BASF and Yunnan Yuntianhua Co. Ltd., a China-based manufacturer of chemical fertilizer, have launched a pilot project in China to verify the reduction of CO2e emissions from the use of Yuntianhua’s stabilized urea fertilizer containing BASF’s urease inhibitor Limus. The results are expected to support climate smart farming initiatives in China and program expansion opportunities globally.

Around 15% of nitrogen in urea fertilizer is lost to the atmosphere as ammonia, causing a deterioration in air and water quality. Additionally, applied nitrogen released as nitrous oxide can enter the atmosphere as greenhouse gas. Along with the environmental effects of nitrogen loss, farmers suffer economic and yield quality losses as less nitrogen is available to crops when they need it most.

Applying Limus urease inhibitor on urea fertilizer stabilizes the urea and emits less ammonia and nitrous oxide than standard, non-treated fertilizers. The first results of the pilot project are expected to be reported in 2024. The methodology has been validated by an independent auditor according to the international ISO 14064 standard. Based on learnings from the pilot project, BASF commits to explore similar opportunities with other fertilizer manufacturers in China and other countries globally. The aim is to enable upstream producers in the agricultural value chain to obtain verified emissions reductions from the use of stabilized nitrogen fertilizers.

BASF also collaborated with First Climate, a leading global provider of carbon management and green energy service, to develop and implement the pilot project in China. First Climate is involved in developing the methodology for quantifying the project’s emissions reductions and in monitoring the project outcomes. The organization will also support the marketing of the carbon credits issued from the project’s emissions reduction.

“We are excited to be a pioneer with Yuntianhua in bringing more value to farmers in China through this climate smart farming initiative,” said Dr. Markus Schmid, N-Management business lead at BASF. “Our work with Yuntianhua will set the stage for future, similar projects with partners along the food value chain, which we as BASF are actively seeking.”

Shuxin Zhai, deputy general manager of Yunnan Yuntianhua Co. Ltd. and general manager of Yuntianhua Agricultural Material Chain Co. Ltd., commented: “Partnership is the cornerstone to accelerate the path towards transformation. BASF is the ideal innovative partner of Yuntianhua, which is in line with Yuntianhua's development vision and strategic goals. We look forward to reaching a deeper and broader collaboration in the future to jointly solve the pain points and difficulties in fertilizer innovation and product upgrading.”