ensure optimal growth conditions for the plant, and thus the best possible yields in relation to the area.

However, the use of commercial fertilizers accounts for a significant part of the CO2 emissions from plant production, as in many places it is produced by energy from natural gas. With fertilizer based on green ammonia from wind turbine power, emissions from commercial fertilizers in Denmark can be reduced by approx. 750,000 tons of CO2*. This corresponds to the discharge from approx. 250,000 diesel cars**

Wind turbine power is the most important ingredient

In 2021, Copenhagen Infrastructure Partners' Energy Transition Fund announced an ambition to build Europe's largest Power-to-X facility, HØST PtX Esbjerg, which will produce green ammonia based on wind turbine power from the North Sea. The ammonia will become a central factor in the possible establishment of a production of more sustainable fertilizer on Danish soil.

In addition to fertilizer for agriculture, the ammonia can also be used as fuel for shipping, and the excess heat from production can also be used to heat households.

"We are pleased that four such strong players, owned by Danish farmers, are now taking the first joint step towards a more sustainable fertilizer production. Denmark is a leading country in wind energy, and with our strong wind resources we can also become one in Power-to-X, which is necessary to deliver on the major climate ambitions that both Denmark and the EU have adopted," says Karsten Plauborg, partner in Copenhagen Infrastructure Partners.

The high beam is on

During the next 9-12 months, the newly established company will carry out a series of feasibility studies, which will form the basis for decision-making for a possible investment in the production of more sustainable fertilizer. It includes i.a. studies of possible locations, various environmental studies, and planning. If the feasibility studies show that there is the necessary basis for establishing a fertilizer factory on Danish land, it will be ready in 2028 at the earliest.

"It's a project that has a long way to go. It is therefore important that we start the project now, so that in addition to the initial investigations, we can also start the dialogue with business partners, investors, possible suppliers and relevant authorities," says Bent Nissen.

If the fertilizer factory becomes a reality, it will produce quantities that can cover the Danish consumption - and more. It can therefore both ensure a stable supply of fertilizer for Danish agriculture and become an export product, thus turning what is today an import product into an export adventure.

*Based on data from Fertilizers Europe and SEGES Innovation.
**The calculations are based on diesel cars that has a fuel consumption of 15.4 km/l, emits 171.7 grams of CO2 per kilometer and travels 17,000 kilometers yearly.