Urea production: the economics

This data-file captures the economics of producing urea, an important fertilizer and intermediate for the materials industry.

We estimate a marginal cost of $325/ton, with the majority of the world’s 180MTpa urea capacity situated in areas with low cost energy inputs, equivalent to $2/mcf.

CO2 intensity averages 1.5 tons of CO2 per ton of urea, which is disaggregated in the file across ammonia inputs, CO2 inputs, electricity inputs and heat inputs. These numbers can all be stress-tested.

Sensitivity matters. At $6-10/mcf gas prices, marginal costs of producing urea increase to $400-500/ton. The model is based on data-points from actual production facilities and technical papers.

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