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Natural Gas Price Causing Problems03-18-10 | News

Natural Gas Price Causing Problems




When natural gas prices are $2.50 per thousand cubic feet, the natural gas used to manufacture 1 ton of anhydrous ammonia fertilizer costs $83.75. If the price rises to $7.00 per thousand cubic feet of natural gas, the cost of natural gas used in manufacturing that ton of anhydrous ammonia rises to $234.50, an increase to the manufacturer of $150.75.
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The price of nitrogen fertilizers is directly related to the price of natural gas (methane). Manufacturing 1 ton of anhydrous ammonia fertilizer requires 33,500 cubic feet of natural gas. This cost represents most of the costs associated with manufacturing anhydrous ammonia because even though the atmosphere is composed of 80 percent nitrogen it is not in a form plants
can use.

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The other source is urea which is formulated by a reaction between anhydrous ammonia and carbon dioxide, also at high temperature and pressure. Ammonium nitrate is formulated by combining anhydrous ammonia and nitric acid in a very corrosive manufacturing climate. Solution liquid fertilizers (28 to 32 percent nitrogen) are composed of one-half urea and one-half ammonium nitrate. It’s pretty hard to apply a nitrogen fertilizer formulation that doesn’t have natural gas in its manufacturing process.

If you want to discontinue using nitrogen fertilizers or reduce rates until the prices come down you collect soil samples to see if they have high levels of residual nitrogen. If so, you can reduce or even eliminate the use of nitrogen fertilizers without reducing yield. The very wet winter we had this year makes it unlikely that large amounts of nitrogen carried over, but it doesn’t hurt to check.

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