August 17, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Macquarie Asset Management (MAM) has agreed to invest up to US$325 million in Atlas Agro and its affiliated project entities via its Macquarie GIG Energy Transition Solutions (MGETS) fund to scale the production of green nitrogen fertilizer. 

Headquartered in Zug, Switzerland, Atlas Agro focuses on the development, construction, and operation of green nitrate fertilizer plants with the goal of decarbonizing and boosting the efficiency of global agriculture. 

Just like the evidence of rising atmospheric CO2 levels first reported in the 1950s, there is now increasing evidence that synthetic nitrogen is correlated to the degradation of farm soils. And as food demand increases, so does the use of synthetic nitrogen, degrading more soils and intensifying the threat to our global food system – creating a negative feedback loop. 

Crops utilize only about half of the synthetic nitrogen applied to fields, and a portion is emitted as nitrous oxide, a greenhouse gas that is 300 times more potent than carbon dioxide and other nitrogen gasses. This has resulted in nitrogen becoming the top source of crop-related greenhouse gas emissions.

Green nitrogen fertilizers aim to address these environmental impacts by capitalizing on more ecologically sound production methods and involving more controlled nutrient release mechanisms. Often derived from renewable resources like plant residues, animal waste, or even bacteria, these alternative inputs are less energy-intensive and recycle organic matter back into the soil.

Furthermore, green nitrogen fertilizers are designed to release nutrients gradually, in line with a  crop’s natural growth progression. This parallel approach reduces runoff, the contamination of natural ecosystems, and reduces water pollution. As their usage promotes soil health, these fertilizers also enhance nutrient retention and play a significant role in achieving more sustainable food production systems. 

Atlas Agro is building industrial scale green nitrogen fertilizer plants in the U.S. and Latin America that use green hydrogen in their production process in lieu of the fossil fuels used in conventional fertilizer production processes.

Through its innovative business model, the company will locally produce competitive, carbon-free nitrate fertilizers in agricultural regions, displacing imported products that carry a significant carbon footprint from both their production and transportation needs. 

This investment will be key in enabling Atlas Agro to pursue its expansion across the Americas, and then globally, and will support the company in realizing its vision of providing a sustainable alternative to conventional, fossil fuel-based products that heavily contribute to greenhouse gas emissions. 

Petter Østbø, CEO, Atlas Agro, commented, “MAM, with their experience in projects and infrastructure, ability to initiate support investments with a wide range of expertise and their commitment to accelerate decarbonization of hard-to-abate-industries, is an ideal partner for us as we approach construction of our first plants in the United States.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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