Search
From green ammonia to lower-carbon foods

December 11, 2023 | McKinsey & Company

Agriculture, contributing to 24% of global greenhouse gas emissions, faces a challenge in decarbonization due to limited emission reduction technologies. However, a breakthrough lever has emerged—replacing fossil-fuel-based ammonia with green ammonia in fertilizer production. Gray ammonia, responsible for 1.2% of global emissions, can be almost fully decarbonized through green ammonia, contributing significantly to greenhouse gas reduction.

A McKinsey analysis reveals that transitioning to green ammonia could cut emissions by an average of 5% in ten typical European consumer food products. Fertilizer producers are already exploring greener alternatives, with projects worldwide aiming for substantial emissions reductions. Green ammonia's impact extends beyond emissions reduction; it aligns with consumer demand for sustainable products, offering a competitive advantage.

Despite these benefits, challenges remain. Green ammonia projects require increased access to green financing and significant renewable power capacity expansion. Uncertainty in future green ammonia prices necessitates collaboration to absorb higher costs throughout the value chain. Consumer willingness to pay premiums for sustainability presents an opportunity to finance green ammonia projects, signaling a path toward a more sustainable agriculture sector.

Viewed Articles
From green ammonia to lower-carbon foods
December 11, 2023 | McKinsey & Company | Agriculture, contributing to 24% of global greenhouse gas emissions, faces a challenge in decarbonization due to limited emission reduction technologies. Howev
Read More
Bayer, GenZero, Shell, and Mitsubishi collaborate to empower rice farmers in India through TGRA
October 21, 2024 | Agro Spectrum India | The Good Rice Alliance (TGRA), a collaborative effort by Bayer, GenZero, Shell, and Mitsubishi, is transforming rice cultivation in India through climate-smart
Thailand switching to low-carbon rice to meet net-zero goal
January 6, 2025 | The Nation |  Thailand’s Agriculture and Cooperatives Ministry is promoting low-carbon rice cultivation to reduce greenhouse gas (GHG) emissions, advance its climate goals, and enhan
USDA Invests $1.5 Billion in 92 Partnership Projects to Advance Conservation and Climate-Smart Agriculture
October 23, 2024 | U.S. Department of Agriculture (USDA) | The U.S. Department of Agriculture (USDA) has announced a historic $1.5 billion investment in 92 conservation projects through the Regional C
Taiwan hosts ACSAC11, showcasing leadership in net-zero agriculture and food security
May 26, 2025 | CTEE (In Chinese) |  The 2025 Asian Crop Science Association Conference 11 (2025 ACSAC11), held in Taiwan after 26 years, gathered over 400 experts from 21 countries to address climate
Kaohsiung's first Renewable Energy Certificate (REC) awarded to a pig farm: turning manure into green gold
March 3, 2025 | UDN (In Chinese) |  Zhixian Pig Farm (志賢畜牧場) in Kaohsiung has become Taiwan’s first privately owned pig farm to receive Renewable Energy Certificates (RECs) for biogas power generation
TOP