US to fund lower-emission fertilizer with eye to greener ethanol

By Leah Douglas

(Reuters) - The U.S. Department of Energy plans to spend $36 million on technologies to lower emissions from applying synthetic nitrogen fertilizer to corn and sorghum used in ethanol production, the agency said Thursday.

The money would support projects that reduce the amount of fertilizer needed for farms while maintaining yields, the agency said.

WHY IT'S IMPORTANT

Agriculture accounts for about 11% of U.S. greenhouse gas emissions, according to the Environmental Protection Agency.

Nitrous oxide emissions, stemming in part from the application of nitrogen fertilizer, make up about half that amount, the agency said.

The ethanol industry, seeking growth opportunities as the rise of electric vehicles shrinks the gasoline market, stands to benefit from lucrative federal and state subsidy programs the more it can reduce the fuel's emissions.

Ethanol producers suffered a setback in April when the Treasury Department issued guidance making it nearly impossible for ethanol to qualify for a sustainable aviation fuel tax credit passed in the Inflation Reduction Act.

KEY QUOTE

"Given the importance of agriculture to the energy sector and our economy, technologies that reduce fertilizer-related energy emissions associated with ethanol, while shrinking operational costs and maintaining crop yields for the American farmer, are essential," said Evelyn N. Wang, director of the DOE's Advanced Research Projects Agency-Energy program.

(Reporting by Leah Douglas; Editing by David Holmes)

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