- Russia’s invasion of Ukraine has demonstrated the harmful effects of the world’s reliance on fossil fuels, strengthening the case for replacing fossil fuels with renewable energy sources
- The invasion has destabilized the fertilizers market, with Russia threatening to halt exports and Yara announcing a planned reduction in production
- FuelPositive understands the importance of independence from market forces that may negatively affect consumers
- The company is working on rolling out its green ammonia production system, with the planned launch of initial units set for this summer
Russia’s invasion of Ukraine has greatly impacted the global economy, with commodity prices soaring to all-time highs and the energy sector reeling from the ever-increasing cost of crude oil and natural gas. Described as a “needless war of choice” in a March 8 White House Fact Sheet (https://ibn.fm/aMo1x), the conflict has brought to light the global dependence on fossil fuels, the deleterious impacts of their curtailed supply on whole sectors, and their ability to fund and fuel wars. To that end, countries the world over are now working to avert such adverse outcomes in the future.
In an Executive Order announced in the foregoing Fact Sheet, the United States banned the import of Russian oil, liquified natural gas, and coal to the country. The ban, the Fact Sheet notes, builds on various economic sanctions the United States and other countries have already imposed on Russia, with the latest move aiming to deprive Russia’s President Vladimir Putin of the economic resources he relies on to wage war. For context, last year the U.S. imported about 700,000 barrels per day of crude oil and refined petroleum products from Russia, contributing to the latter’s almost $500 million daily revenue from the sale of fossil fuel. But observers note the United States’ move will drive up the country’s energy prices even further.
While the White House acknowledged that some of its allies might not be capable of completely banning Russian natural gas and oil, the European Union (“EU”) policymakers in charge of energy matters recently announced a 10-part plan to cut the EU nations’ deep reliance on Russian natural gas and accelerate the continent’s move away from fossil fuels. The plan, a recent Inside Climate News article reports, aims to cut the EU countries’ Russian natural gas import by about 33% within the next year, before eventually doing away with them altogether (https://ibn.fm/BgUe2).
Overall, the reactive measures EU nations and the U.S. have come up with or instituted strengthen the case for a move away from fossil fuels to renewable energy sources, and from centralized production and supply chains to decentralized, local production. They make a case for these changes in other sectors as well.
For instance, Russia is seeking to end fertilizer exports by local producers, a move that has sent shockwaves in the global markets, threatening to push the already high prices of the vital crop nutrients to previously uncharted territories (https://ibn.fm/yWnCf) and undermine food security. Russia is the largest exporter of fertilizer; more specifically, it holds the first position as the world’s largest exporter of urea and number two for both potash and urea. This impending threat is exacerbated by a recent announcement by one of the world’s largest manufacturers of fertilizer, Yara, that it would reduce its ammonia and urea output in France and Italy due to the high natural gas prices (https://ibn.fm/h7BWg).
The various effects of the Russia-instigated conflict in Ukraine perfectly exemplify the market forces narrative synonymous with the global trade and which negatively affects consumers, including farmers, in situations such as this. FuelPositive (TSX.V: NHHH) (OTCQB: NHHHF) understands this and has long been championing independence and decentralization through the development of its in situ, modular, scalable, proprietary green ammonia production system that, powered by sustainable electricity, produces green ammonia from water and air.
The system does away with the reliance on fossil fuels, which are central to the production of both hydrogen and traditional (“grey”) anhydrous ammonia. The former is produced by combining steam and natural gas (methane) at high temperatures, while the latter is generated through the highly pollutive and energy-intensive Haber-Bosch process. And with the Intergovernmental Panel on Climate Change (“IPCC”) having recently released its Sixth Assessment Report entitled “Climate Change 2022: Impacts, Adaptation, and Vulnerability” highlighting the effects of climate change (https://ibn.fm/GlHIX), FuelPositive’s system, set for initial rollout late this summer, will hit the market at just the right time.
FuelPositive is positioning its system to target the agricultural sector by providing a decentralized source of the much-needed green ammonia fertilizer, especially given that 80% of all ammonia produced worldwide is used to manufacture fertilizer. As a decentralized source of green ammonia, FuelPositive’s on-farm system will offer independence from price fluctuations and an unpredictable supply chain, as established in a Manitoba case study conducted last year (https://ibn.fm/Id1Kw). The investigation revealed that the company’s technology was roughly 40% cheaper to the end-user than a similar quantity of grey ammonia at the time. And skyrocketing anhydrous ammonia prices will only increase these comparative operating margins.
In the present unpredictable market where prices appear to be on an unfettered increase, FuelPositive’s system could offer the much-needed reprieve, insulating farmers against the harsh market forces and subsequent unexpected price hikes that may eat into their profits. Farmers will have absolute control over the amount of ammonia they produce on their farms, when they want to use the ammonia, and the cost of its production – all while eliminating carbon emissions from the production process.
For more information, visit the company’s website at www.FuelPositive.com.
NOTE TO INVESTORS: The latest news and updates relating to NHHHF are available in the company’s newsroom at https://ibn.fm/NHHHF
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