{"id":59502,"date":"2021-09-25T15:36:22","date_gmt":"2021-09-25T20:36:22","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59502"},"modified":"2021-09-25T15:36:22","modified_gmt":"2021-09-25T20:36:22","slug":"uks-fertilizer-crisis-spreads-to-eu-after-another-firm-slashes-output","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59502","title":{"rendered":"UK&#8217;s Fertilizer Crisis Spreads To EU After Another Firm Slashes Output"},"content":{"rendered":"<header class=\"ArticleFull_header__11o5_\">\n<h3 class=\"ArticleFull_title__2cUI6\"><a href=\"https:\/\/www.zerohedge.com\/commodities\/uks-fertilizer-crisis-spreads-eu-after-another-firm-slashes-output\">UK&#8217;s Fertilizer Crisis Spreads To EU After Another Firm Slashes Output<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__38L44\">\n<div class=\"NodeContent_body__2clki NodeBody_container__1M6aJ\">\n<p>Europe&#8217;s energy crisis has claimed another victim, with Austrian fertilizer producer Borealis AG slashing the output of ammonia after the cost of the primary feedstock, natural gas, compresses margins in an industry already facing tight supplies, according to\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-09-23\/europe-s-fertilizer-crisis-spreads-as-another-firm-cuts-output?sref=RJ2RlMrh\">Bloomberg<\/a>.<\/p>\n<p>Borealis&#8217; ammonia-producing plant uses natural gas to make\u00a0fertilizer. The high cost of natgas makes\u00a0fertilizer\u00a0uneconomical to make. This is yet\u00a0another sign of deepening woes for the industry after the UK government said it would provide &#8220;limited financial support&#8221; to help CF Industries\u00a0<a href=\"https:\/\/www.zerohedge.com\/commodities\/uk-strikes-emergency-deal-c02-producer-restart-operations-amid-shortage\">restart<\/a>\u00a0one of its fertilizer plants this week.<\/p>\n<p>The culprit behind surging natgas prices has been declining flows into Europe via Russia, though there are signs natgas shipments could increase in November. But that won&#8217;t alleviate high prices because stocks on the continent are well below average ahead of the winter season, indicating Europe&#8217;s energy crisis may\u00a0drag on for months.<\/p>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\" data-google-query-id=\"CM7i2LilmvMCFUOHgwgdROQBfQ\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\"><\/div>\n<\/aside>\n<\/div>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/Snag_23be2c46.png?itok=a3FAzJ2k\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/Snag_23be2c46.png?itok=a3FAzJ2k\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Snag_23be2c46.png?itok=a3FAzJ2k\" alt=\"\" width=\"500\" height=\"285\" data-entity-type=\"file\" data-entity-uuid=\"c7f90dd7-0de3-4b4c-90c1-17eea183ce04\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>Disruptions of ammonia supply and other fertilizers have had a significant impact on the production of carbon dioxide supply in the UK, sending the industry into a tizzy and rippling through\u00a0<a href=\"https:\/\/www.zerohedge.com\/commodities\/quite-alarming-uk-energy-crisis-sparks-fresh-chaos-food-suppliers\">food supply chains<\/a>, such as slaughterhouses to packaging to carbonated drinks to dry ice production.<\/p>\n<p>Commodity analysts at CRU Group said half the continent&#8217;s ammonia capacity could be at risk due to dwindling production because of elevated natgas prices. Spot prices\u00a0 of ammonia per ton in Western Europe\u00a0have surged from around $225 per ton at the beginning of the virus pandemic to $700 per ton this month.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/Snag_23c39529.png?itok=odPvy8kR\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/Snag_23c39529.png?itok=odPvy8kR\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Snag_23c39529.png?itok=odPvy8kR\" alt=\"\" width=\"500\" height=\"270\" data-entity-type=\"file\" data-entity-uuid=\"341e50df-335a-42d8-afe0-2699280f898d\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>Borealis&#8217; reduction in ammonia production is a sign the fertilizer crisis continues to ripple across the continent. The company said Thursday it would analyze the situation&#8221; regarding its plants in Austria, France, and the Netherlands &#8211; not much detail was given.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>UK&#8217;s Fertilizer Crisis Spreads To EU After Another Firm Slashes Output Europe&#8217;s energy crisis has claimed another victim, with Austrian fertilizer producer Borealis AG slashing the output of ammonia after the cost of the primary feedstock, natural gas, compresses margins in an industry already facing tight supplies, according to\u00a0Bloomberg. Borealis&#8217; ammonia-producing plant uses natural gas [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[281,4844,554,31842,31091,3237,820,2080,4318],"class_list":["post-59502","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-europe","tag-fertilizer","tag-natural-gas","tag-natural-gas-shortages","tag-supply-chain-disruptions","tag-supply-chains","tag-uk","tag-united-kingdom","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59502"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59502\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}