The devastating explosion at a fertilizer-blending facility in West, Texas, on April 17 called attention to the risks of ammonia-based fertilizer production and storage. Between 1984 and 2006, the U.S. Occupational Safety and Health Administration reported 224 accidents, resulting in 50 fatalities, at ammonia plants around the U.S., and ammonia-based fertilizers and explosives were involved in a variety of intentional attacks, including the 1995 Oklahoma City bombing. Now, a different kind of boom in the fertilizer business—no explosives required—could also spell trouble.
No ammonia plants—which produce 90 percent of the fertilizer used worldwide—have broken ground in the U.S. in more than 20 years. But in the next three to five years, that’s changing. Today there are as many as 14 ammonia plants proposed in the U.S., with nearly 12 million tons of new capacity and $10 billion of expected investment. Several older plants are also being recommissioned and upgraded. Louisiana, Iowa, North Dakota, Texas and Indiana are among the proposed sites. This boom, driven by low prices for natural gas—the main ingredient in ammonia production—will drive a corresponding surge in the industry’s already substantial carbon footprint.
No ammonia plants—which produce 90 percent of the fertilizer used worldwide—have broken ground in the U.S. in more than 20 years. But in the next three to five years, that’s changing. Today there are as many as 14 ammonia plants proposed in the U.S., with nearly 12 million tons of new capacity and $10 billion of expected investment. Several older plants are also being recommissioned and upgraded. Louisiana, Iowa, North Dakota, Texas and Indiana are among the proposed sites. This boom, driven by low prices for natural gas—the main ingredient in ammonia production—will drive a corresponding surge in the industry’s already substantial carbon footprint.