Fertiliser Industry Faces Hurdles to Decarbonisation
Representatives cite economic and technical barriers to shifting away from fossil fuel feedstocks for ammonia production.
Updated on Oct. 20, 2026 in Energy
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At a recent conference in Brussels, industry leaders highlighted the challenges of replacing fossil fuel-derived hydrogen in the Haber-Bosch process. High energy requirements for current production methods complicate compliance with upcoming EU emissions targets.
Why it matters
The sector relies on steam reforming for production, an emissions-intensive method that is currently difficult to scale with renewable alternatives. Market factors are failing to incentivize the capital investments necessary for the required green hydrogen transition.
The Haber-Bosch process operates at pressures between 150 and 300 bar, while steam reforming requires temperatures ranging from 700 to 1,000 °C. Renewable hydrogen currently accounts for less than 1% of Grupo Fertiberia's EU requirements.
The players
European Commission
This is the executive branch of the European Union responsible for proposing legislation and implementing decisions.
Grupo Fertiberia
This company is a major European producer of fertilisers and agricultural solutions.
The details
Industry experts noted that while the sector has cut greenhouse gas emissions by 50% since 2005 and N2O emissions by 95% over the last decade, transitioning to renewable hydrogen remains a hurdle. Fossil fuels currently serve as both the primary feedstock and energy source for ammonia synthesis.
Timeline
The fertiliser industry began tracking emissions reductions in 2005.
The European Commission presented an ETS revision proposal on July 17, 2026.
Grupo Fertiberia's renewable hydrogen share is projected to remain below 1% in 2027.
The EU mandates 42% of industrial hydrogen to be renewable by 2030.
The phase-out of free ETS allocation is scheduled for 2038.
The Big Picture
The industry's struggle to meet hydrogen transition targets follows the trajectory set by the EU Renewable Energy Directive. This shift represents a move away from legacy fossil fuel-based feedstocks toward mandated renewable energy usage.
Future shifts to renewable hydrogen production could lead to more sustainable agricultural inputs and reduced carbon footprints for food supply chains. However, current market hurdles suggest that transitioning energy-intensive industrial processes will require significant long-term capital reallocation.
The takeaway
The transition to green ammonia requires bridging the significant gap between current renewable hydrogen usage and future EU regulatory mandates. Industry success will depend on whether member states fulfill the proposed 50% revenue reinvestment for decarbonisation projects.
Further reading
For more background on the sector's climate goals, visit the World Energy section.
Source note: This article includes information reported by Euractiv DE.
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