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AgWeb Editor Greg Vincent takes a big-picture look at agriculture and current events.

Will Senate Climate Bill Impact Nitrogen Prices?

May 12, 2010

Sens. John Kerry (D-Mass.) and Joseph Lieberman (I-Conn.) unveiled The American Power Act (APA), the Senate's version of the Climate Bill, this afternoon. The Fertilizer Institute doesn't much like it, it appears.

In a statement released to the media this afternoon, TFI President Ford West says the bill includes several provisions to help utilities switch to natural gas for electricity production. With nearly 90% of the production costs for nitrogen fertilizer tied directly to natural gas, and with nitrogen being a major component of phosphates, the group says this could push fertilizer prices through the roof.
 

A portion of the statement reads:

“Despite the bill authors’ stated intent to offset natural gas rate increases for industrial users, its design fails to protect the fertilizer industry from the threat of fuel switching since our natural gas feedstock purchases are not made through a local distribution company,” stated West.  “Congress must keep in mind that fertilizer is a crucial food security resource that is responsible for 40 to 60 percent of the world’s food supply.  Essential industries, such as fertilizer, will be severely challenged by climate policy that does not address our unique sensitivity to the price and availability of natural gas.  It is vital that Congress develop climate change legislation that will preserve the fertilizer industry and many other U.S. manufacturing sectors’ ability to remain viable in a very competitive global market.”

Funny, they didn't include anything from TFI on the APA's What They're Saying page on Senator Kerry's Web site.

 

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COMMENTS (3 Comments)

Anonymous
we're working with outdated energy forms while nuclear engery potential languishes. france is keyed into nuclear energy and is doing well. saftey measures have been updated and with the brilliant scientific minds available, more safeguards can be employed. use current energy forms in moderation and a balanced environment will be realized sooner than later. and for god's sake leave the cows alone...we need there milk...get a grip on reality, 'greeners', or we'll tie a fart sack on all of you.
2:02 PM May 14th
 
ECI
Isn't funny the ones for this will make alot of money from it , Like GE ! LOL
Greg , I can't remeber the Numbers , But Don't we import most of the NH3 already ? I know alot of the NH3 plant's here in the U.S. have shut down . It's just away for the Fert. company's to say we told you so , When there raise there Price's Threw the roof , Like they try'd to do a year ago or so .
7:51 AM May 14th
 
 
 
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