1. Meeting Europe’s
food needs...
OPTIMIZING NATURAL RESOURCES
Paweł Jarczewski
Vice-President, Fertilizers Europe
FERTILIZERS, FOOD AND NATURAL RESOURCES CONFERNCE 19 OCTOBER 2011

2. Gas is the Raw material for
Nitrogen Fertilizer
Fertilizers made from natural gas are
an essential component of sustainable food
Natural gas is distinctive because:
production.
48% of the global population are fed It is a feedstock used to make fertilizers
thanks to the use of mineral fertilizers.
Ultimately gas = food
Without mineral fertilizers human life is Ultimately gas = food security
unsustainable.

3. Fertilizers greatly increase
the positive energy balance of
• When using 170kg N fertilizer on a
hectare of land, wheat yields are ap-
proxiamately 8.2 tonnes compred
with 4.7 tonnes without N fertilizer.
• These 8.2 tonnes equate to 126GJ
of solar energy captured in the form
of biomass when nitrogen is applied
compared with only 71GJ without N
fertilizer.
• The extra 55GJ captured when using
N fertilizers are more than 6 times
the 8GJ used to produce, transport
and spread fertilizers.

4. Typical EU Nitrogen Operation

5. GAS IS CLEAN OPTION
Relative Energy Consumption and CO2-Release: European fertilizer production has lowest
Ammonia Plants with different Feedstocks emissions
300 300
9
Energy consumption / t ammonia
250 250
(relative to natural gas = 100)
(relative to natural gas = 100)
8
CO2 emission / t ammonia
7
t CO2-eqv per t N
200 200
6 Ship transport to WE
5 From urea when used
150 150 Fertilizer production
4 Nitric acid production
3 Ammonia production
100 100
2
1
50 50
0
AN/BAT AN from Urea/BAT Urea from
0 0 Europe Russia Europe China
Coal
Oil
Coal
Oil
Gas
Gas
NOTE:
Urea gives more emission from the soil, which is not shown in this graph

6. Clean Gas =
increased demand in EU =
High gas prices

7. EU industry is world class
efficient gas user
Gas efficiency in ammonia production,
ENCOURAGEMENT OF regional average
VOLUNTARY ENERGY
40
Source: Integer independent consultant
38
EFFICIENCY SCHEMES 36
34
PROMOTING BEST 30
AVAILABLE TECHNOLOGIES
28
26
AND PRACTICES 24
22
20

8. GAS MARKET - EVOLUTION NOT REVOLUTION
GAS MARKET – EVOLUTION NOT REVOLUTION
New 3rd Gas Directive – toward an New EU public and private push on
integrated Single EU Gas Market infrastructure
 Unbundling rules limiting national monopolies from controlling
production/supply and transportation;
 The establishment of new transportation companies with a mission
to supply the maximum amount of gas will – or should – improve
supply – and conditions of supply – to the market;
 Promotion of the regional interconnectivity with the promise of sub-
regional 10 year investment plans tackling infrastructural blocks or
bottlenecks;
 Access to storage, LNG and financial/physical gas trading hubs are
also addressed; congestion management schemes will be
introduced;
 Stronger Independent National Regulators/European Agency: to
champion and control competitive conditions and grid development;
 Competition powers are also to be better focused using Commission
and enhanced national level powers – all in the cause of pro-
competitive gas supply;

9. CONCLUSIONS
• One Single European gas market;
• EU strategy on “energy mix” to account for
added value of natural gas for food security;
• EU Nitrogen fertilizer is the “cleanest” and
most efficient in the world