Ammonia demand could make food versus fuel debate inevitable

This content is part of the WPC 2025 series, where we explore key themes from the 40th annual World Petrochemical Conference.

Future demand growth for sustainable ammonia could make the food versus fuel debate "inevitable," said Mark Eramo, Co-President of S&P Global Commodity Insights, at the World Petrochemical Conference March 18.

While most often used as a fertilizer to increase the nitrogen content of soil, the potential development for ammonia as a carrier of clean energy could make it essential as a low-carbon transportation fuel.

It will be of pivotal importance for petrochemical manufacturers to invest to meet growing demand while "balancing the need for low-carbon materials," said Eramo.

Ammonia can increase crop yields by 20%-50%, according to S&P Global Commodity Insights data, meaning that 40% of the global population could be at risk without ammonia fertilizer.

With the global population expected to reach approximately 9.7 billion by 2050, according to data from the World Bank, ammonia consumption will be critical to keeping the growing global population fed.

However, ammonia could also play a crucial role to support the energy transition as a sustainable marine or road transportation fuel.

Platts assessed ammonia CFR US Gulf Coast at $460/mt on March 17, stable on the day.

Platts is part of S&P Global Commodity Insights.